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Chapter 13 Bankruptcy Filing

Understanding Chapter 13 Bankruptcy In Las Vegas

When debt, bills, and payments become overwhelming, filing for Chapter 13 bankruptcy in Las Vegas can provide a solution. People mistakenly assume that filing for bankruptcy will cause them to lose all their possessions and leave them with nothing, but that is far from the truth. In fact, Chapter 13 bankruptcy allows debtors to manage their debt through a court-approved monthly repayment plan.


What Is Chapter 13 Bankruptcy?


Chapter 13 is one of the most common forms of bankruptcy that allows debtors with a higher income or those hoping to prevent losing personal property to reorganize their debt and make payments through a manageable plan. Chapter 13 provides debtors with an Automatic Stay that prevents creditors from attempting to collect on debts, but it also prohibits harassing action from creditors such as calls, letters, or lawsuits. Chapter 13 Bankruptcy provides the opportunity to avoid foreclosures, repossessions, service shut off or loss of property and belongings.


Qualifying For Nevada Chapter 13 Bankruptcy Repayment Plans


Rather than liquidating property to discharge debts, through Chapter 13 bankruptcy debtors can propose a repayment plan over a three or five year period. The length of an individual repayment plan will be determined based on total and disposable income taking into account property and monthly living expenses.


Typically, three-year repayment plans are given to those with household incomes below the state median, while five-year plans are usually required for those with incomes above the state median. In order to qualify for Chapter 13 bankruptcy in Nevada, you must have a regular income, a total amount of unsecured debt under $394, 725, and a total amount of secured debt under $1,184,200.


A Nevada Bankruptcy Court judge must first approve the proposed payment plan and then the plan is submitted to creditors. Creditors are allowed to object to the plan, however they must allow you to attempt repayment. Chapter 13 cases are assigned to a court-approved, impartial trustee who oversee proceedings and disburse payments to creditors.


How Much Of Your Debt Are You Required To Repay?


Depending on personal circumstances, Chapter 13 repayment plan will require a debtor to repay most, if not all, of their debt. In some situations, debtors are allowed to reduce certain types of secured debt to its current market value rather than paying the total amount owed.


Upon completion of the repayment period, some of the remaining debt, such as credit card or medical bills, could be discharged. There are certain debts that cannot and will not be discharged and must be fully repaid such as:


  • Remaining mortgage debt
  • Student loans
  • Child or spousal support
  • Unpaid tax debt
  • Bankruptcy Filing Cost including attorney, filing, and court fees


Las Vegas Chapter 13 Bankruptcy Filing


If you are considering filing for bankruptcy, call Fair Fee Legal Services in Las Vegas today. Our team of expert bankruptcy attorneys has over 50 years of combined law experience and detailed understanding of the Nevada bankruptcy process.


We offer the best Chapter 13 bankruptcy value in Las Vegas with professional, knowledgeable, experienced, and comprehensive service for $799. Simply call, text, or email us today and we will send you a financial survey that will provide us with the information needed to prepare your bankruptcy filing.


Fair Fee Legal Services
8665 South Eastern Avenue, Suite 101
Las Vegas, Nevada 89123