If the amount of debt and bills you have to pay each month have become too much for you to handle on your own, filing for Chapter 7 bankruptcy in Las Vegas could help you manage or even eliminate some of that debt. Bankruptcy is not a magical solution that gets you out of debt, but it can provide a solution with manageable actions.
What Is Chapter 7 Bankruptcy?
Chapter 7 is a liquidation bankruptcy option for people with a limited income providing an opportunity to eliminate some types of unsecured debt. In order to eliminate debt through Chapter 7, Nevada bankruptcy court will assign a trustee to oversee control of many, if not most, of your non-exempt possessions. This trustee sells your possessions or assets and then distributes the money to creditors that have filed claims. Under Chapter 7, you are allowed to keep certain items that are considered exempt property.
Qualifying For Chapter 7 Bankruptcy In Nevada
Those with a limited income that falls below the state’s median have the best opportunity to qualify for Chapter 7 bankruptcy in Las Vegas. In order to qualify, you will also be required to pass a means test that is used to determine if you have enough disposable income to repay your debts rather than liquidate them through bankruptcy.
If your household income is above the state median or a judge has determined that you have the means necessary to make payments on your debt, your Chapter 7 filing could be denied. In limited circumstances, you might be allowed to file for Chapter 7 depending on your personal situation, even if your household income is above the median. In other cases, you might be able to file for a Chapter 13 Bankruptcy instead
What Debt Can Be Liquated Under Chapter 7?
Types of unsecured debt that qualify for liquidation or discharge include credit card balances, loan payments, or medical bills. You will not be able discharge debts such as child support, spousal support, tax debt, or student loans. In some cases, unsecured debt remaining after liquidation could be discharged, however secured debts are not eliminated.
What Property Will I Lose If I File For Chapter 7 Bankruptcy?
In order to pay your debt, your non-exempt property is sold, but there are exemptions that will protect certain types of property and assets. Each state has it own exemption laws and the federal government also has exemption laws in place. Some states allow filers to choose between state or federal exemptions, however the state of Nevada requires you to use their state exemptions. The only exception to this applies for people who have very recently moved to the state.
Examples of non-exempt property (or property you will not be able to protect) can include:
- Personal belongings
- Expensive Clothing
- Valuable collector items or art
- Property not considered your primary home
- New vehicles with equity
- Instruments or tools that aren’t used for work
What Are Bankruptcy Exemptions in Las Vegas?
There are items of personal property that are considered exempt from Chapter 7 liquidation. The trustee assigned to your case will not be able to sell property and assets under Nevada exemptions. There are also limited values on exemption property. Fortunately, in a number of Chapter 7 cases, a vast majority of the property can be covered by an exemption and filers do not lose as much property as expected. This will be greatly dependent on your personal assets and circumstances, so do not assume that this will be the case for you.
Examples of property exemptions in the state of Nevada include:
- Homestead – up to $550,000 in equity of a house, condo, or mobile home
- Vehicles – up to $15,000 of equity
- Vehicles equipped or modified for permanent disabilities – unlimited equity
- Personal property
- up to $12,000 in necessary household goods, furniture, appliances, electronics, clothing, yard equipment
- up to $5000 in books, jewelry, musical instruments, and art
- all family pictures or keepsakes
- medically prescribed heath aids,
- up to $4500 in farm tools, vehicles, equipment, and stock
- up to $10,000 in items used for the debtor’s trade or business including tools, equipment, supplies, materials, books, and any uniforms or arms you are required to keep
- one gun
- up to $16,150 in personal injury compensation or restitution from personal injury or wrongful death
- Retirement accounts – fully exempt for state employee’s, most tax-exempt retirement accounts, up $1,283,025 in IRAs and Roth IRAs
- Wages – 75% of disposable earnings or amount equal to 50 times federal minimum wage
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 7 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
8872 S Eastern Ave Suite 265 Las Vegas, NV 89123