In today's slow economy, more U.S. citizens than ever are faced with impossible amounts of debt - and Colorado is no exception. Many Colorado residents, faced with crippling debt, are contemplating bankruptcy. In some instances, bankruptcy is a logical choice for anyone looking for a way to start over. However, many consumers are reluctant to file bankruptcy because they fear losing important assets like their home, car, or retirement benefits. Fortunately, the State of Colorado allows residents to keep their most important possessions while relieving themselves of crippling debt.
In fact, the state of Colorado is one of the most progressive in the country when it comes to bankruptcy. This is due in large part to Colorado's relatively generous bankruptcy exemption rules. When a consumer files chapter 7 bankruptcy in Colorado, they're entitled to a series of exemptions. Exemptions are an important legal right that allow people who are filing bankruptcy to keep important assets like their car or their home.
While Colorado's exemptions are some of the most generous, all U.S. states have bankruptcy exemptions of some kind. This is because bankruptcy - which is legal the process of escaping insurmountable debt - is a constitutional right. The founders of the United States believed that every person is entitled to protection from creditors, so they were sure to include this right in the constitution. Since the U.S. has been founded, many famous people - such as Mark Twain, Walt Disney, Milton Hershey, and even former President Harry Truman - have taken advantage of the right to file bankruptcy.
First and foremost, the purpose of bankruptcy is to protect citizens from crippling, overwhelming debt. Since protection is the ultimate goal of bankruptcy, Colorado's lawmakers have defined fairly generous exemptions for residents. Specifically designed to help consumers start over, Colorado allows its residents to exempt as much as $60,000 dollars worth of home equity. This allows people to file bankruptcy and start their lives over without losing their most valuable asset (their home).
A person's home isn't the only asset that's exempted. Colorado also allows consumers to file bankruptcy without losing their vehicle. Since cars are so important in our everyday lives, it makes sense that they should be protected during bankruptcy. Colorado consumers who file bankruptcy are also allowed to keep tools that are necessary for work, retirement assets, and basic necessities such as clothing and furniture.
Colorado's bankruptcy exemption rules are designed to help consumers, but they're not some sort of pass that allows people to avoid their obligations. When a consumer files bankruptcy, any cash, second homes, or valuables they have may be taken and distributed to creditors. These valuables can include clothing, jewelry, furniture, artwork, and even family heirlooms. If you're serious about filing bankruptcy and you'd like to avoid losing your valuables, there are some strategies you can implement, but you must consult with a bankruptcy attorney to learn more about these strategies and how to implement them.
Bankruptcy isn't something that should be taken lightly, and anyone considering bankruptcy would be smart to consult with an attorney. Filing bankruptcy can be a complicated legal process. There can be a lot of preparation involved, and if mistakes are made there can be serious legal and financial ramifications. Bankruptcy lawyers are invaluable because they can help consumers avoid costly mistakes.
Bankruptcy isn't always a simple process, and it's not a trick that allows consumers to avoid obligations. However, bankruptcy is a legally guaranteed right and a great way for some consumers to get out from underneath inescapable debt. It might not be for everyone, but bankruptcy is a smart financial choice that is legally guaranteed. Colorado residents are fortunate to live in a progressive, consumer-oriented state with substantial bankruptcy exemption rules. So, if you're considering bankruptcy and you live in Colorado, your next step should be to contact a bankruptcy attorney and discuss your options.
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