What to Consider before Filing for Bankruptcy in Colorado

When filing for Chapter 7 bankruptcy in Colorado, you will be required to pass a means test. Your assets will be sold to pay your debts. Student loans, alimony, child support, or some taxes cannot be discharged with Chapter 7 bankruptcy. With Chapter 13 bankruptcy, you will come up with a repayment plan. You will make installment payments to your creditors for three to five years. This type of bankruptcy could allow you to keep your home and other assets. You need to realize that your credit report will be affected for some time. Bankruptcy will stay on your credit report for 7 to 10 years. Therefore, it could be very difficult for you to gain access to new credit.