What are the Las Vegas Chapter 7 Bankruptcy Rules in Nevada?
Ask Someone That Already Knows.
Chapter 7 Bankruptcy is the most common type of bankruptcy filed in the United States Bankruptcy Court. Statistically, over 90% of filings are Chapter 7 bankruptcy. It is not a difficult process; it is just unfamiliar because you don’t do it every day. Therefore, just like any other complex process like filing your taxes, It is not a good use of your time to learn all of the Las Vegas Chapter 7 bankruptcy rules. A bankruptcy attorney is easily affordable and will save enough time to make it worth your while.
Chapter 7 or Chapter 13 Bankruptcy
Everyone offers a free consultation where you can talk about your facts and consider the different personal bankruptcy chapters. Whether Chapter 7 bankruptcy or Chapter 13 bankruptcy, the decision is nor usually difficult.
Do You Qualify for Chapter 7 Bankruptcy
Chapter 7 bankruptcy is the traditional bankruptcy. It is what you would commonly think of when you say bankruptcy. You keep all of your exempt assets; don’t repay any unsecured non-priority creditors (yes, you keep your student loans and child support); and you don’t make any payments to the court. It is simply a fresh start. You get to do this once every eight years whether you need to or not.
Income Requirements for Chapter 7 Bankruptcy
The biggest requirement for Chapter 7 bankruptcy is income. If you make too much money, you have to pay some of your debt back. So, how much is too much? It depends on how big your family is. The more people you have to support, the more money you can make and not have to pay anything back in bankruptcy. You can find the income requirements here.
Other Chapter 7 Bankruptcy Requirements
There are a few other requirements for Chapter 7 bankruptcy. You can only receive a discharge every eight years. The eight year discharge requirement for Chapter 7 bankruptcy is measured from filing date to filing date. However, if you did not receive a discharge in an old Chapter 7 bankruptcy, it doesn’t count. If your Chapter 7 bankruptcy was dismissed for some reason without a discharge, you are good to go.
Mortgage Payments in Chapter 7 Bankruptcy
Another reason some people file Chapter 13 bankruptcy instead of Chapter 7 is that they are really fare behind in their mortgage. The law reads that you have to be current on your mortgage to file Chapter 7 bankruptcy. That is not quite true in practice. You have to be current enough on your mortgage that the mortgage company will not make a big deal out of it. As long as your mortgage company does not object, nobody else will care.
The next question to ask is if there is equity in the house. If there is no equity, you have nothing to protect, and you can just let it go. You can simply forfeit the house in bankruptcy and owe nothing. So, if there is equity, or if you want to keep your house for some other reason, you can catch the payments up in Chapter 13 bankruptcy.
What if Chapter 7 Bankruptcy Not Accepted?
If you are not being dishonest with the court, your bankruptcy has to be accepted. It is less of an application process and more of a sign up sheet. You have a right to to bankruptcy. It is a federal program. As long as you follow the rules, you get a discharge.
Hire a Chapter 7 Bankruptcy Lawyer
If you do determine that Chapter 7 bankruptcy is the best option for your situation, there are some rules, regulations, and basic information that you should be aware of. You may choose to file Chapter 7 bankruptcy individually or as a business. If you file as an individual, you will have to do so in a federal court, preferably with the assistance of a certified Chapter 7 bankruptcy attorney in your area. Not having an attorney can make the process virtually impossible to navigate and could result in a negative experience with bankruptcy.