Chapter 13

Once you have decided to file for bankruptcy, you'll need to decide which chapter (7 or 13) is better for you. David M. Serafin is an experienced Denver bankruptcy lawyer who will help you navigate through the myriad and often confusing laws in Colorado, which is particularly necessary considering the 2005 changes to the laws.

Chapter 13 allows an individual debtor to pay back some or all unsecured (and some secured) debts within the protection and supervision of the Colorado Bankruptcy court. Chapter 13 also helps many debtors avoid or delay foreclosure. With the help of an experienced Denver Bankruptcy lawyer, the debtor will submit a written plan to repay all or a portion of his or her debts. If the plan is approved by the court, most creditors can no longer pursue collection activity against the debtor throughout the proceeding. The debtor is required to make monthly payments to the chapter 13 trustee, who disburses a portion of the debtor's plan payment to creditors according to the plan's terms. When all monthly plan payments have been made, the Colorado Bankruptcy Court will discharge a majority of the debtor's unsecured debts.

What is important to know about filing for chapter 13 under the Bankruptcy Code is that all of your debt cannot be discharged. You will be required to pay back a portion (depending upon your monthly income and monthly expenses) of your secured and unsecured debt in a chapter 13 plan. The Law Office of David M. Serafin will aggressively fight to get you a manageable chapter 13 payment plan and the payment plan will be determined from a budget which will help pay your debts.

Chapter 13 is more appropriate those who wish to retain property, such as houses or cars. The Law Office of David M. Serafin will fight to ensure your property is protected from creditors. Because your creditors are more interested in receiving the money which was promised them, and not the property itself, the creditor (in most cases) will typically accept lower amount as part of the payment plan.

Specifically, under the newer laws in Colorado, filing for Chapter 13 may be of particular benefit to you if you want to (and are eligible to):

• Eliminate a second mortgage lien on a primary residence
• Reduce the loan balance and interest rate on a motor vehicle
• Are facing foreclosure of your residence
• Want to "cure" late a late mortgage balance, or
• Pay back taxes without incurring additional interest/penalties

To be eligible for chapter 13, you will need to complete debt counseling, which helps you determine an appropriate monthly budget. You will also need to appear at what is referred to as a 341 Meeting of Creditors. As an experienced Denver bankruptcy lawyer, David M. Serafin will explain every step of the process to you in fighting aggressively for your rights.