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Colorado homeowner guide

Chapter 13 Bankruptcy and Foreclosure in Colorado

By Jeff Phillips, Vindicator Solutions · Updated October 2026

Important: Jeff Phillips and Vindicator Solutions are not attorneys and do not give legal advice. This page summarizes public information from the U.S. Courts and other credible sources so you know what to ask. Bankruptcy has serious, long-term consequences — talk with a licensed Colorado bankruptcy attorney before deciding.

Chapter 13 is the type of bankruptcy most often used to stop a foreclosure and catch up on a mortgage over time. Here is what it is, how it works with a Colorado foreclosure, and when it may — or may not — make sense.

What Chapter 13 is

Chapter 13 is a court-supervised repayment plan for people with regular income — sometimes called a “wage earner’s plan.” You keep your property and pay some or all of your debts through a plan that lasts three to five years: generally three years if your income is below the Colorado median, and up to five if it is above.

How Chapter 13 can stop a foreclosure

  • The automatic stay. Filing a bankruptcy petition automatically stops most collection actions — including a foreclosure sale — while the stay is in effect.
  • Catching up over time. Past-due mortgage payments can be spread out and repaid through the plan instead of all at once.
  • You must stay current. You also have to keep making your regular monthly mortgage payments that come due during the plan.
  • Timing matters. The stay can’t undo a Public Trustee sale that was already completed before you filed. If you miss payments after filing, the lender can ask the court to let the foreclosure continue.

When Chapter 13 may make sense

  • You have steady income that can cover your regular mortgage payment plus a plan payment toward what you are behind.
  • You want to keep the home, and it has equity worth protecting.
  • A foreclosure sale is close and the lender won’t agree to a workout in time.
  • You also have other debts — such as credit cards, medical bills or tax debt — that a single plan can address.
  • Someone co-signed a consumer debt with you; Chapter 13 generally also pauses collection against co-signers on consumer debts while the case is active.

When it may not be the right tool

  • Your income can’t realistically support the regular payment plus the catch-up amount for three to five years.
  • You don’t actually want to keep the house — selling before the sale may protect more of your equity and avoid a bankruptcy on your record.
  • A loan modification, repayment plan or curing the default (sometimes with a private loan) could solve the problem without bankruptcy.
  • You filed a bankruptcy case that was dismissed in the past year. In a repeat filing, the automatic stay may last only 30 days unless the court extends it.

Who qualifies

  • Individuals with regular income, including self-employed people.
  • Debt limits: unsecured debts under $526,700 and secured debts under $1,580,125 on the filing date (amounts as listed by the U.S. Courts; they adjust periodically).
  • You must take credit counseling from an approved agency within 180 days before filing.

Costs, timeline and credit

  • Court fees: $313 to file a Chapter 13 case ($235 filing fee plus a $78 administrative fee). Attorney fees are separate and vary; some can be paid through the plan.
  • Length: three to five years of plan payments, made to a Chapter 13 trustee.
  • Credit report: a Chapter 13 bankruptcy generally stays on credit reports for 7 years from the filing date.
  • If payments stop: the court may dismiss the case or convert it to Chapter 7 — and a foreclosure can resume.
  • Not discharged: long-term debts like your home mortgage continue after the plan ends.

Free and low-cost help in Colorado

  • The U.S. Bankruptcy Court for the District of Colorado lists free legal help resources, including Colorado Legal Services and Metro Volunteer Lawyers.
  • Colorado Legal Services provides free civil legal help to eligible low-income Coloradans and seniors: 303-837-1313.
  • Free HUD-approved foreclosure counseling: Colorado Foreclosure Hotline, 1-877-601-4673.
  • Find an approved credit counseling agency (required before filing).

Where Vindicator Solutions fits

We are not attorneys and never tell anyone whether to file bankruptcy. What we can do is lay out the non-bankruptcy options side by side — catching up with a private loan, selling on your terms, or pointing you to free counseling — so you can bring real numbers to an attorney and make the call that is right for your family.

Sources

  1. U.S. Courts — Chapter 13 Bankruptcy Basics
  2. U.S. Courts — Bankruptcy Court Fee Schedule
  3. U.S. Bankruptcy Court, District of Colorado — Filing Without an Attorney
  4. U.S. Bankruptcy Court, District of Colorado — Free Legal Help
  5. U.S. Trustee Program — Approved Credit Counseling Agencies
  6. Colorado Legal Services (free civil legal help for eligible Coloradans) — 303-837-1313
  7. Experian — When Does Bankruptcy Fall Off My Credit Report?

Common questions

Does filing bankruptcy stop a foreclosure in Colorado?

Filing a bankruptcy petition triggers an automatic stay that generally halts a foreclosure sale while the stay is in effect. It cannot undo a sale already completed before filing, and a lender can ask the court for permission to continue if payments are not made.

Can I file Chapter 13 the day before my foreclosure sale?

A petition filed before the sale generally triggers the automatic stay. Waiting until the last minute is risky, though — you still need credit counseling first, and repeat filers may get only a 30-day stay. Talk with a bankruptcy attorney as early as possible.

Will I lose my house in Chapter 13?

Chapter 13 is designed to let you keep property while you repay over time. You can still lose the home if you fall behind on your regular mortgage payments or plan payments after filing.

How much does Chapter 13 cost?

Court fees are $313 ($235 filing fee plus a $78 administrative fee). Attorney fees are separate and vary; some can be paid through the plan.

How long does Chapter 13 last?

Usually three to five years: generally three years if your income is below the state median, and up to five if it is above.

How long does Chapter 13 stay on my credit report?

Generally 7 years from the filing date, according to Experian. Chapter 7 generally stays for 10 years.

Can I sell my house during Chapter 13?

Often yes, but because your property is part of the bankruptcy case, a sale generally needs approval through the court process. Ask your attorney before signing anything.

Do I need a lawyer for Chapter 13?

You are not required to have one, but Chapter 13 is complex and the U.S. Courts strongly suggest getting legal advice. The Colorado bankruptcy court lists free legal help resources.

This guide is general information, not legal, tax or financial advice. Foreclosure dates and rules can change — confirm your situation with your county Public Trustee, a HUD-approved counselor (1-877-601-4673), or a Colorado attorney.

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