Legal Question in Bankruptcy in Colorado

Re: Joint ownership in a home

Short answer --- You should file an individual chapter 7 case with little effect on your spouse's credit.

You are being gouged with interest rates (I guess between 16% to 21%) and as a result it will take years and years to repay. This is heavy emotion as well as financial burden. You would be better served by using your time and energy to focus on a savings strategy -- paying YOURSELF each month by contributing to an IRA or a mutual fund. Also, eventually a creditor could (and would if the balance is high enough) file suit against you and the result would be a judgment that stays with you indefinitely.

EVERYONE DESERVES AT LEAST ONCE CHANCE TO START OVER FRESH! Please read my firm's philosophy. Currently, the bankruptcy laws make it easy to file. The Congress and Senate may make changes to these laws making it very difficult to file for a complete "discharge" (the term in bankruptcy which means eliminate or wipe-out your debts) In the future it may be possible to discharge only a small portion of your debts. So if you had a judgment against you for example, you might only be able to discharge a portion of this debt. Your spouse does not have to file but if you have joint credit card accounts I would strongly suggest that he/she file as well.

Your question as to your home depends on the equity (the amount the house is worth minus the amount you owe on the mortgage) you have in the property. In Colorado you can exempt the equity in your home up to $30,000. If you have more than $30,000 in equity you would probably need to file under Chapter 13 instead of Chapter 7 and repay a portion of your debts. Please call me to discuss the your particular situation in greater detail. ph. (800) 303-0720