844-TIRADO-1
844-847-2361
sam@tiradolawoffice.com
TIRADO LAW OFFICE, LLC
Championing Justice, Fighting For You!
Chapter 7 Bankruptcy— Colorado & Kansas
What is Chapter 7 bankruptcy?
Chapter 7 is often called a “fresh start” bankruptcy. It allows individuals to eliminate (or “discharge”) most unsecured debts such as credit cards, medical bills, personal loans, and old utility balances while keeping exempt property like your home, car, and household goods.
Who qualifies for Chapter 7?
Eligibility depends primarily on your household income.
- If your income is below your state’s median for your family size, you generally qualify automatically.
- If your income is above the median, you may still qualify after completing the means test, which factors in your necessary living expenses (housing, transportation, childcare, taxes, etc.).
What debts can Chapter 7 eliminate?
Chapter 7 can wipe out:
- Credit cards and personal loans
- Medical bills and collections
- Deficiency balances after car repossession or foreclosure
- Old lease obligations and payday loans
Certain debts cannot be discharged, including:
- Recent taxes, child support, and alimony
- Most student loans (unless hardship is proven in an adversarial proceeding)
- Debts incurred through fraud or willful injury
Will I lose my home or car?
Most clients keep their homes and vehicles if they’re current on payments and protected by exemptions.
- Colorado exemptions: Up to $250,000 ($350,000 if elderly/disabled) in home equity; $15,000 vehicle equity.
- Kansas exemptions: Unlimited homestead exemption (up to 1 acre in town / 160 acres rural); $20,000 vehicle exemption.
What happens to creditor calls and lawsuits?
As soon as your case is filed, the automatic stay takes effect — stopping all collection calls, garnishments, repossessions, and lawsuits immediately. Creditors must deal with your attorney, not you.
How long does Chapter 7 take?
A typical Chapter 7 case takes about 3 to 4 months from filing to discharge. You’ll attend one brief 341 Meeting of Creditors (usually virtual or by phone).
How will this affect my credit?
The bankruptcy stays on your credit report for up to 10 years, but many clients receive new credit offers within months and can rebuild their scores within 1 to 2 years. You also qualify for an FHA mortgage loan two years after discharge.
What happens at the 341 Meeting of Creditors?
This is a short, non-adversarial meeting with the trustee (not a judge). You’ll answer basic questions under oath about your petition, income, and property. Most meetings last about 5 minutes.
Can I file Chapter 7 again?
Yes — if it’s been 8 years since your last Chapter 7 discharge or 6 years since a Chapter 13 discharge.
When might Chapter 13 be a better option?
- Are behind on your mortgage or car payments and want to keep the property
- Have non-exempt assets you’d lose in Chapter 7
- Earn too much to qualify for Chapter 7
- Need to repay tax or domestic support obligations
¿Qué es la bancarrota del Capítulo 7?
El Capítulo 7 se conoce como una bancarrota de “nuevo comienzo”. Permite a las personas eliminar (o “descargar”) la mayoría de las deudas no garantizadas, como tarjetas de crédito, facturas médicas, préstamos personales y saldos de servicios antiguos, mientras conservan bienes exentos como su casa, auto y artículos del hogar.
¿Quién califica para el Capítulo 7?
La elegibilidad depende principalmente de los ingresos del hogar.
- Si sus ingresos están por debajo del promedio estatal para su tamaño de familia, califica automáticamente.
- Si sus ingresos están por encima del promedio, aún puede calificar después de completar la prueba de medios, que considera sus gastos necesarios (vivienda, transporte, cuidado infantil, impuestos, etc.).
¿Qué deudas puede eliminar el Capítulo 7?
El Capítulo 7 puede eliminar:
- Tarjetas de crédito y préstamos personales
- Facturas médicas y cobranzas
- Saldos después de la recuperación de un auto o ejecución hipotecaria
- Deudas de alquiler antiguas y préstamos de día de pago
Ciertas deudas no pueden eliminarse, incluidas:
- Impuestos recientes, manutención infantil y pensión alimenticia
- Préstamos estudiantiles (a menos que se pruebe dificultad en un procedimiento separado)
- Deudas incurridas por fraude o daño intencional
¿Perderé mi casa o auto?
La mayoría de los clientes conservan sus hogares y vehículos si están al día con los pagos y protegidos por exenciones.
- Exenciones en Colorado: Hasta $250,000 ($350,000 si es mayor o discapacitado) en equidad de vivienda; $15,000 en equidad de vehículo.
- Exenciones en Kansas: Exención ilimitada de vivienda (hasta 1 acre en ciudad / 160 acres rurales); $20,000 de exención de vehículo.
¿Qué pasa con las llamadas y demandas de acreedores?
Tan pronto como se presenta su caso, entra en vigor la suspensión automática, deteniendo todas las llamadas, embargos, recuperaciones y demandas. Los acreedores deben comunicarse con su abogado, no con usted.
¿Cuánto tiempo toma el Capítulo 7?
Un caso típico toma de 3 a 4 meses desde la presentación hasta la eliminación de la deuda. Asistirá a una breve reunión 341 (por lo general virtual o telefónica).
¿Cómo afectará esto mi crédito?
La bancarrota permanece en su historial crediticio hasta por 10 años, pero muchos clientes reciben nuevas ofertas de crédito en pocos meses y pueden reconstruir su puntaje en 1 a 2 años. También puede calificar para un préstamo FHA dos años después de la descarga.
¿Qué sucede en la reunión 341 de acreedores?
Es una reunión breve y no adversarial con el síndico (no un juez). Responderá preguntas básicas bajo juramento sobre su petición, ingresos y bienes. La mayoría duran unos 5 minutos.
¿Puedo presentar el Capítulo 7 nuevamente?
Sí — si han pasado 8 años desde su última bancarrota del Capítulo 7 o 6 años desde una del Capítulo 13.
¿Cuándo es mejor el Capítulo 13?
- Si está atrasado en pagos de hipoteca o auto y desea conservar la propiedad
- Si tiene bienes no exentos que perdería en el Capítulo 7
- Si gana demasiado para calificar para el Capítulo 7
- Si necesita pagar impuestos o deudas de manutención
Why Choose Tirado Law Office?
Compassionate Representation From Someone Who Understands
When you’re facing financial stress, the attorney you choose matters. At Tirado Law Office, we believe bankruptcy isn’t about giving up — it’s about taking your power back. We combine legal precision with compassion, strategy, and relentless advocacy to help you rebuild your life with dignity and strength.
You can certainly shop around for other, more experienced, award-winning attorneys or hire a large firm to handle your case. I offer competent, client-centered advocacy with compassion. When you hire Tirado Law Office, you won’t be just a number or a case file. While no attorney can guarantee results or a favorable outcome, I can guarantee that you will have direct access to me- an attorney who truly understands what you're going through and is willing to fight for you.
I walk you through every step of the process with compassion and clarity because I have been in your shoes. I know what questions you have, what fears keep you up at night, and what information you actually need (not legal jargon that leaves you more confused).
Areas We Serve
Colorado Springs, CO 80903
Wichita, KS 67216
Kansas: Chapter 7 Bankruptcy representation throughout the state.
Colorado: Chapter 7 and Chapter 13 Bankruptcy representation throughout the state.
Please note that consultations are remote only via Teams. Only initial bankruptcy consultations are free. In order to maintain an efficient practice, should you miss an appointment and want to reschedule, there will be a $150 fee assessed to be applied towards your legal fee should you choose to retain my services. Thank you for your understanding.
844-TIRADO-1
844-847-2361
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