Chapter 7 Bankruptcy
In Las Vegas and Henderson, Nevada, the attorneys at Peters & Associates, LLP help consumers free themselves from the burden of overwhelming debt and start over with a clean slate through the help and protection afforded by a Chapter 7 bankruptcy proceeding.
What is Chapter 7?
In a Chapter 7 straight bankruptcy, the debtor's non-exempt assets are sold to pay off creditors in a certain priority order. Once those assets have been sold and the proceeds disbursed, any remaining debts are discharged by the bankruptcy court. The debtor emerges from the bankruptcy virtually debt-free, ready to make a fresh start.
A common misconception is that people have to sell off everything own before they can receive a discharge of debt. This is not so. The law provides numerous exemptions for many of your assets, including certain amounts for your home, car, jewelry, clothing, tools of the trade, household furnishings and other necessities. Many so-called Chapter 7 "liquidations" are actually no-asset bankruptcies, where all of the debtor's eligible property is exempt, and nothing is sold at all. Your lawyer can help you determine which assets, if any, will need to be sold in bankruptcy.
Keep in mind, however, that not all debts are dischargeable in bankruptcy. For instance, student loans and government loans and certain tax debt are not generally dischargeable, and domestic relations orders such as child support obligations cannot be discharged. Again, a qualified bankruptcy attorney can analyze your existing debt and let you know what a Chapter 7 can and can't do for you.
When is Chapter 7 Right For Me?
Chapter 7 is most attractive to consumers with a large volume of unsecured debt, such as credit card debt or medical bills. A Chapter 7 filer will also need to have a monthly household income below the state median or satisfy a means test that shows your disposable income is low enough that you qualify for Chapter 7. If you are not eligible to file for Chapter 7, or if your debt is mostly secured by property that you wish to keep, such as your home, you may want to consider filing Chapter 13 instead.
Our attorneys will meet with you personally and take the time to understand your unique situation and advise you on whether Chapter 7 or Chapter 13, or even a non-bankruptcy solution such as debt settlement, is best for you. In the Las Vegas and Henderson area, contact Peters & Associates, LLP for a free consultation.
