Bankruptcy in Las Vegas, NV
Are you contemplating bankruptcy or hiring a bankruptcy attorney in Las Vegas, Nevada? Are you tired of creditors calling for payments you can’t make? Maybe looking for a way to get out of debt and have you exhausted all other options? Then bankruptcy might be the solution you seek. It is a legal option that can erase a portion or all of your debts.
Types of Bankruptcy in Las Vegas, Nevada
Bankruptcy is a legal process that helps individuals and businesses get a fresh financial start. It eliminates a portion of or all of their debts or financial liabilities. In Las Vegas, NV to be approved, individuals must prove they have a hardship that prevents them from staying current on their financial obligations. Keep in mind that not all debts qualify. Some liabilities, such as child support arrears, delinquent taxes, alimony, and student loans generally do not qualify for discharge. Consumers who find themselves falling behind in debt can file either Chapter 7, 11 or 13. To determine which option is right for you, you’ll need to assess your goals, assets, and income. You should also consider working with an experienced bankruptcy attorney.
Las Vegas residents that have to appear in court during this time may need to attend hearings in the U.S. Bankruptcy Court of the District of Nevada.
Chapter 7 Bankruptcy
Many people find Chapter 7 to be the right solution for their circumstances because it provides them with the opportunity to start over financially. However, before filing for Chapter 7 bankruptcy, you should thoroughly assess your income and ability to repay what you owe. You should also speak with a bankruptcy attorney in Las Vegas who can help you to decide if a liquidation plan is right for you.
Typically, individuals approved for Chapter 7 lack stable income or have experienced a change in circumstances that has resulted in an inability to manage their debts. Though Chapter 7 erases debts, the tradeoff is you may have to give up certain possessions, such as your home, car or some other assets. However, once you file your petition, an automatic stay goes into effect that requires all collection activity against you like foreclosures and garnishments, to stop temporarily. However, the automatic stay does not prevent all collection attempts. For example, if you owe child support or restitution for a criminal case, you are still liable for those payments.
Chapter 7 filing requirements published by the U.S. Bankruptcy Court of the District of Nevada refer to this as a liquidation. This is a serious step to take, so anyone who files from Las Vegas needs to present a certificate of credit counseling also. Other documents required by the court for the initial filing include:
- $338 filing fee
- Creditor Matrix File
- Voluntary Petition for Individuals Filing for Bankruptcy
- If applicable, an application for Individuals to Pay the Filing Fee in Installments
- If applicable, an application to Have the Chapter 7 Filing Fee Waived
Chapter 11 Bankruptcy
Chapter 11 bankruptcy is more complex than other types of bankruptcy. It is often used by businesses and certain types of people. It allows petitioners to restructure their debts with a reorganization plan, so they are easier to manage over a determined length of time, usually four to 18 months. The main benefit of Chapter 11 bankruptcy is that it does not require petitioners to sell off or liquidate their assets to pay what they owe. It does allow debtors to negotiate with their creditors a reorganization plan that enables them to stay current on their debts moving forward.
Chapter 11 filing requirements under federal law make credit counseling mandatory before petitioning. You must submit a certificate unless you have pressing circumstances or currently serve in the military. While individuals from Las Vegas can file for Chapter 11, this debt relief more often applies to businesses. A situation where this can benefit a person would be a sole proprietorship that became overwhelmed with bills or liabilities.
Chapter 13 Bankruptcy
Chapter 13 Bankruptcy is a debt restructuring or wage earners plan. In Las Vegas, NV after you file, the courts will assign a trustee to examine your liabilities and assets and ability to pay bills. Unlike other types of bankruptcy, Chapter 13 involves you restructuring your debt with a three to five-year repayment plan. The flexibility of this repayment plan will depend on what property you want to keep and how steady your income is. It may also give you the opportunity to have some or most of your debts discharged.
Minimum requirements to file for Chapter 13 bankruptcy include a voluntary petition, creditor matrix, and a $313 filing fee. Las Vegas residents may apply to pay in installments or have the cost waved, but approval depends on your circumstances. You will need to prepare a list of your creditors, amounts owed, and standard paperwork like your Social Security Number. If you send an incomplete petition to the court, you can face additional expenses to reapply after the denial.
The Bankruptcy Process in Las Vegas, Nevada
There is never an ideal time to declare bankruptcy. However, if you are unable to pay off what you owe within five years, filing for bankruptcy can help you to lessen the negative impact on your situation and help you get back on track.
In Las Vegas to begin the filing process, gather all of your financial records, including monthly expenses, debts, assets and annual income. This information is crucial to give the courts an accurate picture of your circumstances. Failure to provide all necessary information can result in your petition being denied.
Nevada legislation affords Las Vegas debtors protections for some of their property. The homestead exemption in the state is especially generous compared to others because it goes up to $605,000 for a house or mobile home. Other personal items and their corresponding equity values include:
- Up to $16,150 worth of awarded damages for personal injury
- 1 gun and military uniforms
- Up to $5,000 in art, books, musical instruments, and jewelry
- Up to $12,000 in electronics, appliances, and other household goods
At least six months before you file for bankruptcy, eliminate unnecessary spending. Do not run up the balances on your credit accounts. You’ll also need to complete an approved credit counseling course, usually online or over the phone. Credit counseling is necessary to help you learn financial literacy and help you learn better financial habits. Once you complete the course, you’ll receive a certificate of completion to include in your filing. If you don’t have the certificate of completion from the credit counseling course that you took, the courts will reject your bankruptcy petition.
Work With an Experienced Las Vegas, Nevada Lawyer
Hiring a local bankruptcy lawyer in Las Vegas during this process can help reduce the costly risks of self-representation in court. An experienced bankruptcy lawyer understands state and federal bankruptcy laws. He or she can help you understand which laws apply to your case, especially which debts that can be discharged or can’t be discharged. An experienced Nevada attorney can also offer you guidance to improve the outcome of your case.
Keep in mind that there are debt management alternatives and financial resources that may benefit you more than bankruptcy, such as debt consolidation. Though bankruptcy is an attractive solution, it is best as a last resort. Do you need immediate help? Then one of our experienced lawyers in Las Vegas can guide you through the entire bankruptcy process. We can even help you connect with an attorney across Nevada state lines.
Submit a request online or call us today at (866) 345-6784 to get in touch with an experienced lawyer in your area!