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Having debts and worrying about how you’re going to pay them off can be a very overwhelming problem. It makes it hard to move on, reach a financially stable state, or save money to plan for your future. You’re constantly crunching the numbers and thinking of how to make your debt and your income break even while still being able to afford your daily necessities and support your lifestyle.

Filing for bankruptcy gives you a chance to start fresh. A bankruptcy discharge offers you a financially clean slate, with most, if not all, of your debt eliminated. Some debts that can be discharged in a Chapter 7 bankruptcy include:

  • Bank loans
  • Court judgments
  • Credit card debt
  • Medical debt
  • Personal debts
  • Tax obligations

Some debts, however, are not dischargeable under a Chapter 7 bankruptcy. But with all your other debt being eliminated, you’re able to make more room to settle your non-dischargeable debts, such as child support, federal income taxes, student loans, and the like.

Obtaining a bankruptcy discharge, however, is not as simple as it sounds. The process can be confusing, and it’s important you are aware of your rights and what to expect in a bankruptcy case. Things like how your debts are going to be paid off, the liquidation of your assets, etc., are considerations that you need to be aware of so that you don’t get caught off-guard during the case.

This is where a bankruptcy lawyer comes in. An experienced bankruptcy attorney who specializes in this practice area can help businesses and individuals file for bankruptcy and increase the chances of you getting a discharge. Our Centennial bankruptcy lawyers are backed by the experience, expertise, and knowledge to guide you through your case.


If you are thinking about filing a Chapter 7 bankruptcy, you first need to determine if you are eligible. Those who can file for Chapter 7 are those living, doing business in, or owning property in the United States.

Further, you must pass the means test if you are a high-income filer, which helps the court determine if you need the relief of a Chapter 7 discharge or if you are capable of paying your debt without it. Not passing the means test can also convert your case from Chapter 7 to Chapter 13 Bankruptcy, which binds you to a payment plan wherein you need to pay your debts in arrears within 3-5 years.

The means test looks at all your financial records, including, but not limited to:

  • Income
  • Expenses
  • Secured and unsecured debt

The means test has two parts to help determine if you are eligible for Chapter 7. The first part measures your income and whether it is below the median income in your State. If your income for the last 6 months prior to your filing is less than the median income, then you are eligible for a Chapter 7 bankruptcy.

However, if you don’t pass the first part of the test, you will need to take the second part. In phase 2, you will document your financial transactions when it comes to allowable expenses. It includes essentials for living, such as clothes, food, medical bills, and mortgage or rent.

Then your discretionary income will be inspected, which includes the money you spend on non-essentials that can be used to settle your outstanding debts. This is where your financial records will really be investigated to determine if your spending is excessive. But if your disposable income is deemed low enough to be eligible for Chapter 7, you can move on to filing a Chapter 7.

Aside from the aforementioned eligibility requirements, you also need to make sure that you did not have a prior bankruptcy case that you deliberately dismissed within the last 180 days. If this is the case, you have to wait for the time limit to lapse before you can file another Chapter 7.


Filing for bankruptcy has quite a reputation. Some people think that it’s an easy way out of all their debts. But it does not just eliminate your debt. There’s a trade-off—most debts will be eliminated, but some of your property will be liquidated, and the money from that is what your bankruptcy trustee uses to pay off your creditors.

At first glance, it’s easy to assume that filing bankruptcy in Centennial will cause you to lose everything so that enough money can be liquidated to settle your debts. But the system is not that cruel. In fact, there are many exemptions and considerations in place to protect you and your assets. You can either choose to claim federal exemptions or state exemptions though you should talk to an experienced bankruptcy attorney for advice before making your selection. The amount and value that is allowed to be exempt periodically changes to adjust for inflation and other factors. Both federal and state laws allow for exemptions of a variety of types of property including, but not limited to:

  • Homestead or equity in primary place of residence
  • Household goods and furnishings, animals, appliances, books, clothing, crops
  • Motor vehicles
  • Personal injury recovery
  • Wildcard exemption that can be applied to any type of property
  • Income received within 60 days before filing
  • Jewelry
  • Tools for trade
  • Collectibles


Bankruptcy is meant to become a means to help you move forward with your life financially. By filing a Chapter 7 bankruptcy and getting a discharge, you have a clean slate where you can restructure and rebuild your finances. It is not the end of your ability to get credit. A good attorney on your side can make this process much easier and help you start fresh.

You will still be able to get credit after filing for bankruptcy and getting a discharge. Some people can do it immediately after their discharge, but it can take longer for others. Most bankruptcy clients in Centennial are able to get credit and purchase a new house or new car a few years after their discharge.

It won’t be instantaneous, but you will be able to recover and get credit again. It may take a few weeks or months for your credit reports to reflect that your debts have been discharged. But afterward, you have a clean, fresh opportunity to start over with better financial management.

It’s advisable, though, to be more careful and diligent with your credit after bankruptcy. Only take out the credit you can afford and pay your debts completely and on time.


People are often second-guessing whether or not they should file for bankruptcy. Admittedly, it’s a scary option, with many legal procedures involved. So they opt to try debt settlement first and consider filing Chapter 7 as a last resort.

Debt settlement is the process of negotiating with your creditors and asking them to allow you to pay off your debt in a lump sum that is less than the total amount of your debt. For example, if you have a loan that’s worth $50,000 through debt settlement, you are negotiating with your creditor to accept full payment of the money that you have and are able to pay, which is less than the total debt.

It might seem easier, quicker, and less costly, especially when considering the additional expenses such as attorney fees and filing fees required during a bankruptcy case in Centennial, CO. But we don’t recommend our clients try debt relief options or settlement before filing for bankruptcy. This has its own hidden risks that can end up harming you and your credit. It’s not a legal process, and the success rate is not very high. Consider getting in touch with a bankruptcy attorney from Burnham Law before making a decision. If you are experiencing creditor harassment, our attorneys can also help you pursue creditors who violate Fair Debt Collection laws.


Bankruptcy cases are not all the same. Some may take longer than others because of complications in financial records, the types of assets to be liquidated, etc. Your case might have unique situations that require more time to resolve. But on average, the entire process of filing for Chapter 7 can be completed in four to six months with the help of an attorney.

It begins with you filing your case in Centennial by giving the court a bankruptcy petition either yourself or through an attorney where your debts, assets, and information about your creditors are listed. After filing, you will be assigned a trustee who will take charge of the liquidation. Your trustee will set a meeting with you to verify and compile all your financial records.

If the process goes smoothly, a Chapter 7 bankruptcy can be completed in a few months. But should there be any issue, such as when your creditors object or if your trustee needs more information about your financial records, then the process could be delayed. A bankruptcy attorney can help you with every step of the process.


Remember, your assets will be liquidated to settle your debts when you file a Chapter 7. So perhaps the biggest fear that people have about bankruptcy filings is losing their homes. You spent a whole lot of time, effort, and resources to finally buy that home for you and your family. And you don’t want to risk losing it.

However, there is not much to fear, as filing for bankruptcy does not automatically mean that you will lose your house. This is one of the assets that you can protect and exempt, thanks to the homestead exemption. In Centennial, Colorado, you have the capacity to exempt up to $250,000 of equity in your home—as long as it’s what you use as a primary residence. If you, your spouse, or dependents are 60 years old and above, you can exempt up to $350,000.

If your primary concern is protecting your home, our bankruptcy lawyers can help make sure of it. Contact a Burnham Law attorney to learn more about the Chapter 7 bankruptcy process, what it means for your properties and assets, including real estate, and how you can protect them.


Considering that all your financial records and debts have been laid out for your trustee and the court, many people become concerned about how they move on financially after a Chapter 7 discharge. They fear that the money they make after the completion of their bankruptcy case can be taken by the court to settle the discrepancies in their past debt. But this is not true.

After your discharge, your bankruptcy case is closed. Any money you make after your Chapter 7 is discharged remains yours and will no longer be taken by your trustee or the court. You have the freedom to move on and make money as you please.

But there is one exception—if you receive money from the estate of a deceased within 6 months after filing. This money might be considered as part of the bankruptcy estate if you received it within 180 days following the date you filed for bankruptcy. So if this happens, you should tell your Centennial bankruptcy lawyer or your trustee about it.


Our philosophy is to protect our clients, their families, and their assets through adversity. We understand how burdening your debt can be, and we know that you might have fears or reservations about filing for bankruptcy, especially if you don’t know about the whole process and what to expect. Unlike other attorneys, we will work closely with you to solve your legal issues and provide honest answers to all your questions during the process.

Our bankruptcy lawyers here at Burnham Law are backed by the experience, expertise, and knowledge needed to help you navigate your case. With our shared philosophy and dedication to helping you move on and recover financially, we can be your partner through this overwhelming endeavor. Set up a free consultation with an attorney experienced in Colorado bankruptcy law to get the help and legal advice you need.

Bankruptcy is not the end of your reputation or your life. Instead, it’s a window of opportunity that helps pave the way to a fresh start. By hiring a Burnham Law bankruptcy lawyer in Centennial, you can be sure that your assets will be protected, and you will come out of this difficult situation with a changed life and a clean financial slate.