Chapter 7 Bankruptcy Impact

Summary

Chapter 7 bankruptcy can impact married couples through joint or individual filings. Joint filing includes both spouses debts and assets, while individual filing considers only the filing spouses debts and assets, though the non-filing spouses income may affect the means test. The means test compares your income to Colorados median income of approximately $79,000 to determine eligibility. If filing individually, your spouses income can still influence the means test. For car loans, options include reaffirmation, redemption, or surrender. Reaffirmation involves signing an agreement to continue payments, possibly requiring court approval. Consulting a bankruptcy attorney is advisable for proper handling.

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how does chapter * bankrupcy affect a married couple
Chapter * bankruptcy can affect a married couple in several ways:
- Joint Filing: Both spouses' debts and assets are included.
- Individual Filing: Only the filing spouse's debts and assets are considered, but the non-filing spouse's income may still impact the means test.
- Property: Colorado has specific exemptions for protecting property.
Are you considering filing jointly or individually?
what is the means test
The means test determines if you qualify for Chapter * bankruptcy. It compares your average monthly income over six months to Colorado's median income. If your income is below the median, you pass. If it's above, further calculations determine disposable income available to pay debts.
Are you considering filing jointly or individually?
what is colorados median income
Colorado's median income for a household is approximately $*,* as of recent data.
Are you considering filing jointly or individually for the Chapter * bankruptcy?
individually
Filing individually for Chapter * bankruptcy means only your debts and assets are considered, but your spouse’s income can affect the means test.
- Ensure your income over the last six months is below Colorado's median income of around $*,*.
- You may need to complete additional calculations if your income is above the median.
Do you have any specific concerns about your assets or debts?
car loan
If you're filing individually for Chapter * bankruptcy in Colorado and you have a car loan, here are some key points:
- Reaffirmation: You may keep the car by reaffirming the loan, continuing payments.
- Redemption: Pay the car's current value in a lump sum.
- Surrender: Return the car, and debt is discharged.
Do you want to keep the car or surrender it?
reaffirmation ideally
If you want to reaffirm your car loan, here are the key points:
- Reaffirmation Agreement: You must sign a reaffirmation agreement with your lender, agreeing to continue making payments.
- Court Approval: This agreement may need court approval, especially if your budget shows you can't afford payments.
- Legal Advice: It is advisable to consult a bankruptcy attorney to ensure your reaffirmation is handled correctly.
Do you have any other concerns or questions about the reaffirmation process?
thank you
You're welcome! It sounds like you have a good understanding of the reaffirmation process for your car loan in a Chapter * bankruptcy. If you have any other questions or concerns about the process or anything else related to your bankruptcy, feel free to ask!