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Bankruptcy protection is in place to protect you from creditors, to arrange your finances to give you a "fresh start", it "gives to the honest but unfortunate debtor…a new opportunity in life and a clear field for future effort, unhampered by the pressure and discouragement of preexisting debt." Local Loan Co. v. Hunt, 292 U.S. 234, 244 (1934)

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Terner Law is experienced in Debtor representation, and has worked with hundreds of clients in front of the United States Bankruptcy Court, District of Colorado. We can help you prepare your filings, file them, and represent you at the Meeting of Creditors, for a fixed, affordable fee. Shop around - many Bankruptcy attorneys do not advertise their rates, or tell you that you should pay their "fair price" instead of making this process as AFFORDABLE as possible to YOU. Should further representation be necessary (in case of objection(s) by Creditors or Trustee), Terner Law can represent you in meetings with the US Bankruptcy Court's attorneys and Judges, at an agreed upon hourly rate. As this is a process for regrouping, and assessment of debt and income for clients in financial straits, Terner Law makes every effort to create affordable representation to clients.

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"Assisted Person" - If you fit the legal description of an "assisted person" (an "assisted person" is any person (individual, partnership, L.L.C., or corporation) whose debts consist primarily of consumer debts and the value of whose nonexempt (unprotected) property is less than $150,000), then This firm is a Debt Relief Agency helping people file for bankruptcy relief under the federal Bankruptcy Code, therefore many disclosures and a SPECIFIC client intake process are required by law.

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We can work with you to find your exemptions at law, the property you are allowed to keep during a Bankruptcy Petition, and will work with you to help you get a new start. The largest hurdle in Insolvency Proceedings is getting the client in to file, as many people mistakenly believe that there is some stigma to Bankruptcy filing. Nothing could be further from the truth. A Debtor who cannot pay his/her debts and lets them pile up only reduces his/her credit rating more, and risks having creditors put liens upon or request seizure of their real and personal property. Bankruptcy protection is a smart option that allows people to work out their troubles, and restart their lives and/or businesses.

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Creditor harassment - The Fair Debt Collection Practices Act regulates debt collectors and how they treat debtors, with fines for violations. We can help you assert your rights against creditors violating this Act. Once you file your Bankruptcy Petition, an Automatic Stay goes into effect, preventing seizure of property, wage garnishments, foreclosures on real property, and auto repossessions.

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Since the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) (Pub.L. 109-8, 119 Stat. 23, enacted April 20, 2005) has created a lot of changes to the U.S. Bankruptcy Code, there are hurdles to filing a successful petition that did not exist prior to this law. There is a strict "means test" that forces many families with above state median income into a Chapter 13 Plan, rather than allowing them a Liquidation under Chapter 7. There is now a 90 day "look back period" during which "luxury goods" purchases of $500 and above may create a presumption of abuse in credit card debt. Cash advances during that period are now presumed abusive if $750 and above. As BAPCPA has increased the liability of attorneys filing Petitions for clients, attorneys now must conduct an investigation into the finances of our clients.

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Filing Fees: There is a filing fee due the Court of $306 for a Chapter 7, $281 for a Chapter 13.

 

If your household income is less than 150% of the National Poverty Guidelines, however, and you can't pay the filing fee in installments, 28 U.S.C. 1930 allows for a WAIVER of said filing fee.

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FEES:

 

FLAT FEE: Chapter 7 - $750.00 per client/ $1200 for couples.

To Amend Schedules D, E, or F, the Court charges $30.00.

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Chapter 7, Title II USC. Liquidation.

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A typical Chapter 7 Debtor will not have to appear in court in front of a Bankruptcy Judge, who is the decision-making official with power over a Chapter 7 Petition for Discharge, unless an objection is raised in his/her case over whether s/he is eligible to file or whether a debt or debts is/are eligible for discharge. Usually, the only proceeding a Debtor has to attend is called a Meeting of Creditors, at which creditors may question the Debtor under oath as to the debts owed. It is commonly called a "341 Meeting" and is held in front of the Trustee assigned to the Debtor's Bankruptcy Petition.

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A typical Chapter 7 Debtor has little to no nonexempt assets or property, there will usually not be a "liquidation" of assets by a Trustee, but when a Debtor owns nonexempt assets, they can be seized and sold to pay off part of the debts the Debtor owes. Bankruptcy counsel (attorneys) help Debtors determine whether their assets are exempt or nonexempt, and to what extent. Sometimes, if a Debtor has a lot of nonexempt assets, it may be advisable to create a Chapter 13 "Plan" and pay off a portion of the debts owed, rather than risk the seizure of substantial nonexempt property by the Trustee.

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Typical cases are called "no-asset cases." A creditor holding an unsecured claim will get a distribution from the bankruptcy estate only if the case is an asset case and the creditor files a proof of claim with the bankruptcy court. In most Chapter 7 cases, if the Debtor is an individual, he or she receives a discharge that releases him or her from personal liability for certain dischargeable debts. The Debtor normally receives a discharge just a few months after the petition is filed.

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Means Test - Amendments to the Bankruptcy Code enacted in to the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 require the application of a "means test" to determine whether individual consumer Debtors qualify for relief under Chapter 7. If such a Debtor's income is in excess of certain thresholds, the Debtor may not be eligible for Chapter 7 relief.

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Credit Counseling - Debtors now have to undergo Credit Counseling and Debt Education at certified centers (there are online lists of certified providers) to complete the Petition for Discharge under Chapter 7.

Exempt Property - We will work with you to determine what property you own may be exempt from seizure by the Bankruptcy Trustee and to assert your exemptions in your Petition.

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A Debtor will typically also provide a copy of his/her credit report to the Trustee at the "341 Meeting" to ensure that all known debts are listed at filing, and that a good faith effort has been made to notify all creditors of the Chapter 7 filing. Some attorneys charge for retrieving your credit report. We do not. One free copy of your credit report (from each of three of the largest agencies) is provided you in Colorado by law at this site. Please do not access and download it until you are ready to file. The Trustees usually ask for a printout of bank statements covering the date or month of filing, and pay stubs (if any) at the Meeting of Creditors. You MUST give the Trustee a copy of your latest Federal and State tax returns at least a week prior to the Meeting of Creditors or s/he may ask that your case be dismissed.

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Chapter 13, Title II USC. Adjustment of Debts of an Individual With Regular Income.

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This Chapter 13 is designed for an individual Debtor who has a regular source of income. Chapter 13 is often preferable to Chapter 7 because it enables the Debtor to keep a valuable asset, such as a house, and because it allows the Debtor to propose a "Plan" to repay creditors over time – usually 3 to 5 years. Chapter 13 is also used by consumer Debtors who do not qualify for Chapter 7 relief under the means test. At a confirmation hearing, the court either approves or disapproves the Debtor's repayment plan, depending on whether it meets the Bankruptcy Code's requirements for confirmation. Chapter 13 is very different from Chapter 7 since the Chapter 13 Debtor usually remains in possession of the property of the estate and makes payments to creditors, through the Trustee, based on the Debtor's anticipated income over the life of the Plan. Unlike Chapter 7, the Debtor does not receive an immediate discharge of debts. The Debtor must complete the payments required under the Plan before the Discharge is received. The Debtor is protected from lawsuits, garnishments, and other creditor actions while the Plan is in effect. The Discharge is also broader (i.e., more debts are dealt with) under Chapter 13 than the discharge under Chapter 7.