Colorado Bankruptcy
Bankruptcy is found in all the parts of the world and the United States is no exception to this. Many a companies and persons declare themselves bankrupt in U.S every year. To deal with the cases of bankruptcy, there are many bankruptcy courts in the different states and districts of United States. These courts have their own areas of jurisdiction and there is no encroachment
Of one area into another. Colorado in the United States has got its bankruptcy court too where all the cases of bankruptcy are dealt with. Let us discuss more about it in our next part of discussion.
Bankruptcy in Colorado:
All the persons and the companies that wish to declare themselves bankrupt have to file the petition for the same in the bankruptcy court of Colorado. It is to be noted here that it is mandatory to first file the application for bankruptcy in the court of law under various chapters of bankruptcy as per the U.S bankruptcy law and only then, bankruptcy can be claimed. For this purpose, a person has to contact the Colorado bankruptcy court, which he can easily contact at Denver, CO 80202-2508. The contact number of the court is 720-904-7300 and any person can call at this number.
It is also to be noted that the application for the bankruptcy is to be filed as per the specified format. The bankruptcy court of Colorado does not accept the motions, applications, claims, and statements etc that are sent to the court through email. Thus, the application has to be filed physically in the Colorado bankruptcy court. If a person wishes to get the information from the official site
of the court, he can easily get the information regarding the bankruptcy law in Colorado, the exemptions, and the various offices of the court and the statistics of the bankruptcy court.
The Laws Applicable and the Exemptions
The bankruptcy law that is applicable to all the persons, companies etc in Colorado are essentially the same as is applicable in the other parts of the United States. The reason for the above is that the U.S bankruptcy law is applicable to all the states and it is formed at the federal level and not at the state or the district level. Thus, the provisions of the bankruptcy law are same in whole of the United States.
As far as filing the application for the bankruptcy is concerned, a person or a company can file the application for the bankruptcy under either of two chapters as per the U.S bankruptcy law in Colorado. These are:
The first chapter is the Chapter 7 of bankruptcy. All the persons, companies etc that wishes to file bankruptcy under this chapter must be aware of the fact that the bankruptcy trustee appointed by the bankruptcy court has the right to sell all the non-exempt assets of the debtor so that the proceeds can be used to pay off the various creditors of the bankrupt person or the company. Thus this chapter necessarily deals with the sale of the non-exempt assets of the bankrupt person or company so as to distribute it to the various creditors. Also, there is a fresh start that a person or a company gets that file bankruptcy under this chapter of the U.S Bankruptcy law.
The other chapter under which the bankruptcy can be filed in Colorado is the Chapter 13 of bankruptcy. Under this chapter of Bankruptcy, the debtor himself draws a repayment plan for paying off its various creditors. This plan is spread over the years and the bankruptcy trustee appointed by the court sees to it that the bankrupt debtor strictly follows the repayment plan. Thus, if a person files for bankruptcy in Colorado under this Chapter, there is no immediate sale of the assets of the debtor and also, there is no fresh start as such as it is in chapter 7 of the U.S bankruptcy law.
Given above are the two laws under which a person can easily file the bankruptcy in Colorado. As far as exemptions are concerned, there are many assets that are exempt by the U.S bankruptcy law from the sale. It essentially means that the bankruptcy trustee appointed by the court to distribute the proceeds among the various creditors of the bankrupt person or the company can never sell these assets. Thus, these assets can be kept even application for the bankruptcy has been filed. The exemption is given in terms of value. It is very important to understand correctly the meaning of the word equity to understand fully the exemptions in Colorado.
The equity means the difference between the value of the property and the claims against that asset. For example, if a person owes a house in Colorado whose value is about $100000 and the house loan stands at $70000, the equity of the house would be $30000. Also, in the case of various loans, the equity is covered by the exemptions in Colorado and a person can easily continue making payments on the loan. The exemptions in Colorado is available in the case of homestead which is about $30000, insurance including the disability benefit of $200 per month, and pensions. The exemptions in insurance also include the fraternal benefits, group life insurance policy, homeowners insurance, and the life insurance.
The exemption is also available in the personal assets like the washing machines, furniture, and jewelry in Colorado. The unemployment benefits and the pensions for the veterans are also exempted in Colorado. Personal injury covers are also exempted. Thus, there are many exemptions in Colorado and for getting the full information about it; a person can easily contact the bankruptcy court of Colorado or its various offices.
So, U.S Bankruptcy Law is Applicable in Colorado also
After reading the above article, it can be rightly said that the United State Bankruptcy law is applicable in Colorado also and a person or a company, that wishes to file an application for bankruptcy, can easily file it under the two chapters mentioned above in the bankruptcy court of Colorado or its various offices. There are some exemptions also that are allowed in Colorado that have also been discussed above.
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