How to File for Bankruptcy in Colorado as a Self-Employed Person
Filing for bankruptcy can be an overwhelming process, especially for self-employed individuals in Colorado. Understanding the steps involved can help ease this burden. This guide will walk you through how to file for bankruptcy in Colorado as a self-employed person.
Understand Your Bankruptcy Options
In Colorado, self-employed individuals typically have two main options for bankruptcy: Chapter 7 and Chapter 13. Chapter 7 involves liquidating non-exempt assets to pay off debts, while Chapter 13 enables debtors to reorganize and repay their debts over time through a court-approved plan.
Evaluate Your Financial Situation
Before filing, assess your financial status. Gather a comprehensive list of your debts, income, assets, and expenses. This will not only help you understand whether bankruptcy is the best option but will also be required for your petition.
Credit Counseling Requirement
Federal law mandates that you complete credit counseling from an approved agency within 180 days before filing for bankruptcy. This counseling will provide insight into your financial situation and potential alternatives to bankruptcy that may be possible. Obtaining a certificate of completion will be necessary to file your case.
Choosing the Right Bankruptcy Form
For self-employed individuals, filling out the correct bankruptcy petition form is crucial. You will need to complete the following forms:
- Voluntary Petition for Individuals Filing for Bankruptcy (Form B101)
- Schedules of Assets and Liabilities (Form B106)
- Statement of Financial Affairs (Form B107)
These forms can be found on the U.S. Courts website. Make sure to provide accurate information to avoid delays or complications.
Filing Your Bankruptcy Petition
Once your forms are completed, it’s time to file your bankruptcy petition. In Colorado, you will file with the U.S. Bankruptcy Court for the District of Colorado. You can file in person or electronically, though electronic filing is preferred.
The current filing fee for Chapter 7 bankruptcy is $335, and for Chapter 13, it’s $310. If you cannot afford the fees, you may be able to request a fee waiver.
Preparing for the Meeting of Creditors
After you file your bankruptcy petition, a meeting of creditors, known as a 341 meeting, will be scheduled. This meeting typically occurs about 20 to 40 days after filing. You will need to attend this meeting to answer questions from the bankruptcy trustee and creditors about your financial situation. Prepare thoroughly by reviewing your paperwork and considering the questions that may be asked.
Completing Debtor Education
After your bankruptcy case is filed, you are required to complete a debtor education course from a U.S. Trustee-approved provider. This course can help you manage your finances better in the future. You'll receive a certificate upon completion, which you must file with the court.
Discharge of Debts
If all goes smoothly, you can expect to receive a discharge of your qualifying debts within a few months of filing. Chapter 7 typically takes about 3-6 months, while Chapter 13 may take 3-5 years depending on your repayment plan.
Consider Legal Assistance
Given the complexities involved in filing for bankruptcy, especially as a self-employed individual, you may benefit from consulting with a bankruptcy attorney in Colorado. An experienced lawyer can provide guidance tailored to your specific circumstances and help you navigate the legal process more effectively.
Conclusion
Filing for bankruptcy as a self-employed person in Colorado requires careful planning and understanding of the legal procedures. By following these steps and seeking professional advice when needed, you can take control of your financial future and rebuild your credit.