(720) 233-7900 Antonia@rka-law.com

Good news in terms of Coloradans seeking bankruptcy relief in fewer numbers in 2011.

Through November, 7% fewer bankruptcy cases were filed in 2011 verus 2010, according to statistics on the website of U.S. Bankruptcy Court, District of Colorado.  While figures aren’t yet available for December, it would seem that filings will continue to track lower for the year 2011 versus 2010.

Most Coloradans file for Chapter 7 relief, which allows for a foregiveness of most unsecured debt.  Figures through October, 2011, suppored this fact, to the tune of about 83% of filings.  That’s about the same as in 2010.

Second most used is Chapter 13 relief, which allows a short time period for debtors to reorganize, to have future interest stop, and to pay some portion (e.g. 50 cents on the dollar) on their debt over a 60-month repayment period.  Figures through October, 2011, indicate that about 17% of Coloradans filed for Chapter 13 relief.

Very few businesses and individuals sought Chapter 11 relief, and only 112 had done so through October.  Only two Colorado farmers filed for Chapter 12 relief through October.

Not counted in the Chapter 7 filings are Involuntary Petitions whereby creditors force debtors (e.g. who have committed fraud) into Chapter 7 bankruptcy liquidation to recover preferential transfers.  The court estimates these filings at about a dozen or 20 per year.