Bankruptcy | Tough Economic Times and How Bankruptcy Can Help

Neighbors Look for Solutions to their Financial Difficulties

While many of our neighbors are distressed due to their finances in the middle of our recession, there is a necessity to understand the available options for the resolution of financial difficulties. 

            The economic figures for Colorado are bad in general:

• In 2010, there were 31,415 personal bankruptcies in Colorado.

• According to the Colorado Public Trustees, banks in Colorado have filed 15,348 foreclosures up to the end of July 2011.

• In February 2011, the unemployment rate in Colorado was 9.3%, the highest number in history for the state, according to the statistics of the Bureau of Labor Statistics.

          Thousands of Colorado and Denver residents have had relief from the threat of foreclosure with the counseling and referral services of the Colorado Foreclosure Hotline, 877-601-HOPE (4673). The U.S. Congress has passed legislation that continues benefits for the long-term unemployed.

            I want to use this space to discuss the option of bankruptcy that is in use more and more in these difficult times. According to Bradford L. Bolton, Clerk of the U.S. Bankruptcy Court in the District of Colorado, these months of unprecedented filings of personal bankruptcies come behind those of foreclosures and unemployment, because creditors need time to place pressure on the families that suffer from unemployment and foreclosures. Due to this, we can suppose that the rates of filing for bankruptcy will continue to grow.

            The lawyers practicing in federal bankruptcy courts have a lot of work. Even though bankruptcy is a big decision, it is a rational thing for many families in debt. To file a Chapter 7 bankruptcy gives a family a chance to maintain significant equity in their home, to keep their cars and other necessities, and still have a new start free from debt of medical bills, credit cards, and other debt. To file a Chapter 13 bankruptcy gives a family a chance to keep their property and make affordable payments to get out of debt.

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