Bankruptcy Overview

Las Vegas, Nevada, Bankruptcy Attorneys

You may be considering filing for bankruptcy for all sorts of reasons. Perhaps you are overwhelmed by medical expenses, are facing the financial burden of divorce or credit card debt, have lost your job, or your mortgage interest rate has risen so you can not make your payments. Do you know what your options are, what the bankruptcy process entails, and how it will affect your credit score? Below is a brief summary of personal bankruptcy law. If you would like to talk to a bankruptcy lawyer about your situation, please contact our Las Vegas office and arrange a consultation.

Bankruptcy alternatives

Federal bankruptcy laws provide two main types of debt relief for individuals: Chapter 7 bankruptcy and Chapter 13 bankruptcy. Eligibility for bankruptcy is based on factors that include a means test, which compares your household income to the median income. Only if your application is filled out correctly and filed properly will you receive the relief you are entitled to. Once your lawyer has filed an application for Chapter 7 or Chapter 13, there will be an automatic stay on some actions: the filing will stop creditor harassment, stop mortgage foreclosure actions, and stop actions to repossess your car. The court will decide what is fair: how much you can pay, whom you must pay, and how large your payments will be.

Chapter 7 bankruptcy liquidation — a "fresh start"

Under Chapter 7 bankruptcy filing, often called a "fresh start bankruptcy," or "straight bankruptcy," the bankruptcy court discharges certain unsecured debts altogether. A bankruptcy trustee appointed by the court will look at the whole picture: your income, your property and your debts, and decide which secured debts will be discharged and which you need to pay. If you are eligible for Chapter 7 debt relief your credit card debt will typically be discharged.

Chapter 13 bankruptcy — debt reorganization

Maybe your overtime was reduced at work, you have fallen behind on payments due to illness or loss of your job, or payments on your adjustable rate mortgage are soaring. If you are employed and make a decent income, but cannot make your monthly payments, you may be eligible for Chapter 13 bankruptcy. Through balance transfers, reduction of payments and other means, debt will be reorganized so you can pay it off in three to five years.

Call 702.880.Debt for strong bankruptcy representation, by an attorney, at a fair price.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.