What will happen to my creditors if I file for bankruptcy?

If you file for bankruptcy in Colorado, your creditors will not be able to pursue you for repayment of the money they are owed. When you file for bankruptcy, an automatic stay is put in place. This means that your creditors cannot attempt to collect the debt for the duration of the bankruptcy. The stay will remain in effect until the case is discharged or dismissed. In some cases, you may be able to negotiate with your creditors so that you can pay them something. This is known as a debt repayment plan and may allow you to pay off some of your debt. If you file for Chapter 7 bankruptcy, most of your unsecured debts (such as credit card debt) will be discharged and you will no longer have to pay them back. However, secured debts, such as mortgages or car loans, will not be discharged. You will still be responsible for repaying these debts. If you file for Chapter 13 bankruptcy, you may be able to repay some of your debts over a three to five-year period. This means that you will make monthly payments to your creditors, and when the repayment plan is complete, any remaining debt will be discharged. No matter which type of bankruptcy you file, your creditors will not be able to pursue you for repayment. They may be able to take legal action against you if you fail to make your payments, but the bankruptcy will still provide some protection.

Related FAQs

What type of information will I need to provide to my attorney before filing for bankruptcy?
How do I obtain a copy of my credit report after filing for bankruptcy?
Can I discharge student loan debt through bankruptcy?
How do I change my name after filing for bankruptcy?
Will bankruptcy discharge the entire amount of debt owed?
How does filing for bankruptcy affect my retirement benefits?
Which debts cannot be discharged in bankruptcy?
What are the consequences of filing for bankruptcy?
How much does it cost to file for bankruptcy?
How long does the bankruptcy process take?

What will happen to my creditors if I file for bankruptcy?

Related FAQs

Related Blog Posts