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Questions Answered by Clark Dray
1 Answer | Asked in Banking, Bankruptcy and Business Law for Colorado on
Q: I am in Colorado, can I declare bankruptcy for my business credit card without having my personal credit score affected?

I have a business credit card, and paying off this business credit card is going to take me years. I am okay with declaring bankruptcy on this business credit card and taking the hit to my business credit score as long as the following criteria are assured.

1: My personal credit score must... View More

Clark Dray
Clark Dray
answered on Jul 27, 2023

The most important element here is whether you personally guaranteed the business debt. If you did, the business bankruptcy won't wipe out your personal obligation to pay that debt. If the business is solely liable for the debt, which is very rare, there isn't any reason your personal... View More

2 Answers | Asked in Bankruptcy for Colorado on
Q: My elderly parents have no property, but a lot of debt. If they file for bankruptcy can they keep their annuity payments
Clark Dray
Clark Dray
answered on Jul 30, 2021

This is going to depend on the nature of the annuity payments. If the annuity is a qualified retirement account, it's protected in bankruptcy. If it's some other form of financial product, the annuity might not be safe. Have your parents schedule a free consultation with a local... View More

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2 Answers | Asked in Bankruptcy for Colorado on
Q: With booming housing market, can I sell my house for over the homestead exemption?

I have gotten my discharge in chapter 7, but I am considering filing for a motion to abandon on my house. I’ve lost my job and need to get something more affordable. I am worried that since the housing market is up, it will be worth

More now than when I filed. If it does, and I get more... View More

Clark Dray
Clark Dray
answered on Jul 16, 2021

1. Ask your lawyer.

2. If you don't have a lawyer and the Trustee's filed a report of no distribution, pay your court filing fee, file the Debtor Education Certificate, and wait for the case to close on its own. Because Trustees in CO don't routinely file motions to abandon...
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2 Answers | Asked in Bankruptcy, Car Accidents and Personal Injury for Colorado on
Q: Can personal bankruptcy eliminate the debt for a $20,000 judgement for a traffic crash while driving with no insurance?
Clark Dray
Clark Dray
answered on Jul 4, 2021

If you are involved in an auto accident and you don’t have insurance, your driver’s license can be suspended under Colorado’s Motor Vehicle Financial Responsibility Law. In order to have your license reinstated, you’ll need to obtain insurance and get into a payment plan for the damages... View More

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1 Answer | Asked in Bankruptcy for Colorado on
Q: Wondering if i can get someone to help me file for bankruptcy. Or atleast help me get out of some debt..

Try to see which is more affordable or a lot better for me. Chapters 7, 11, or 13, maybe if there’s better options? My debt is around 39,000. Basically being young and irresponsible.. i want a fresh new start.

Clark Dray
Clark Dray
answered on Apr 27, 2021

In Colorado, many bankruptcy attorneys will provide you with a free consultation. During this consult, you'll let them know about your circumstances and the attorney will explain the various options including the different forms of bankruptcy. A free consult with a lawyer is your first step... View More

2 Answers | Asked in Bankruptcy for Colorado on
Q: I filed for chapter 7 in June 2019. Would have been sooner but elderly lawyer took 9 months to file a very simple case.

I filed for chapter 7 in June 2019. Would have been sooner but elderly lawyer took 9 months to file a very simple chapter 7. Two months later, my chapter 7 was discharged & my mother unexpectedly died in a heap of trash & dead animals in her house & left me money. I am still traumatized... View More

Clark Dray
Clark Dray
answered on Oct 2, 2020

There aren't a lot of good options here, but if your mother had estate planning documents like a will or a trust, they should be examined by an experienced bankruptcy attorney to see whether they contain language which might shelter some or all of the inheritance (a spendthrift provision).

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2 Answers | Asked in Bankruptcy for Colorado on
Q: Will a non-filing spouse be held liable for a spouse's medical debts in a Chapter 7? (In Colorado)

Are medical debts dischargeable in a Chapter 7 if they are only under the filing party's name? If the filing party is married, will the non-filing spouse be held liable for a spouse's medical debts in a Chapter 7? (In Colorado)

Clark Dray
Clark Dray
answered on Aug 20, 2020

I have seen an order dismissing a case where a spouse was sued under the family purpose doctrine for medical debt. However, I also recall that there's a state court judge who has held that a spouse can be liable for medical debts. There's not a lot of case law either way, so you should... View More

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2 Answers | Asked in Bankruptcy for Colorado on
Q: I live in a travel trailer, if I file for chapter 7 bankruptcy, will that count as my homestead exemption?
Clark Dray
Clark Dray
answered on Jul 21, 2020

You need to consult with an attorney for an in-depth answer because there are several different exemptions which might apply. That said, here is part of a decision in a Colorado bankruptcy case (Case:17-13786-JGR Doc#:35) which sets out some of the relevant law:

C.R.S. § 38-41-201.6 was...
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2 Answers | Asked in Bankruptcy for Colorado on
Q: For chapter 7,do I need to list my mom as my landlord if we have a verbal rent contract, but no written lease contract?

She owns the house and doesn't live here, and I pay her rent monthly out of my bank account and have been paying her back rent too.

Clark Dray
Clark Dray
answered on Jun 11, 2020

It would be best to list it as an executory contract. When in doubt, disclose. She'll get notice about the bankrutpcy, so you might want to give her a heads up if she doesn't already know. As long as you're only making normal monthly rent payments and you haven't made any... View More

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2 Answers | Asked in Bankruptcy for Colorado on
Q: If I file before the 2nd stimulus check may pass can trustee take this money since CO has no wildcard exemption?
Clark Dray
Clark Dray
answered on Jun 10, 2020

While they don't have to, bankruptcy trustees have been leaving stimulus money alone.

If you file before any bill passes providing for a second round of stimulus, that money would not be part of the bankruptcy estate.

Additionally, the CO legislature is working on a bill to...
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3 Answers | Asked in Bankruptcy for Colorado on
Q: I qualify for Chapter 7. After I file will my stimulus money be an estate asset that bankruptcy trustee can take?
Clark Dray
Clark Dray
answered on Apr 16, 2020

While Trustees have been strongly encouraged to leave it alone, there is nothing that prevents the trustee from taking the stimulus money from you if you still have it at the time the case is filed. You should spend the money on living expenses or paying your attorney's fees and keep receipts.

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3 Answers | Asked in Bankruptcy for Colorado on
Q: I will be filing Chapter 7 at the end of April. I just received my stimulus money. Will the bankruptcy trustee take it?
Clark Dray
Clark Dray
answered on Apr 16, 2020

While Trustees have been strongly encouraged to leave it alone, there is nothing that prevents the trustee from taking the stimulus money from you if you still have it at the time the case is filed. You should spend the money on living expenses or paying your attorney's fees and keep receipts.

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4 Answers | Asked in Bankruptcy and Small Claims for Florida on
Q: Does successfully cashing a previously bounced NSF debtor's check during a ch7 bankruptcy violate the automatic stay?

My Ex took $1000 that did not belong to her. She claims the taking was in error. She wrote a check to repay the $1000 which bounced due to NSF. She told me she was stopping payment on the check and filing bankruptcy. She demanded I return the check to her. I refused unless she signed a payment... View More

Clark Dray
Clark Dray
answered on Mar 17, 2020

You may not have violated the stay, depending on whether you were listed as a creditor in the bankruptcy and what sort of notice went out. However, the money you received was part of the bankruptcy estate if the check cleared after the case was filed, and it is plausible that the bankruptcy trustee... View More

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2 Answers | Asked in Bankruptcy for North Carolina on
Q: Can I get a refund of money that was kept in the trustee office after my chapter 13 bankruptcy was dismissed?

Dismissed due to multiple missed payments. Lawyers were paid off top, 1st year over 5,000. Where is my money? All of the creditors claim they never received any money. is the money held at the trustee office until completion, then distributed to each creditor?

Clark Dray
Clark Dray
answered on Mar 10, 2020

If your bankruptcy trustee uses their system, you can get details about how the funds in your case were disbursed by logging into https://www.ndc.org/home. Because debts are paid in a specific order, some of your creditors may not have received any money because higher priority creditors get paid... View More

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2 Answers | Asked in Bankruptcy and Libel & Slander for Oregon on
Q: I hold a judgement granted me against Debtor in small claims for liable. How do I file an objection to her Ch7 discharge

Liable was done with Malice and attempt to cause harm

Clark Dray
Clark Dray
answered on Feb 28, 2020

I can't speak to the exact procedure in Oregon, but it's probably done by bringing an adversary proceeding to have the debt determined to be nondischargeable. You'll need an attorney for this.

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3 Answers | Asked in Bankruptcy on
Q: Can I file for bankruptcy if I am married but we have no joint accounts or debt?

I do not want him involved in the bankruptcy

Clark Dray
Clark Dray
answered on Feb 17, 2020

Yes, you can file your own bankruptcy without your spouse. However, if you're living in the same household the court is going to be interested in his income to determine whether you qualify for Chapter 7.

You should also be aware that in many states, spouses can be held responsible for...
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3 Answers | Asked in Bankruptcy for Arizona on
Q: Removing garnishment - Chapter 7

Someone owes me money and I won a default judgement and just filed for garnishment. I received notice that they are filling for Chapter 7. The email from the her lawyer said I had to contact her employer to remove the garnishment. Do I need to do this, or should they do this? Honestly, I... View More

Clark Dray
Clark Dray
answered on Jan 13, 2020

Stop the garnishment and then consult with a local creditors attorney to find out whether the debt is actually dischargeable in bankruptcy. If not, the attorney can let you know whether it's worth the time, effort, and money to pursue the issue further through the bankruptcy court.

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2 Answers | Asked in Bankruptcy for Ohio on
Q: Can I ask for a fee waiver for filing Chapter 7 if I am going to resubmit?

I filed Chapter 7 bankruptcy. I completed everything that was needed to do so. Somewhere along the lines I got confused and sent my second course completed paperwork to my trustee instead of the courts. The courts discharged my filing. I got told that I have to resubmit. I do not have the money... View More

Clark Dray
Clark Dray
answered on Jan 6, 2020

Check with your local legal aid office about filing a motion to reopen your case so that you can file the certificate. This way you don't need to start over and have two different bankruptcy cases on your credit report. They can also help you with an application for a fee waiver.

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2 Answers | Asked in Bankruptcy for Colorado on
Q: Do I have to give the trustee my lawsuit money if my discharge date is 01/12/20 and I already had my meeting of Creditor

My lawsuit hasn't been settled yet.

Clark Dray
Clark Dray
answered on Dec 11, 2019

If you had a claim against a third party on the day the case was filed, that is an asset which is probably property of the bankruptcy estate. This means that the lawsuit isn't yours to settle. Your attorney in the suit will need to coordinate with the trustee to settle the claim. Part of the... View More

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3 Answers | Asked in Bankruptcy and Real Estate Law for Texas on
Q: 1 week away from closing. Title company won't move forward. House is already sold and buyer waiting.

We have the letter - from the Trustee: Chapter 7 Trustee's Report of No Distribution. Our Attorney states this is enough. Attorney is in car accident and on 3-week medical leave. Title company says the letter isn't enough but no real good explanation as to why. Maybe it's because... View More

Clark Dray
Clark Dray
answered on Nov 23, 2019

Title companies often screw up bankruptcy questions, but I think they're right here. Until the case is closed, the home remains property of the bankruptcy estate and isn't yours to sell. The Trustee's Report of No Distribution doesn't affect this. Maybe there's a different... View More

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