There’s no way around it: here are strange and dizzying times. Millions of Americans are out of work due to COVID-19 and aren’t exactly sure what their next move financially will be. Granted, the government stimulus check is coming, and people can file for unemployment, but for some, this won’t be enough to ride out the storm. For some, they will face bankruptcy and need a Denver bankruptcy lawyer to help them determine which chapter to file to best protect their assets.

For many Americans and residents in Colorado, living paycheck to paycheck is all we know; it’s not always as easy to build up four months of savings as it sounds. As bills pile up, it’s going to be difficult to pay them all and collectors may start calling and hounding. You may even get notices of eviction, or foreclosure on your home.

Depending on your income level, you will need to file for either Chapter 7, or Chapter 13 bankruptcy. The benefit to both is that once you put in the paperwork with a Denver bankruptcy attorney, the courts put a hold on all collection calls, so you at least have peace of mind while you sort out your finances.

A simple guide for which Chapter of bankruptcy you’ll need to file in Denver breaks down to if you make less than the Chapter 7 means test, which means you’ll file for Chapter 7 and liquidate your assets, or if you have less than $383,175 in unsecured debt (or $1,149,525 in secured debt), you may qualify for Chapter 13 bankruptcy. A bankruptcy lawyer will tell you which is best for you.

When filing for Chapter 7, you may be able to keep your home; with Chapter 13, you do not lose your home. There are other pros and cons to each form of bankruptcy, but they all depend on your income and current situation. As we try to make it through quarantine and lockdown, you may be faced with creditors calling about overdue payments. If this happens, contact our offices to speak with a Denver bankruptcy lawyer who can advise you if filing is your best option. Stay safe.