Bankruptcy Law Denver http://bankruptcylawdenver.net The Law Offices of Andrew F. McKenna, P.C. Tue, 21 Feb 2017 21:17:33 +0000 en-US hourly 1 https://wordpress.org/?v=4.4.11 Financial Advice to Consider Prior to Filing for Divorce (Part 2) http://bankruptcylawdenver.net/financial-advice-to-consider-prior-to-filing-for-divorce-part-2/ Tue, 16 Jul 2013 01:18:37 +0000 http://bankruptcylawdenver.net/?p=229 Continuing from Financial Advice to Consider Prior to Filing for Divorce (Part 1), here are some additional financial matters that will be essential for couples to deal with before they official file for divorce. By taking these steps, each individual involved in the divorce can save themselves thousands of dollars in attorneys’ fees while also avoiding […]

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Some of the things couples can do to get their finances organized before filing for divorce include closing joint accounts and opening up accounts in their name only.

Some of the things couples can do to get their finances organized before filing for divorce include closing joint accounts and opening up accounts in their name only.

Continuing from Financial Advice to Consider Prior to Filing for Divorce (Part 1), here are some additional financial matters that will be essential for couples to deal with before they official file for divorce. By taking these steps, each individual involved in the divorce can save themselves thousands of dollars in attorneys’ fees while also avoiding some of the emotional stresses that are generally associated with divorce.

  • Get accounts that are in your name only – While this will involve closing all joint accounts possible, it will also require you to open up new accounts that are only in your name. Some of the important accounts that this process will involve include bank accounts, credit card accounts, etc. By closing all possible joint accounts prior to filing for divorce, you can protect yourself from the possible situation of having your soon-to-be-ex-partner drain your bank account and/or run up charges on credit cards if the divorce proceedings start to become contentious.
  • Figure out how the marital debt will be paid off – Any debt that you and your spouse acquired while married will have to still be paid off, and creditors can go after both you and your partner for such debt even after you are divorced. If possible, try to work out a payment plan with your partner that will get this shared debt paid off as quickly as possible. It will also be important to close accounts on which there is shared debt so that your partner will not be able to add additional charges/accrue more debt that you will still be legally responsible for.

Colorado Bankruptcy Lawyers

If you are struggling with debt and are looking for a financial fresh start, contact the trusted Colorado bankruptcy lawyers at The Law Office of Andrew McKenna. For more than 20 years, we have been successfully overseeing our Clients’ bankruptcy cases so they can resolve their financial issues as beneficially as possible. Our comprehensive legal knowledge coupled with our vast experience allows us to consistently and efficiently help our Clients achieve the best possible resolutions to their financial matters. For an evaluation of your case and expert advice regarding how to move forward, call us at (719) 201-4527.

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Financial Advice to Consider Prior to Filing for Divorce (Part 1) http://bankruptcylawdenver.net/financial-advice-to-consider-prior-to-filing-for-divorce-part-1/ Thu, 11 Jul 2013 01:17:32 +0000 http://bankruptcylawdenver.net/?p=226 While divorce is generally an emotionally stressful time for any couple, it can also create an incredible stress on couple’s finances. In fact, divorce is one of the primary factors that causes many Americans to be plummeted into serious debt, and it is one of the top reasons that many Americans ultimately find themselves needing […]

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Couples who takes steps to get their finances in order prior to filing for divorce can save themselves thousands of dollars.

Couples who takes steps to get their finances in order prior to filing for divorce can save themselves thousands of dollars.

While divorce is generally an emotionally stressful time for any couple, it can also create an incredible stress on couple’s finances. In fact, divorce is one of the primary factors that causes many Americans to be plummeted into serious debt, and it is one of the top reasons that many Americans ultimately find themselves needing to file for bankruptcy. This is because, while divorce itself can be an expensive process, it can also leave individuals burdened with their ex-spouse’s debts, which can damage their credit score and weigh them down with old financial obligations for years to come.

However, if divorcing couples take the time to get their finances in order prior to filing for divorce, they may be able to save themselves from having to suffer incredible stress and from having to pay thousands of dollars down the line. Some of the things that divorcing couples can do to get their finances organized prior to filing for divorce include the following:

  • Compile all necessary financial documents – While a divorce lawyer can gather all of your financial documents, these attorneys can charge you hundreds of dollars per hour for something that you can likely do yourself. Some of the relevant financial documents that will be important to compile will include mortgage and loan agreements, pay stubs, tax documents, deeds or titles to property, bank account and credit card statements, insurance policy documents, etc. These documents will later be used during divorce proceedings to establish the couple’s assets, debts and each party’s income.
  • Have appraisals done on all marital assets – Having a professional estimate of the value of your home(s), car(s), jewelry, artwork and other assets will save you large amounts of money in divorce attorneys’ fees. Additionally, it can also help divorce proceedings progress more quickly, as this discovery work will already be done, allowing the family court judge to focus on the division of assets sooner than would otherwise be possible.

Colorado Bankruptcy Lawyers

If you are struggling with debt and are looking for a financial fresh start, contact the trusted Colorado bankruptcy lawyers at The Law Office of Andrew McKenna. For more than 20 years, we have been successfully overseeing our Clients’ bankruptcy cases so they can resolve their financial issues as beneficially as possible. Our comprehensive legal knowledge coupled with our vast experience allows us to consistently and efficiently help our Clients achieve the best possible resolutions to their financial matters. For an evaluation of your case and expert advice regarding how to move forward, call us at (719) 201-4527.

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An Overview of Colorado Bankruptcy Exemptions (Part 2) http://bankruptcylawdenver.net/an-overview-of-colorado-bankruptcy-exemptions-part-2/ Tue, 09 Jul 2013 01:16:12 +0000 http://bankruptcylawdenver.net/?p=223 Picking up from An Overview of Colorado Bankruptcy Exemptions (Part 1), here are some additional bankruptcy exemptions that debtors who file from bankruptcy can use in order to keep some of their assets and property. When spouses file for bankruptcy together (i.e., jointly file for bankruptcy), they can effectively double these exemptions because each spouse will be allowed […]

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Colorado bankruptcy exemptions determine what assets debtors can keep when they file for Chapter 7 or Chapter 13 bankruptcy in Colorado.

Colorado bankruptcy exemptions determine what assets debtors can keep when they file for Chapter 7 or Chapter 13 bankruptcy in Colorado.

Picking up from An Overview of Colorado Bankruptcy Exemptions (Part 1), here are some additional bankruptcy exemptions that debtors who file from bankruptcy can use in order to keep some of their assets and property. When spouses file for bankruptcy together (i.e., jointly file for bankruptcy), they can effectively double these exemptions because each spouse will be allowed to claim up to the maximum amount of the exemption for a particular asset.

  • Personal property – These assets can include clothes, jewelry, household appliances, etc. For household goods and clothing, bankruptcy petitioners can claim up to $3,000 and $1,500 respectively, in bankruptcy exemptions. Colorado laws also allow for up to $2,000 in jewelry exemptions and up to $50,000 in livestock exemptions.
  • Pensions, Insurance benefits and other benefits – Pensions, group life insurance policies (and life insurance proceeds), workers’ compensation benefits, veterans’ benefits and unemployment benefits will all be 100 percent exemption from a bankruptcy case unless a debtor has an unpaid child support claim filed against him. Additionally, up to $200 per month from disability insurance also qualifies as a bankruptcy exemption.
  • Tools of the trade – Debtors can claim up to $20,000 in work-related tools as being exempt from bankruptcy proceedings.
  • Compensation for criminal behavior – Also referred to as restitution payments, the entire sum of these payments will qualify as a bankruptcy exemption.
  • Burial sites – Debtors can claim one burial site for themselves and one for each dependent as bankruptcy exemptions.

Because the laws governing Colorado bankruptcy exemptions are regularly changed, debtors should not attempt to file for bankruptcy without the help of an experienced attorney, as they could be missing out on some key exemptions that would allow them to keep as much of their assets as possible.

Colorado Bankruptcy Lawyers

If you are struggling with debt and are looking for a financial fresh start, contact the trusted Colorado bankruptcy lawyers at The Law Office of Andrew McKenna. For more than 20 years, we have been successfully overseeing our Clients’ bankruptcy cases so they can resolve their financial issues as beneficially as possible. Our comprehensive legal knowledge coupled with our vast experience allows us to consistently and efficiently help our Clients achieve the best possible resolutions to their financial matters. For an evaluation of your case and expert advice regarding how to move forward, call us at (719) 201-4527.

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An Overview of Colorado Bankruptcy Exemptions (Part 1) http://bankruptcylawdenver.net/an-overview-of-colorado-bankruptcy-exemptions-part-1/ Sat, 06 Jul 2013 01:13:49 +0000 http://bankruptcylawdenver.net/?p=220 Bankruptcy exemptions dictate what property and assets debtors will be allowed to keep because these assets will not have to be included in the bankruptcy estate (and, therefore, will not have to be used to pay off creditors). Although some states will allow debtors to choose between using state or federal codes when it comes […]

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Colorado bankruptcy exemptions set the maximum values for homesteads, motor vehicles and other assets that debtors can keep when filing for bankruptcy.

Colorado bankruptcy exemptions set the maximum values for homesteads, motor vehicles and other assets that debtors can keep when filing for bankruptcy.

Bankruptcy exemptions dictate what property and assets debtors will be allowed to keep because these assets will not have to be included in the bankruptcy estate (and, therefore, will not have to be used to pay off creditors). Although some states will allow debtors to choose between using state or federal codes when it comes to bankruptcy exemptions, according to Colorado laws, everyone who files forChapter 7 or Chapter 13 bankruptcy in the state must use state statutes. While the laws covering Colorado bankruptcy exemptions are regularly updated, the following reflects these exemptions (and the allowable maximum values of them) per current Colorado laws:

  • Homestead or residential property – A debtor can claim up to $60,000 in equity of his home as being exempt from bankruptcy. If the debtor has a spouse or dependent who is elderly (older than 60 years old) and/or who is disabled, he can legally claim up to $90,000 in homestead bankruptcy exemptions.
  • Income – If a bankruptcy petitioner has a job and is earning an income, up to 75 percent of his earnings or up to 30 times the minimum weekly wage can be exempt from bankruptcy estates.
  • Motor vehicles – Debtors can claim up to $5,000 for one or more motor vehicles as a bankruptcy exemption. If the debtor is elderly or disabled or has an elderly or disabled spouse or dependent, up to $10,000 in motor vehicles can be exempt.

It’s important to note that spouses who are jointly filing for bankruptcy can effectively double these exemptions, as the husband and the wife will be allowed to claim up to the maximum value for each of these bankruptcy exemptions (a practice that may be referred to as “doubling” exemptions).

Colorado Bankruptcy Lawyers

If you are struggling with debt and are looking for a financial fresh start, contact the trusted Colorado bankruptcy lawyers at The Law Office of Andrew McKenna. For more than 20 years, we have been successfully overseeing our Clients’ bankruptcy cases so they can resolve their financial issues as beneficially as possible. Our comprehensive legal knowledge coupled with our vast experience and our dedication to our clients allows us to consistently and efficiently help our Clients achieve the best possible resolutions to their financial matters. For an evaluation of your case and expert advice regarding how to move forward, call us at (719) 201-4527.

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After Bankruptcy: Tips on Financially Recovering http://bankruptcylawdenver.net/after-bankruptcy-tips-on-financially-recovering/ Tue, 18 Jun 2013 00:56:09 +0000 http://bankruptcylawdenver.net/?p=209 While bankruptcy is a good option for many borrowers who find themselves overwhelmed by debt, it’s important that individuals who file for bankruptcy understand that they will still have some work to do after their bankruptcy case has been approved in order to get their finances back on track. In fact, with some diligent effort […]

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After bankruptcy, borrowers can start slowly recovering financially by focusing on paying down their remaining debts and boosting their credit ratings.

While bankruptcy is a good option for many borrowers who find themselves overwhelmed by debt, it’s important that individuals who file for bankruptcy understand that they will still have some work to do after their bankruptcy case has been approved in order to get their finances back on track. In fact, with some diligent effort and consistent work, individuals who have filed for bankruptcy can begin to rebuild their credit and may be eligible to open up new lines of credit in as little as a year from their bankruptcy filing.

Here are some tips on what borrowers can do to start financially recovering after filing for bankruptcy:

  • Pay down (or off) any debt not discharged by bankruptcy – While Chapter 7 bankruptcy will discharge many of a borrower’s debts, some debt – like student loans – will not be discharged by bankruptcy. For borrowers who still have debt remaining after bankruptcy, it’s important to focus on paying down this debt so that it doesn’t come back to haunt them with huge interest rates in the future.
  • Develop and stick to a budget – After bankruptcy, borrowers should have a clear understanding of what they earn versus what they spend on a monthly basis; using this information, they can create a budget that helps them live within their means and prevents them from accumulating additional debt that may necessitate a future bankruptcy filing.
  • Focus on raising your credit score – The best way to do this is to have one (or maybe two) credit cards that do not carry a balance on them month to month (or, in other words, that borrowers are paying off on a monthly basis). Although getting a new credit card after bankruptcy will likely involve high interest rates or having to front some collateral to secure the line of credit, borrowers who prove that they can pay off their credit card balances every month will soon be eligible for better offers on cheaper lines of credit.

If you are struggling with debt and are looking for a financial fresh start, contact the trusted Colorado bankruptcy lawyers at The Law Office of Andrew McKenna. For more than 20 years, we have been successfully overseeing our Clients’ bankruptcy cases so they can resolve their financial issues as beneficially as possible. Our comprehensive legal knowledge coupled with our vast experience allows us to consistently and efficiently help our Clients achieve the best possible resolutions to their financial matters. For an evaluation of your case and expert advice regarding how to move forward, call us at (719) 201-4527.

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Debtors’ Rights and the FDCPA (Part 2) http://bankruptcylawdenver.net/debtors-rights-and-the-fdcpa-part-2/ Wed, 12 Jun 2013 22:21:06 +0000 http://bankruptcylawdenver.net/?p=172 As a continuation of Debtors’ Rights and the FDCPA (Part 1), the following is some additional information regarding debtors’ rights that are laid out in the Fair Debt Collections Practices Act. While Part 1 of this blog outlined the legally required practices that creditors must abide by when interacting with borrowers regarding a debt, Part […]

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According to the FDCPA, creditors are not legally allowed to use profane language or call borrowers before 8am when trying to collect a debt from a borrower.

According to the FDCPA, creditors are not legally allowed to use profane language or call borrowers before 8am when trying to collect a debt from a borrower.

As a continuation of Debtors’ Rights and the FDCPA (Part 1), the following is some additional information regarding debtors’ rights that are laid out in the Fair Debt Collections Practices Act. While Part 1 of this blog outlined the legally required practices that creditors must abide by when interacting with borrowers regarding a debt, Part 2 will lay out what creditors are legally not permitted to do in an effort to collect debt. Should creditors violate the FDCPA in any way, they can be sued by a borrower and ultimately be ordered to pay a borrower up to $1,000 in restitution (along with any reasonable attorney fees the borrower has accumulated as a result of the lawsuit).

Legally Prohibited Practices for Creditors

Among the legally prohibited practices that creditors are forbidden from performing when trying to collect a debt include (but are not limited to):

  • Calling borrowers before 8am or after 9pm in the borrowers’ local time zone
  • Repeatedly or incessantly calling borrowers with the intention of trying to harass or bother them
  • Continuing to try to contact borrowers after borrowers have notified creditors in writing that they are refusing to pay the debt in question
  • Contacting borrowers at work after borrowers have informed creditors that this should not be done
  • Continuing to try to directly contact borrowers when creditors have been informed that borrowers have an attorney representing them (as all communications should go through the attorney)
  • Lying in any way about the nature of the debt or the creditor’s identify (for example, by stating that more is owed on the debt than is actually owed or by misrepresenting a creditor as a lawyer or a law enforcement official) 

If you are struggling with debt and are looking for a financial fresh start, contact the trusted Colorado bankruptcy lawyers at The Law Office of Andrew McKenna. For more than 20 years, we have been successfully overseeing our Clients’ bankruptcy cases so they can resolve their financial issues as beneficially as possible. Our comprehensive legal knowledge coupled with our vast experience allows us to consistently and efficiently help our Clients achieve the best possible resolutions to their financial matters. For an evaluation of your case and expert advice regarding how to move forward, call us at (719) 201-4527.

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Debtors’ Rights and the FDCPA (Part 1) http://bankruptcylawdenver.net/debtors-rights-and-the-fdcpa-part-1/ Thu, 06 Jun 2013 15:30:49 +0000 http://bankruptcylawdenver.net/?p=152 Borrowers who may find themselves drowning in debt and fending off their creditors should know that Fair Debt Collections Practices Act (FDCPA) gives them specific rights in order to prevent them from being the targets of potentially abusive behaviors at the hands of creditors. In fact, while the FDCPA was first enacted in 1977 to […]

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The debtors’ rights laid out in the Fair Debt Collections Practices Act are intended to protect borrowers from potentially abusive creditors.

The debtors’ rights laid out in the Fair Debt Collections Practices Act are intended to protect borrowers from potentially abusive creditors.

Borrowers who may find themselves drowning in debt and fending off their creditors should know that Fair Debt Collections Practices Act (FDCPA) gives them specific rights in order to prevent them from being the targets of potentially abusive behaviors at the hands of creditors. In fact, while the FDCPA was first enacted in 1977 to foster fair debt collection practices, it has been updated a number of times over the years in order to establish debtors’ rights and give them recourse for keeping creditors in line. It’s important to note that the FDCPA only covers personal debt (i.e., debt related to an individual’s, family’s or household’s financial transactions) and not business-related debt.

By taking the time to get familiar with the debtors’ rights laid out by the FDCPA, borrowers can make sure that they are not being abused by creditors and that, if creditors are acting illegally, they can report these creditors to the proper authorities.

Required Practices for Creditors

Part of the FDCPA stipulates what creditors are legally obligated to do when they are interacting with borrowers regarding a particular debt. Specific required practices for creditors, according to the FDCPA, include (but are not limited to):

  • Clearly establishing that they are in every communication they have with a borrower
  • Providing their exact name and address (or the name and address of the creditor if a third-party debt collection agency is contacting the borrower on behalf of the creditor)
  • Clearly explain to the borrower that he has the right to dispute the debt in question
  • Send the borrower verification of the debt within 30 days of receiving a written request from the borrower (A creditor’s failure to send this verification means that the company must cease and desist from its debt collection efforts going forward.)

If you are struggling with debt and are looking for a financial fresh start, contact the trusted Colorado bankruptcy lawyers at The Law Office of Andrew McKenna. For more than 20 years, we have been successfully overseeing our Clients’ bankruptcy cases so they can resolve their financial issues as beneficially as possible. Our comprehensive legal knowledge coupled with our vast experience allows us to consistently and efficiently help our Clients achieve the best possible resolutions to their financial matters. For an evaluation of your case and expert advice regarding how to move forward, call us at (719) 201-4527.

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Signs of Bankruptcy Mills and Reasons to Avoid Them http://bankruptcylawdenver.net/signs-of-bankruptcy-mills-and-reasons-to-avoid-them/ Mon, 27 May 2013 16:33:05 +0000 http://bankruptcylawdenver.net/?p=145 Bankruptcy mills refer to legal organizations that heavily rely on non-attorney employees to process a large number of bankruptcy cases in as quickly as possible. While bankruptcy mills advertise heavily and typically promise consumers very low costs for processing their bankruptcy case, these companies can ultimately do far more harm than good, as: Uninformed or […]

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Bankruptcy mills are firms that offer very low rates but that also entrust your important financial matters to non-attorney staff who can botch your case.

Bankruptcy mills are firms that offer very low rates but that also entrust your important financial matters to non-attorney staff who can botch your case.

Bankruptcy mills refer to legal organizations that heavily rely on non-attorney employees to process a large number of bankruptcy cases in as quickly as possible. While bankruptcy mills advertise heavily and typically promise consumers very low costs for processing their bankruptcy case, these companies can ultimately do far more harm than good, as:

  • Uninformed or inexperienced staff handle your important financial matters.
  • Excessive caseloads for such staff increase the chances that they will not file court documents on time, not be prepared to show up to court for your case, will fail to contact your creditors or will otherwise botch an element of your case.
  • With little oversight from licensed bankruptcy lawyers, it’s far more likely that staff will handle bankruptcy cases unethically just to try to close them quickly.
  • Such practices ultimately increase the chances that your case will be denied by bankruptcy courts and that, in the process, you will spiral even further into debt.

Some common indicators that a firm may be a bankruptcy mill that you should avoid include the following:

  • A bankruptcy lawyer is not present in your first meeting about your case.
  • The firm has a history of being admonished by the court.
  • Paperwork for your case has not been completed properly and/or has not been filed with the courts by the necessary deadlines.
  • The firm’s rates are excessively lower than rates of other bankruptcy firms (With bankruptcy, the old adage – you get what you pay for – rings true, and looking to cut corners or save a quick buck can ultimately cost debtors far more in the long run).

If you are struggling with debt and are looking for a financial fresh start, contact the trusted Colorado bankruptcy lawyers at The Law Office of Andrew McKenna. For more than 20 years, we have been successfully overseeing our Clients’ bankruptcy cases so they can resolve their financial issues as beneficially as possible. Our comprehensive legal knowledge coupled with our vast experience allows us to consistently and efficiently help our Clients achieve the best possible resolutions to their financial matters. For an evaluation of your case and expert advice regarding how to move forward, call us at (719) 201-4527.

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Tips on Repairing Your Credit after Bankruptcy (Part 2) http://bankruptcylawdenver.net/tips-on-repairing-your-credit-after-bankruptcy-part-2/ Thu, 23 May 2013 22:04:53 +0000 http://bankruptcylawdenver.net/?p=141 As a continuation of Tips on Repairing Your Credit after Bankruptcy (Part 1), the following are some additional tips that can help borrowers who have recently filed for bankruptcy slowly repair their credit and get back on their feet financially. Consider taking out one credit card – Although this can be a risky tip (especially […]

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Borrowers who are focused on repairing their credit after bankruptcy can do so by following these tips that will help them slowly rebuild their credit rating.

Borrowers who are focused on repairing their credit after bankruptcy can do so by following these tips that will help them slowly rebuild their credit rating.

As a continuation of Tips on Repairing Your Credit after Bankruptcy (Part 1), the following are some additional tips that can help borrowers who have recently filed for bankruptcy slowly repair their credit and get back on their feet financially.

  • Consider taking out one credit card – Although this can be a risky tip (especially if credit card debt was the primary factor that got a borrower into financial trouble in the first place), having a single line of credit that is regularly and diligently paid off can do wonders to helping improve borrowers’ credit ratings after bankruptcy.

    For these lines of credit, borrowers will generally have to pay a deposit and to put up with particularly high interest rates, as creditors are weary of offering deals to those who have a recent bankruptcy on their record. However, once borrowers secure such a credit card, they can slowly start to improve their credit rating (and, within months, become eligible for better credit deals) if they can prove that they are able to consistently make payments on this line of credit. Because it’s important that borrowers are able to pay off the charges on these cards in full each month (i.e., avoid carrying a balance across months), they should dedicate these cards to only paying for a discrete amount of purchases (such as weekly groceries).

  • Regularly review your credit report – At least once a year, and preferably once every six months, borrowers who have filed for bankruptcy should carefully look over their credit report to make sure there are no debts on it that should have been discharged by bankruptcy or that the borrower did not, in fact, create himself. By reviewing one’s credit report for possible discrepancies, borrowers can quickly resolve such problems, which can be critical to improving their credit after bankruptcy.

If you are struggling with debt and are looking for a financial fresh start, contact the trusted Colorado bankruptcy lawyers at The Law Office of Andrew McKenna. For more than 20 years, we have been successfully overseeing our Clients’ bankruptcy cases so they can resolve their financial issues as beneficially as possible. Our comprehensive legal knowledge coupled with our vast experience allows us to consistently and efficiently help our Clients achieve the best possible resolutions to their financial matters. For an evaluation of your case and expert advice regarding how to move forward, call us at (719) 201-4527.

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Tips on Repairing Your Credit after Bankruptcy (Part 1) http://bankruptcylawdenver.net/tips-on-repairing-your-credit-after-bankruptcy-part-1/ Mon, 20 May 2013 17:57:17 +0000 http://bankruptcylawdenver.net/?p=137 Filing for bankruptcy is a sound financial solution for those who are buried in debt and who are in need of a financial fresh start. While borrowers who want to get their bankruptcy case approved by the courts will have to do some work to prepare their bankruptcy estate, once their case has been processed, […]

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Borrowers looking to repair their credit after bankruptcy should create a strict monthly budget and focus on paying down their remaining debt.

Borrowers looking to repair their credit after bankruptcy should create a strict monthly budget and focus on paying down their remaining debt.

Filing for bankruptcy is a sound financial solution for those who are buried in debt and who are in need of a financial fresh start. While borrowers who want to get their bankruptcy case approved by the courts will have to do some work to prepare their bankruptcy estate, once their case has been processed, they will still need to be diligent about working on their finances in order to slowly rebuild their credit and to get back into a favorable financial standing.

The following are some tips on what borrowers can do after bankruptcy to rebuild their credit:

  • Create a monthly budget and stick to it – One of the first things that borrowers should after bankruptcy is to figure out how much they pay per month on necessities (like housing, electricity and food) versus how much income they have. Once these numbers have been crunched, borrowers will know how much additional income they have. While it may be enticing to spend such income on luxury or non-essential items, it’s important that borrowers use this money wisely by, for example, building up their savings accounts.

    Additionally, it’s important to note that, once borrowers have a set budget in place, they should do their best to stick to this budget. Although there may be items that borrowers desperately want to purchase, they should refrain from doing so if they cannot do so in cash, outright to avoid sliding back into a pit of debt.

  • Focus on paying down existing debt – Because bankruptcy does not discharge all of a borrower’s debt, he will still be on the hook for certain debts, such as student loan debt, child support payments or other court-ordered payments. Borrowers who still owe on such debts should focus on paying down these debts; by proving that they can make such monthly debt payments on time each month, borrowers will slowly begin to build their credit back up.

If you are struggling with debt and are looking for a financial fresh start, contact the trusted Colorado bankruptcy lawyers at The Law Office of Andrew McKenna. For more than 20 years, we have been successfully overseeing our Clients’ bankruptcy cases so they can resolve their financial issues as beneficially as possible. Our comprehensive legal knowledge coupled with our vast experience allows us to consistently and efficiently help our Clients achieve the best possible resolutions to their financial matters. For an evaluation of your case and expert advice regarding how to move forward, call us at (719) 201-4527.

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