Bankruptcy FAQ
The Las Vegas and Henderson law firm of Peters & Associates, LLP provides the following answers to questions that our attorneys frequently encounter as they advise people considering filing a Chapter 7 or Chapter 13 bankruptcy in the U.S. Bankruptcy Court for the District of Nevada. If you have other questions or need advice and representation with a particular bankruptcy or debt settlement matter, please contact Peters & Associates, LLP for a free consultation.
Q. Can I get a credit card after bankruptcy?
A. Yes. Within only a few months you may be able to obtain a major credit card. At the very least, you may obtain a secured credit card and work your way toward an unsecured card. See our page on Recovering From Bankruptcy for more information.
Q. Can I buy a home with a bankruptcy on my record?
A. A bankruptcy on your record will not prohibit you from buying a home, but it may affect the interest rate you can get from a lender willing to finance your mortgage. Again, follow the tips on our Recovering From Bankruptcy page to rebuild your credit and show a bank or other potential lender that you can meet your financial responsibilities.
Q. Can I keep my car?
A. In most cases, yes. In fact, you may have several options available. You may be able to exempt a certain amount of equity in your car as a Chapter 7 exempt asset. You may also either affirm the debt and keep it out of bankruptcy, or you may redeem the car by buying it from the lender at its fair market value. In some cases, it makes better sense not to keep the car. Go over your options with an experienced bankruptcy attorney to decide what is best in your particular situation.
Q. Can I keep my home?
A. If filing Chapter 7, you can exempt a certain amount of equity in your home from the liquidation process, which may prevent its sale. You can also keep your home if you file Chapter 13, which does not require any selling off of assets. Chapter 13 can also be used to prevent foreclosure on your home.
Q. What is the Means Test?
A. If your household income is above the state median in your area, you may be ineligible to file for Chapter 7. A means test will calculate your current monthly income and expenses to determine if you qualify. If you are ineligible to file Chapter 7, you may still obtain relief from Chapter 13.
Q. What is the difference between Chapter 7 and Chapter 13?
A. In Chapter 7 you receive a discharge of debts without having to repay them, while Chapter 13 involves a three or five-year payment plan. There are pros and cons to each approach. Contact our office to discuss which option is right for you.
