Bankruptcy 101 CAPT HELEN RICKEY

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1 Bankruptcy 101 CAPT HELEN RICKEY 21 SW/JA, PETERSON AFB, CO 27 OCTOBER 2016 UNCLASSIFIED Overview Federal Court Debtors Schedules Chapter 7 Chapter 13 Chapter 11 Creditors 1

2 United States Bankruptcy Court District of Colorado United States District Court for the District of Colorado Bankruptcy Court Filing Without An Attorney Videos with information for before and after you file Debtor Happy Law Debtor can be: Individual Partnership Corporation or other business entity 2

3 Schedules Voluntary Petition Means Test Statement of Financial Affairs Statement of Intention Schedule A: Real Property Schedule B: Personal Property Schedule C: Property Claimed as Exempt Schedule D: Creditors Holding Secured Claims Schedule E: Creditors Holding Unsecured Priority Claims Schedule F: Creditors Holding Unsecured Nonpriority Claims Schedule G: Contracts and Unexpired Leases Schedule H: Codebtors Schedule I: Income Schedule J: Expenses Secured Debt Schedules A and D PMSI (Purchase Money Security Interest) Vehicle/Boat Loan Real Estate Home Mortgage (1 st ) HELOC (Home Equity Line of Credit) (2 nd ) Additional Home Loan (3 rd ) 3

4 Unsecured Debt Schedules E and F Credit Cards Payday Loans Personal Loans Taxes (priority) Student Loans (special category) NOT AN ENDORSEMENT Student Loans Schedule F Includes all loans obtained to support education Federal Student Loans and Private Loans Not eligible for discharge Exception Must file a federal lawsuit within the Bankruptcy case Judge may determine that debt should be discharged If debtor s disability makes it impossible to use the degree obtained by the student loans Parties may choose to settle the debts 4

5 Schedules B and C Must list all assets Regardless of location or possession Exemptions Allows debtor to keep assets Regulated by state law or federal law (opt in/out) Federal 11 USC 522 Colorado Revised Statutes Homestead: $75,000 or $150,000 (if occupied by an elderly (60+) or disabled debtor or spouse) Personal Property: Jewelry $2,500 Motor Vehicle: up to two with an aggregate value of $7,500 ($12,500 if elderly or disabled debtor) Tools of Trade: $50,000 Wildcard: None All pensions Means Test and Schedules I and J Means Test and Schedule I Calculation based on total annual income Income from all sources within 6 months prior to file Less statutory deductions Taxes Social security Mandatory deductions from paycheck Childcare Payments on secured debt (if intend to keep property) Retirement accounts Schedule J Statutory deductions Additional expense deductions 5

6 Automatic Stay Automatically stops all debt collection 11 USC 362 Includes: Calls from creditors and collection agencies Attempts to repossess a vehicle Foreclosure of real estate Chapter 7 Liquidation Chapter Trustee administers any non exempt property Thresholds based on annual household income No debt limits Must wait 8 years between filings Fee: $245 filing fee + $75 misc. admin. fee + $15 trustee surcharge Waiver may be available Up to 4 installment payments Must be completed prior to receiving discharge 6

7 Chapter 13 Reorganization Chapter Trustee oversees plan feasibility Option for individuals whose income is too high to qualify for Chapter 7 Must wait 6/4/2 years between filings Can be dismissed at any time Debt limits If over income threshold for Chapter 7 and over debt limit, may consider filing a Chapter 11 Chapter 11 Business Reorganization Chapter Trustee oversees plan for reorganization Currently oversees matching newer attorney with experienced attorney to expedite process May be necessary for individuals who exceed the income threshold for Chapter 7 and who exceed the debt limits for Chapter 13 A business may file a Chapter 7 if they intend to close 7

8 Creditors Proof of Claim Resources Sources of information: Colorado Revised Statute and Title 11, US Code Forms 8

9 Summary Federal Court Debtors Schedules Chapter 7 Chapter 13 Chapter 11 Creditors QUESTIONS? 9