The Law Offices of Sutton & Sutton 2026-01-06T12:14:43Z https://www.suttonlawdenverwest.com/feed/atom/ WordPress /wp-content/uploads/sites/1601630/2020/11/cropped-favicon-32x32.jpg On Behalf of The Law Offices of Sutton & Sutton https://www.suttonlawdenverwest.com/?p=46132 2022-06-14T07:08:21Z 2018-10-26T06:00:00Z

bankruptcy. But there are situations that waiting on bankruptcy should be considered. If you have determined your best course of action for your financial situation is bankruptcy, you may want to hold off a little while if you encounter any of the following. Your salary has decreased – If you are planning on filing Chapter 7 bankruptcy right away, this can actually hinder the filing. Chapter 7 is for debtors who are unable to handle a three-to-five-year repayment plan and is based on financial need. Your situation may show that you are eligible, but your history may not. Determining if you qualify for bankruptcy is done by the Means Test, which takes your average income from the last six months and compares it to the median income for households like yours in your area. Since the test will use your last six months on income, if you just had a salary decrease due to a demotion or lay off, then this will not be represented of your income from the prior six months. By waiting a little while, the Means Test will use more realistic information. You want to modify a mortgage – Bankruptcy has the advantage of wiping out your debts and giving you a clean slate to work from. However, bankruptcies don’t sit well with lenders and can make them wary. This will be a problem if you are planning to get a loan or modify an existing mortgage. Once your file for bankruptcy, the mortgage promissory note is cancelled leaving you with no ability to negotiate new terms. More debts on the horizon – If you know that more debts will be incurred soon, you may want to delay filing. However, you are not able to rack up frivolous debt with the belief it will just end up being wiped out in the bankruptcy. But once you file for bankruptcy, for Chapter 7 you will need to wait eight years before you can file Chapter 7 again and four years if you want to file Chapter 13. If you file a Chapter 13 you will need to wait two years before filing another Chapter 13 and it will be six years before you can file a Chapter 7 discharge. If you are in a situation that you believe bankruptcy is an option for you, you should speak immediately with a bankruptcy expert to go over your situation. There is no need to wait to start talking about the possibility of bankruptcy, but there may be situations you may want to hold off filing for a little while.]]> On Behalf of The Law Offices of Sutton & Sutton https://www.suttonlawdenverwest.com/?p=46137 2022-06-14T07:08:31Z 2018-08-02T06:00:00Z

common reasons someone might file for bankruptcy in Colorado?

1. Medical bills. Medical expenses are the most common reason for bankruptcy. You or your family member experiences an incident, such as a car accident, that causes damages and you could be left paying the bills. Diseases and other serious illnesses cause cost hundreds of thousands of dollars, and your insurance may not offer much help. These are examples of unexpected and unfortunate situations that can cost you nearly everything.
2. Job loss. You might be laid off for a variety of reasons. However, you did not plan for any of it, and you have been left with no job and no way to pay your bills. Depending on your situation, you might not be able to get a job quickly or one that pays enough for you to catch up. This could leave you struggling living pay check to pay check and taking from savings accounts that you do not want to.
3. Poor use of credit. Using a credit card can catch you off guard if you do not use it carefully. It can be easy to use it for larger purchases and put off making payments. Not making payment can cause your payment to get bigger as interest or late fees are added. Being cautious of what you purchase with a credit card and making monthly payments can help avoid financial consequences.
4. Divorce. A divorce can be time consuming and expensive. Attorney fees and splitting of assets could give you unwanted debts or payments. This can be especially true if you and your ex-spouse have co-signed loans or joint bank accounts. If you had put your career off to the side during your marriage, you might struggle with finances and finding work. This may result in filing for bankruptcy to help get you back on your feet.
5. Other unexpected spending. While medical issues are not something you can plan for other events like a natural disaster or freak accident, could set you back. A major storm such as a tornado or hurricane could cause serious home and auto damages. Having insurance can help in these situations, but it may not always cover everything.

Whether or not filing for bankruptcy is in your future, you can be aware of situations that could escalate to the point of bankruptcy. If you are considering bankruptcy and believe it is the best option for you, speaking with an attorney can help you make that decision and begin the process if necessary.]]> On Behalf of The Law Offices of Sutton & Sutton https://www.suttonlawdenverwest.com/?p=46138 2022-06-14T07:08:38Z 2018-05-03T06:00:00Z

What protections does filing for bankruptcy offer? Filing for bankruptcy isn’t what many people think. Unfortunately, the idea of bankruptcy has gained a bad rap by people who don’t really understand it. For individuals trying to climb out of debt and get back on track, bankruptcy can help you do that with your best foot forward. Bankruptcy helps in several ways including:

• Stops those awful creditor calls. Federal laws prohibit collectors from contacting you once you’ve filed for bankruptcy. Creditors must obtain special permission through bankruptcy court to pursue further action after you file.
• Keeps your car from being repossessed. You can file either Chapter 7 or Chapter 13 bankruptcy to enact an automatic stay. This prevents lenders from repossessing your vehicle for a period of time. You can decide if you want to discharge your car debt and lose the car, or continue to make payments. When you file Chapter 13, you may have the option to create a manageable repayment plan, allowing you to keep your car.
• Ends wage garnishment. When you file, your employer and creditors will be notified in order to put an immediate end to the garnishing of your wages. This is true for debts that can be discharged through the bankruptcy processes. You must note that child support, student loans and other items do not qualify.
• Puts an end or a pause on your home foreclosure. Homeowners have protections through both chapter 7 and chapter 13 bankruptcy. If you are current on your mortgage payments but have other debt, Chapter 7 will temporarily stop a foreclosure. If you are behind on your mortgage, filing for chapter 13 bankruptcy can stop the foreclosure sale of your home. You must be able to make payments through a plan after your case is filed.

Filing for bankruptcy can be complicated. Working with a professional can help ease your concerns. Don’t feel as if you have no options. If you’re overwhelmed by your debt, look into filing for bankruptcy to see if it is the right option for you.]]> On Behalf of The Law Offices of Sutton & Sutton https://www.suttonlawdenverwest.com/?p=46144 2022-06-14T07:08:48Z 2018-01-31T07:00:00Z

Stress in America, money was the second most common source of stress, after concerns about the future of our nation. Financial stress can affect your health Experts have spoken widely about the harmful effects of prolonged stress. The report, Paying with our Health, talks about people with a poor financial situation being unable to live a healthy lifestyle. These people often turn to unhealthy behaviors to manage their stress and most report their health as poor. What can you do about your stress? Your stress is growing, anxiety and depression threaten to overwhelm you. What can you do? Coming to your rescue are these five steps to deal with financial stress:

1. Create a budget: By far, the best tool to get control of your situation is a budget. A budget is a spending plan to help you decide how and where best to spend your money. Have debts? List them out. Add in your monthly expenses. Your income sources should be listed as well. A zero-based budget accounts for every penny and details your plan to save, spend and give.
2. Start an emergency fund: Financial guru, Dave Ramsey, recommends building an emergency fund with $1,000 in it to cover the unexpected. And the unexpected will always happen.
3. Get help: Talking with someone who deals with your type of situation on a regular basis will help give you perspective and ideas. An experienced financial professional can guide you through your best options. If Chapter 7 bankruptcy is filed, collection calls will immediately cease and a clean financial slate will ease your stress.
4. Change what you can: The Serenity prayer says, God, grant me the serenity to accept the things I cannot change, Courage to change the things I can, And wisdom to know the difference. Are there things that you can change to improve your situation? Can you make more money? Do you have a spending problem that needs addressing? Can you learn financial skills to make you more money savvy?
5. Find the positive: This one is about re-framing the mental picture of your life. “Gratitude unlocks the fullness of life. It turns what we have into enough.” —Melodie Beatty.

The important thing to remember about financial stress is that you have to do something. Money problems will not go away on their own. Fortunately, there are steps that you can take. The first step towards getting somewhere is to decide you are not going to stay where you are.]]> On Behalf of The Law Offices of Sutton & Sutton https://www.suttonlawdenverwest.com/?p=46145 2022-06-14T07:08:56Z 2017-12-20T07:00:00Z

Exemptions You won’t be left with nothing after filing bankruptcy. The law protects many assets from liquidation, which are exempt by law. Because the purpose of bankruptcy is to help you get back on your feet, the bank will not take property such as your car and home. However, the law limits exemptions to specific value amounts in different categories. For example, if you have a wedding ring worth $600, you can guard it from liquidation by counting it toward the $1000 value of exempt jewelry. Hiding assets from liquidation Although you might have property that is not exempt, but you are afraid to lose, you cannot hide it or give it to a friend temporarily. This is a form of fraud that can tangle you in a major legal crisis as well as obliterate any chance you have to receive debt relief. To avoid these consequences, be sure to report your assets to the trustee honestly. Liquidation often allows people to keep furniture, clothing, a car, the home, sentimental heirlooms and other property. To know what you would be able to keep and what you might lose, consult with an attorney familiar with Colorado’s bankruptcy laws.]]>