Chapter 7 Bankruptcy
Drowning in Debt?
Consider Chapter 7 Bankruptcy
If you feel like you’re drowning in debt and make less than Nevada’s median income, you may want to consider filing for Chapter 7 bankruptcy. Chapter 7 bankruptcy wipes the slate clean, completely eliminating eligible debts. It can erase credit card debt, personal loans, checking account overdrafts, certain tax debts, medical bills, and utility charges. Chapter 7 bankruptcy allows you to take a breather by liquidating your assets, reorganizing your finances, and hitting the reset button your financial life.
Chapter 7 conveys a number of benefits:
- Speed: It typically takes only four to six months from the day your case is filed until the day your debts are discharged
- Simplicity: There are no payments to your creditors. You work with a bankruptcy attorney to prepare the necessary paperwork, file your case, and have your eligible debts discharged
- Protection: Creditors must stop collection calls, wage garnishments, lawsuits against you, repossessions, and foreclosures
- Retain Property: You may be able to keep some of your property in a Chapter 7 filing, such as your house, car, retirement accounts, and household furnishings
- Long-Term Credit Score Improvement: Over time, most people who file Chapter 7 rebuild their credit scores; they are able to get their finances under control, rather than continuing to struggle under an increasing debt load.
Liquidation Exemptions: Holding on to Life’s Necessities
Chapter 7 bankruptcy is intended to be a process whereby your assets are liquidated, your creditors are paid to the greatest extent possible, and the remainder of your eligible debts are discharged. In other words, you no longer owe the money. However, Nevada’s bankruptcy exemptions allow you to keep some or all of your property. Common exemptions include:
- Up to $605,000 of home equity
- Up to $15,000 in vehicle equity
- Up to $5,000 of equity in jewelry, art, books, and instruments
- Up to $12,000 of equity in appliances, electronics, clothing, and home furnishings
- Up to $10,000 of any personal property
- Certain income tax refunds, personal injury awards, wrongful death awards, and money for victim restitution
- Income from social security, unemployment benefits, worker’s compensation, and public assistance
- Certain retirement accounts
Unfortunately, not every debt can be eliminated under Chapter 7. Debts that cannot be discharged include most taxes, child support, spousal support, matrimonial settlements, debts obtained through fraud or false pretenses, court-ordered fines and criminal restitution, and most student loans.
Am I Eligible to File Under Chapter 7?
In 2005, Congress passed the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA). The law was intended to put a halt to abuses of Chapter 7 bankruptcy by reserving Chapter 7 for those with the lowest incomes. As a result, those wishing to file for a Chapter 7 bankruptcy must demonstrate that their income is at or below the median income for Nevada.
If you don’t meet the means test for Chapter 7 bankruptcy, Chapter 13 bankruptcy is still an option. During your initial consultation your Nevada Bankruptcy Attorneys bankruptcy attorney will determine which type of bankruptcy will work best for you.
How Much Does Chapter 7 Bankruptcy Cost?
Cost matters – especially when you’re trying to get your financial house in order. At Nevada Bankruptcy Attorneys, we work with any budget. Typically, our fee ends up being a small percentage of the total amount of debt that our client is able to eliminate.
In addition to our fee, there is the cost of the BAPCPA-mandated credit counseling course and financial management course, as well as a Bankruptcy Court filing fee.
Nevada Bankruptcy Attorneys Can Help
If you’re considering Chapter 7 bankruptcy, Nevada Bankruptcy Attorneys can help. Bankruptcy is a complicated process, and one that you shouldn’t try to achieve on your own. Our experienced bankruptcy attorneys are here to guide you through every aspect of the process, and are determined to give you the fresh start you deserve. Call us today at (702) 805-1659 for your FREE case evaluation.