What are the different types of Personal Bankruptcy?
There are three different types of personal bankruptcy that you can file in Colorado; Chapter 12, Chapter 13, and Chapter 7. A Chapter 12 bankruptcy is used exclusively by family farmers. A Chapter 13 bankruptcy requires you to pay back some or all of your debts through a debt repayment plan. A chapter 7 bankruptcy discharges most of your unsecured debts in the fastest possible manner.
What are the requirements to file a chapter 7 bankruptcy?
In order to file a chapter 7 bankruptcy you have to pass the “means test.” The means test looks at your income, debts, and expenses, to determine whether or not you can afford to pay back your creditors. If the test finds that you are able to pay back some of your creditors you will be required to file a chapter 13.