Best Bankruptcy & Debt Lawyers in Aurora

1. About Bankruptcy & Debt Law in Aurora, United States

In Aurora, Colorado, and across the United States, bankruptcy is a federal legal process designed to help individuals and businesses manage overwhelming debts. The framework is largely set in Title 11 of the United States Code and implemented through the Federal Rules of Bankruptcy Procedure. Local procedures are administered by the U.S. Bankruptcy Court for the District of Colorado, which serves residents of Aurora and surrounding areas.

Bankruptcy options typically include Chapter 7, Chapter 11, Chapter 13, and Subchapter V for eligible small businesses. A local bankruptcy attorney can explain which chapter best matches your finances, assets, and long-term goals. Understanding how exemptions, repayment plans, and discharge work is essential to making an informed decision in Aurora.

2. Why You May Need a Lawyer

• Avoiding foreclosure on an Aurora home - If your mortgage is behind, a bankruptcy attorney can assess whether Chapter 13 repayment plans help you cure defaults and keep your home. A lawyer can also negotiate with lenders to modify terms within the bankruptcy process.
• Stopping wage garnishments and creditor harassment - Filing triggers an automatic stay that halts most collection actions. An attorney can help you maximize protection and respond to any violations by creditors.
• Handling a small business in distress - A local business owner may qualify for Subchapter V to reorganize debts with a simplified plan. An attorney can guide you through eligibility, plan design, and court approvals.
• Dealing with student loan and tax debts - Some debts are non-dischargeable or have complex priorities. A lawyer can explain discharge possibilities, repayment options, and strategies to minimize long-term impact.
• Protecting essential assets with Colorado exemptions - Asset protection strategies depend on whether federal or state exemptions are used. An attorney can tailor a plan that protects critical assets while satisfying court requirements.
• Facing a complicated debt portfolio - If your debts include a mix of credit cards, medical bills, and secured loans, a bankruptcy attorney can organize your schedules, valuations, and creditor claims for a clearer path to discharge or repayment.

3. Local Laws Overview

Bankruptcy in Aurora follows federal law, with important local considerations handled by the District of Colorado. The core federal framework shapes what can be discharged, how plans are proposed, and how assets are treated. Local practice rules guide filings, deadlines, and court procedures in the District of Colorado.

Key laws and regulations to know by name:

• Title 11 of the United States Code (Bankruptcy Code) - Provides chapters, eligibility, and how debts can be reorganized or discharged. The Code governs the basic process you will follow in Aurora.
• Section 522 of Title 11 (Exemptions) - Allows debtors to claim exemptions for property, subject to choosing federal or state exemptions. This choice affects asset protection during bankruptcy.
• Small Business Reorganization Act of 2019 (SBRA), Pub. L. 116-54 - Creates Subchapter V for small business debtors, with streamlined plans and new procedural rules. Effective February 19, 2020, this update has influenced how qualifying businesses reorganize.
• District of Colorado Local Bankruptcy Rules - Local rules govern deadlines, documentation, and procedural requirements for cases filed in Colorado. They work alongside the Bankruptcy Code and Federal Rules.

Recent developments to note include the SBRA changes for small businesses and ongoing updates to local rules that govern filing formats and electronic service. For general guidance, you can consult official federal sources that explain bankruptcy basics and Subchapter V specifics.

According to the United States Courts, most Chapter 7 bankruptcies are completed within 3 to 6 months after filing.

In addition, the U.S. Trustee Program provides information about how bankruptcy protections operate and how trustees supervise cases. This is especially relevant for Aurora residents navigating Chapter 7 or Chapter 13 proceedings. Bankruptcy Basics - United States Courts and UST - United States Trustee Program offer authoritative explanations of these processes.

4. Frequently Asked Questions

What is bankruptcy and why would I file?

Bankruptcy is a legal relief option to eliminate or repay debts under court supervision. People file when debts become unmanageable, and they seek a discharge or a structured repayment plan. A bankruptcy attorney can help you weigh options and protect your interests in Aurora.

How do I start a bankruptcy case in Aurora, CO?

To begin, you typically complete pre-filing credit counseling within six months before filing. Then your attorney files a petition with the U.S. Bankruptcy Court for the District of Colorado. Filing requires schedules, a statement of affairs, and payment of filing fees.

What is the means test and why does it matter?

The means test determines eligibility for certain chapters, especially Chapter 7. It compares your income to state and local benchmarks to decide if you can discharge unsecured debts. An attorney can help you complete the test accurately.

Do I need a bankruptcy attorney in Aurora?

While you can file on your own, a lawyer improves your odds of a smooth process. An attorney ensures proper exemptions, accurate schedules, and timely responses to creditors. This reduces the risk of mistakes that could jeopardize relief.

How much does filing for bankruptcy cost in Colorado?

Costs include filing fees, credit counseling, and attorney fees. Filing fees are set by the court and can change; attorney fees vary by case complexity. A consultation can provide a precise estimate based on your finances.

How long does a bankruptcy case take in Aurora?

Chapter 7 cases typically conclude in 3-6 months from filing. Chapter 13 plans usually span 3-5 years, with monthly payments and ongoing court oversight. Your attorney can give a more accurate timeline for your specific situation.

What is the difference between Chapter 7 and Chapter 13?

Chapter 7 involves discharge of many unsecured debts with liquidation of non-exempt assets in some cases. Chapter 13 creates a repayment plan to pay back creditors over time, often protecting assets like homes. An attorney can assess which chapter aligns with your goals.

Can I keep my home in bankruptcy?

Keeping a home depends on several factors, including loan type, loan-to-value, and exemptions. Chapter 13 often helps catch up missed payments and avoid foreclosure. An attorney can analyze your equity and plan options for Aurora residents.

Is wage garnishment allowed during bankruptcy?

The automatic stay typically stops wage garnishment after you file. Some garnishments may continue if they are based on non-dischargeable debts. A lawyer can address ongoing collection actions and creditor behavior.

Should I file before or after a divorce in Colorado?

Divorce can complicate debt and asset division. Filing before or after depends on asset protection needs and timing of property settlements. A bankruptcy attorney can coordinate with family law counsel to protect your interests.

What happens to student loans in bankruptcy?

Most student loans are not dischargeable through Chapter 7. Chapter 13 may provide a structured repayment plan, while certain circumstances can support discharge or repayment modifications. An attorney can evaluate exceptions and options specific to your case.

What is Subchapter V and who qualifies?

Subchapter V is a streamlined Chapter 11 option for small businesses with debts under a certain threshold. It focuses on faster plan confirmation and reduced administrative costs. A bankruptcy attorney can determine eligibility and guide you through the filing.

5. Additional Resources

Access to credible, official information can help you make informed decisions about bankruptcy and debt relief. Below are resources that provide guidance, eligibility rules, and procedural details.

• United States Courts - Bankruptcy Basics - Official overview of bankruptcy processes, chapters, and discharge. https://www.uscourts.gov/services-forms/bankruptcy/bankruptcy-basics
• U.S. Trustee Program - Federal agency that oversees bankruptcy cases and trustees. https://www.justice.gov/ust
• Colorado Legal Services - Nonprofit organization offering free or low-cost legal help, including bankruptcy advice for eligible residents. https://www.coloradolegalservices.org

6. Next Steps

1. Assess your finances and goals - Gather debt statements, income, assets, and monthly expenses. Decide whether you want discharge or a repayment plan. This helps determine chapter choice.
2. Schedule a consultation with a local bankruptcy attorney - Contact an Aurora attorney to review your options and confirm eligibility. Expect initial meetings within 1-2 weeks of outreach.
3. Prepare and complete pre-filing requirements - Complete credit counseling and compile required documents, including tax returns and payoff letters. Your attorney will guide you on what to bring.
4. Decide on exemptions and filing strategy - Choose federal or state exemptions based on asset protection goals. Your counsel will advise on implications for your home and valuables.
5. File the bankruptcy petition with the District of Colorado - Your attorney uploads schedules, statements, and plans to the court. Filing typically occurs within a few weeks after preparation is complete.
6. Attend the 341 meeting and respond to requests - You and your attorney attend the creditor meeting with the bankruptcy trustee. Expect scheduling within 4-6 weeks of filing.
7. Follow through with plan or discharge requirements - If Chapter 13, adhere to the repayment plan and deadlines. If Chapter 7, comply with any conditions for discharge and asset handling.