Denver Bankruptcy Attorneys - Law Office of Andrew McKenna

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    Contact us today at 303-730-8819, or use our CONTACT PAGE to request your free Telephone Consultation with Andrew F. McKenna, The Bankruptcy Attorney.

  • Effect of Filing for Bankruptcy in Colorado

    Filing for bankruptcy in Denver is not a simple matter. It’s a federal court process that can have ramifications for years to come and it can impact your credit, the outcome of pending lawsuits, your ability to keep your home, vehicle or other possessions, and your obligations to pay student loans. It can also impact family members to whom you owe money and anyone who shares your debts via joint bank loans and credit cards or who has cosigned a loan for you.

    At The Law Office of Andrew McKenna, our Denver bankruptcy attorneys have been assisting clients in making a fresh financial start for almost 40 years. If you are uncertain about what to do to get back on solid financial ground, call us today for a free and confidential consultation to protect your rights.

    How will filing for Bankruptcy Effect me?

    • Credit Score: One of the enduring myths of bankruptcy is that it will ruin your credit score. In fact, going through the bankruptcy process will permit you to begin rebuilding your score. The reality is that the vast majority of consumers who are contemplating bankruptcy have already ruined their credit. Late payments, maxed out credit cards,  repossessions, foreclosures and judgments have done the damage. Bumping along the bottom drowning in debt will do nothing to help improve the situation. By discharging your debts through bankruptcy, you will almost immediately begin to improve your credit profile.
    • Pending Lawsuits: Once you file for bankruptcy protection, an automatic stay is issued, which prevents creditors from taking any further action against you. In many cases in which protection is filed before a judgment is obtained or a lien is in place, a bankruptcy may end the lawsuit and any additional efforts to collect. In some cases, once a judgment has been obtained, the legal issues can become more complicated. However, unless you owe the government or child support or other exempt debt, a bankruptcy may well discharge the obligation. Your attorney may need to take extra steps to get rid of the lien.
    • Home and Vehicles: In the vast majority of bankruptcy cases, consumers who can keep their home and car, provided they wish to do so. Bankruptcy laws exempt up to $60,000 in home equity and up to $5,000 in vehicle equity. Additional protections exist for vehicles and second mortgages. The question that more often comes into play is whether a house or vehicle is an asset or a liability – and whether the consumer would be better off including them in a bankruptcy. Still, the ultimate decision often rests with the consumer.
    • Student Loans: In many cases, student loans cannot be discharged through bankruptcy, although certain hardship exemptions apply. And most federal student loans have hardship assistance available, including reduced payments and debt forgiveness. For those that must ultimately be repaid, getting rid of other debts, such as credit card debts and bad auto loans, can permit a consumer to focus on paying a student loan and putting it behind them.
    • Retirement Accounts: Most retirement accounts, including 401ks and IRAs, are protected from seizure during bankruptcy.

    Cosigners and Debts to Families

    Those experiencing money problems often turn to family members or friends for help. Sometimes money is borrowed. Other times a cosigner is needed to secure an auto loan or other financing for a friend or relative whose credit has taken a hit through tough times. Those closest to us are often willing to help. And it’s only natural to want to repay the favor by not sticking them with the bill via bankruptcy.

    However there are some things you need to know to keep yourself, and your family, out of trouble.

    • Cosigners: Filing for Chapter 7 bankruptcy will leave a cosigner responsible for a loan. Your cosigner may not be stuck with the bill if you file for Chapter 13 and keep up with the payment plan.
    • Friends and Family: Attempting to repay family and friends, either before or during the bankruptcy process, can have negative consequences. Bankruptcy law does not allow you to show preferential treatment to creditors. Failure to follow the law could result in a relative or friend being sued by the bankruptcy court on behalf of other creditors.

    Contact a Colorado Bankruptcy Attorney Today

    If you need bankruptcy assistance in Denver or would like more information, call The Law Office of Andrew McKenna today at 303-730-8819for a free consultation or contact us online. We are a debt relief agency. We help people file for bankruptcy under the Bankruptcy Code. Serving clients in Denver and throughout Colorado, including Aurora, Englewood, Lakewood and Boulder.

    Denver Bankruptcy Help – 303-730-8819– Free Consultation


    20 Years of Experience
    NACBA Member
    Only represents consumers
    BBB Accredited, A+ Rating

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    North Metro Denver Office – 11154 Huron
    St. Northglenn, CO 80234

    South Metro Denver Office – 3801
    E. Florida, Suite 400, Denver, CO 80222


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