Categories: Bankruptcy

Colorado Bankruptcy and Foreclosure

Property Exemptions and Mortgage Foreclosure

At Mile High Bankruptcy, we do not regard bankruptcy as a useful tool for interrupting a mortgage foreclosure, only to buy yourself a few months of desperate effort to find a way to save your house. These cases seldom work out the way you’d hope.

Instead, we encourage our clients to use bankruptcy as a way to salvage a difficult mortgage situation when it makes sense to do so. We work closely with our clients to help them understand their options, and sometimes Chapter 7 bankruptcy is the right approach toward resolving mortgage problems.

Call 303.831.0733 for a free consultation about your mortgage debt

Contact an attorney at Mile High Bankruptcy to learn what bankruptcy can and can’t do to help you keep your house in the face of mortgage pressure. The first thing we do is help you understand your mortgage situation as a part of broader financial circumstances.

Property Exemptions and Bankruptcy

Under what circumstances can you afford to keep your house? How much will a discharge of other debts, such as credit card bills or medical expenses, help make your mortgage payments affordable? It’s essential to understand just what you can expect to gain from bankruptcy.

If you have equity in your home, there’s a good chance that you can claim most or all of the equity as exempt from the claims of your creditors in bankruptcy. The current limits in Colorado are $60,000 for equity in real property. If you’re over 60 or disabled, the exemption goes up to $90,000. If you have significant equity to protect in bankruptcy, it might well make sense to get the protection of Chapter 7 to relieve immediate unsecured debt pressure and continue making normal payments on your house.

Not every mortgage is worth protecting

Bankruptcy can help you save your house, but only if you have the practical ability to meet your monthly mortgage obligations in the future. We can help you figure out how a discharge of other debts can give you that ability if you don’t have it right now. We can also help you decide whether keeping your current mortgage in place makes best sense for you in the long run.

For a free consultation about your mortgage options in bankruptcy, contact an experienced lawyer at Mile High Bankruptcy in Denver.

We are a debt relief agency. We help people file for bankruptcy relief under the U.S. Bankruptcy Code.

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