Chapter 7 bankruptcy in Las Vegas
Chapter 7 is often called liquidation bankruptcy. To qualify, you generally must pass a means test. If you qualify, certain debts may be discharged, which means you are no longer legally required to pay them.
A Chapter 7 bankruptcy attorney can help complete the paperwork, file it with the court, communicate with the trustee, and help you understand Nevada exemptions that may protect property from liquidation.
The benefits of Chapter 7
- You can keep future income you earn after filing.
- You may stop creditor harassment.
- You may prevent or stop wage garnishment.
- You may avoid or pause lawsuits tied to dischargeable debts.
- You do not enter a long repayment plan like Chapter 13.
- Many unsecured debts may be discharged.
What steps should you prepare for?
Before filing Chapter 7, your attorney will walk you through the process so you understand what is required and how to prepare.
01
Credit counseling
Before filing, you must complete an approved credit counseling course. Many approved courses can be taken online.
02
The means test
Nevada uses a means test to determine Chapter 7 eligibility. If your income is below the median for your household size, you may qualify more easily.
03
Filing paperwork
Your bankruptcy paperwork includes income, expenses, debts, loans, assets, and property. Accuracy matters, and we help gather the details.
What debts can Chapter 7 erase?
Debts that can be erased are called dischargeable debts. Every case is different, but common dischargeable debts may include:
- Credit card debt
- Medical bills
- Utility bills
- Some personal loans
- Certain car loan deficiency balances
Recovering with the automatic stay
When a bankruptcy case is filed, the automatic stay generally goes into effect. This can stop many collection calls, letters, wage garnishments, and lawsuits while the case is pending. If creditors continue to contact you after filing, notify your attorney immediately.
How do I know when it is the right time to file?
Chapter 7 may be worth discussing if you are unable to keep up with necessary monthly expenses, worry about wage garnishment, have unsecured debt you cannot realistically repay, or do not own a lot of expensive nonexempt property.
Your financial situation now can affect your future. A consultation can help you decide whether filing now, waiting, or considering another option is the smarter move.
Chapter 7 bankruptcy and student loans
Student loans are often not discharged automatically in Chapter 7, but the answer is not always a simple yes or no. In some circumstances, student loan debt may be discharged if repayment would create an undue hardship.
Courts may consider whether repayment prevents a minimal standard of living, whether your financial circumstances are likely to continue, and whether you have made a good-faith effort to repay. If student loans are part of your debt picture, we can talk through what may or may not be possible.
Begin a new financial start
Filing bankruptcy does not have to feel impossible when you have a Chapter 7 bankruptcy attorney by your side. If you want to understand the process, find out whether you qualify, and learn what a fresh start could look like, call Fair Fee Legal Services today.
