Mistakes Debtors make before contacting me.

1.  Borrowing against or cashing in a retirement account or cash surrender lafe insurance policy in an effort to keep current on consumer debt.   Retirement accounts and most life insurance policies are “exempt” property in the event of bankruptcy.  Exempt means that you cna keep the property and file bankruptcy.  By borrowing against these exempt assets you are giving up your exempt property.

2. Taking out a second mortgage on your home or drawing on a line of credit (HELOC) in an effort to keep current on unsecured consumer debt.  Replacing unsecured debt with secured debt only works if you are sure that you can pay the new secured debt.

3. Agreeing to guarantee a child’s student loans or borrowing money from a student loan lender on behalf of a child.   Govenment guaranteed student loans are not dischargeable.  Students are often finding that the money spent on tuition (now non-dischargeable debt) does not qualify them for a lucrative career, after all. 

4.  Even if you have made these mistakes call me.  I can help.

Simply put, exempt property is property that you keep when you file chapter seven bankruptcy.  Generally the necessities of life are exempt while any non-necessary or luxury property are non-exempt.  Non-exempt property is either surrendered to the bankruptcy trustee (for sale and distribution to your creditors), or you may purchase your own non-exempt property back from the trustee.    This exempt property list is stingy in certain areas and generous in others.  A good attorney can coach you in the conversion (in whole or in part)  of non-exempt property into exempt property prior to filing of your bankruptcy.  The most important role that your attorney plays in in deciding the precise time for your filing.

Colorado Bankruptcy Help offers free consultations to help you determine which bankruptcy filing might work for you.

You need a fresh start.   Let us see how we can help!