Bankruptcy Process

If you are considering filing for bankruptcy, you may have many questions about the bankruptcy process. Unfortunately, many people avoid filing because they assume the process is complicated, but an experienced bankruptcy attorney can make filing for bankruptcy and getting your discharge very straightforward.

Chapter 7 Bankruptcy Process

The Chapter 7 bankruptcy process begins by making sure you qualify. This will require a review of your financial information, a good understanding of your debts and assets, and an analysis of your income over the last six months. A bankruptcy lawyer in Nevada can review your financial situation for you and apply for the means test, which the court uses to compare your average income over the last 6 months to the median income for a household of your size. If your income is lower than the median, the means test is complete. If it’s higher, an additional step is necessary to determine how much disposable income you have after paying for essentials. A bankruptcy lawyer will help with this.

You will also need to undergo credit counseling within 6 months before you file for bankruptcy. The certificate of credit counseling must be filed with the bankruptcy petition to prove to the court that you have gone through counseling as required. There are only two situations where a debtor can be exempted from filing the certificate of credit counseling. In these situations, debtors must provide one of the following:

• A different certificate that describes exigent circumstances that permit a waiver of the requirements of credit counseling. This certificate must state that the debtor requested credit counseling but was unable to obtain counseling during the 7-days prior to filing. OR
• A debtor can request in writing and provide a notice that they are unable to obtain credit counseling as a result of a disability, being incapacitated, or that they are on active military duty in a combat zone.

Once your paperwork is gathered, your attorney will prepare your bankruptcy petition. A bankruptcy petition and several forms will be filed with the bankruptcy court. This enacts the automatic stay protection to keep creditors from taking or continuing any action against you.

The next step is attending a meeting with the trustee called the 341 meeting of creditors. This takes place about 30-45 days after you file and the trustee will ask questions about your petition while you are under oath. Your attorney can represent you during the hearing.

From this point, you will need to follow up on any questions or requests the trustee may have. When the bankruptcy is successful, your debt is discharged. Discharge usually takes place 4-6 months after you file.

Chapter 13 Bankruptcy Process

The process with a Chapter 13 bankruptcy is quite different. You will work with your bankruptcy attorney to propose a reasonable repayment plan to the bankruptcy court. This repayment plan will be based on the amount and types of debt you have, your disposable income, and your assets. Your bankruptcy lawyer can help you cure any defaulted loans on your car or home and require the lender to cure the payments over your 3-5 year repayment plan.

As with Chapter 7, filing for Chapter 13 enacts the automatic stay protection to stop repossession, foreclosure, garnishment, lawsuits, and harassing phone calls.

Contact a Las Vegas Bankruptcy Attorney

Are you considering filing for bankruptcy protection? An experienced Nevada bankruptcy lawyer can walk you through the process and help you understand your options. Contact Vegas BK for a free consultation about filing bankruptcy.