Legal Question in Bankruptcy in Colorado

A friend of mine is involved in a divorce where the husband has an attorney and my friend is representing herself with a GAL in attendance. She has no money to pay attorneys and owes over $150,000 in taxes so she was advised to file bankruptcy. The GAL didn't want her to file bankruptcy, nor did the District Court Judge. She hired an attorney and filed a chapter 7; filed all the documentation, went to the creditors meeting, took the management course and was waiting for the deadline of the proofs of claim. All of a sudden, without hearing, the bankruptcy judge discharged her bankruptcy...........not dismissed, discharged. Her attorney now won't talk to her and keeps saying he is still her attorney. What is going on here?

Asked on 8/27/16, 6:13 am

1 Answer from Attorneys

Stephen Harkess Colorado Legal Solutions

Discharge is what a debtor wants to get from a bankruptcy. That much is the good thing. It does not, however, mean that her bankruptcy is over.

Whether or not the bankruptcy will end up having been a good idea overall for your friend is still up in the air. A Chapter 7 won't fix her tax problem unless the taxes are several years old and she may still be held responsible for any marital debts in the divorce. It usually makes more sense to file bankruptcy after the divorce orders are entered, but hopefully your friend understood what she was doing when she rejected the advice of the divorce court judge and the GAL.

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Answered on 8/27/16, 1:39 pm

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