Effectively, an automatic stay is enacted when bankruptcy is filed because the court wants to prevent any single creditor from seizing all of a borrower’s assets, as this could leave other creditors empty handed. Instead, the borrower’s assets will become part of the bankruptcy estate, and the trustee overseeing the case will determine how these assets will be handled.
Filing for Bankruptcy: How the Automatic Stay Can Protect Your Assets
While the automatic stay associated with filing for bankruptcy will immediately protect a borrower’s assets, it may possible to invoke a longer-term protection of your assets – namely in that you may be able to keep your assets – by using exemptions provided by Colorado Bankruptcy Law. These exemptions allow for borrowers to keep some of their assets (up to a maximum dollar amount) by permitting them to be left out of the bankruptcy estate.
Some of the assets covered by the exemptions in Colorado Bankruptcy Law include (but are not limited to):
➡ Motor vehicles
➡ Tools of the trade
➡ Personal items (like clothing and jewelry)
➡ Insurance policies and proceeds
➡ Certain benefits.
The Experienced Denver Bankruptcy Lawyer at Lindquist-Kleissler & Company, LLC
If you are buried in debt or are facing serious financial crisis, Denver Bankruptcy Lawyer Arthur Lindquist-Kleissler can help you resolve your financial issues while retaining as many of your assets as possible.
Mr. Lindquist-Kleissler and the other legal professionals at Lindquist-Kleissler & Company, LLC have been providing both individuals and businesses with the highest quality of legal services since 1979. From simple to complex bankruptcy cases, Mr. Lindquist-Kleissler can always be trusted to maximize utilization of Colorado Bankruptcy Law to effectively guide his clients through bankruptcy and help them achieve the best possible resolutions to their cases.
Contact Us to Discuss Your Debt Relief Options
To learn more about your debt relief options and how bankruptcy may help you protect your assets, set up a free 30-minute consult by calling (303) 691-9774 or by emailing our firm using the form on this page. You will pay nothing up front to obtain trusted, professional advice regarding your case and your options.
From our office in Denver, Arthur Lindquist-Kleissler represents clients throughout the Great Denver Metropolitan area and Colorado, including (but not limited to) Aurora and Arapahoe County.