Evans, CO Bankruptcy Law Firms & Lawyers

You should check your bankruptcy petition to determine whether the creditor was listed on the schedules and properly served with notice of your bankruptcy filing.

I would advise against selling your residence until the bankruptcy case is closed. The reason you have the right to your house is that it qualifies for the "homestead" exemption. If you sell it, then it ceases to be a homestead and just becomes cash. There are arguments both ways and possibly the trustee won't get involved but if the trustee decides to sue you for turnover of the money, you'll be tied up in court for at least a couple months and possibly for years and will incur thousands in legal expenses. Unless there is some complication, usually bankruptcy cases are closed within a few weeks of issuing the discharge.

Filing for bankruptcy will put a complete stop to all unsecured creditors' (like credit cards) attempts to collect from you. Upon being granted a Chapter 7 discharge from the Bankruptcy Court your obligation to pay on discharged debts will be gone. A Chapter 13 bankruptcy will probably reduce your debt and will put you on a manageable payment plan. Depending upon your specific situation, bankruptcy may be a good option for you. You should consult with a bankruptcy attorney to determine if it is right for you.