One of the main purposes of Bankruptcy Law is to give a person who is burdened with
debt a fresh start.
A Chapter 7 bankruptcy wipes out all of a person's eligible debts. In the vast majority
of cases the debtor has no assets that he or she will lose because State and Federal
exemptions protect those belongings. Chapter 7 bankruptcy gives a person a relatively
quick "fresh start" and a great opportunity to rebuild quickly.
A Chapter 13 Bankruptcy is a valuable tool to protect those debtors with assets that
are not protected under a chapter 7. In a Chapter 13 case a debtor is able to protect
virtually all of the assets that they posess including multiple homes, cars, and many
other classes of posessions.
There has been much doom and gloom written about the new bankruptcy laws and
how much more difficult it's going to be to file Chapter 7 bankruptcy. It is true that
there are more hoops tojump through under the new bankruptcy laws and it's true
that some people are going to have to file Chapter 13 bankruptcy instead of Chapter
7 bankruptcy. However, for the vast majority offilers, Chapter 7 is still available with
very little extra effort!
We are confident that you will be elated with the services and professionalism of our
Las Vegas Nevada, Salt Lake City Utah and St. George Utah Bankruptcy attorneys and
staff. Call today to make an appointment for a free consultation and get started on a
fresh start today!FREQUENTLY ASKED QUESTIONS What happens when I file a chapter 7 bankruptcy?
You commence a chapter 7 bankruptcy proceeding by filing a "petition" with
the bankruptcy court. The person filing a Chapter 7 is referred to as the "debtor.
"The debtor is required to disclose to the court all his or her property and debts
and turn over all nonexempt property to the bankruptcy trustee, who then
converts it to cash for distribution to the creditors. The debtor then receives a
discharge of all dischargeable debts. | | | What are the most common reasons for a Chapter 7 bankruptcy?
The most common reasons for a Chapter 7 bankruptcy are unemployment;
large medical expenses; seriously over-extended credit; marital problems and
other large unexpected expenses. | | | What are the most common reasons for a Chapter 13 bankruptcy?
The most common reasons for a Chapter 13 are to catch up past due
mortgageor car loan payments and keep their assets. Also, the debtor can pay
most non-dischargeable federal taxes over the term of the Chapter 13 plan
without interest. | | | What are the most common reasons for a Chapter 13 bankruptcy?
Individuals may file chapter 13 bankruptcy petitions if they reside, have a
domicile, a place of business, or property in the United States, or a municipality,
have a source of regular income, and on the date the petition is filed owe less
than $250,000 in non contingent, liquidated, unsecured debts and less than
$750,000 in non contingent, liquidated, secured debts. Corporations and
partnerships may not file a chapter 13 bankruptcy. | | | Will the bankruptcy stop bill collectors from calling?
Yes. The automatic stay prevents bill collectors from taking any action
to collect debts. | | | How long after filing will the creditors stop calling?
Once a creditor or bill collector becomes aware of a filing for bankruptcy
protection, it must immediately stop all collection efforts. After you file the
bankruptcy petition, the court mails a notice to all the creditors listed in your
bankruptcy schedules. This usually takes a couple of weeks. Creditors will also
stop calling if you inform them that you filed the bankruptcy petition, and
supply them with the "docket number" for your case. In some cases, we will
contact the creditor immediately upon filing the bankruptcy petition, especially
if a lawsuit is pending. If a creditor continues to use collection tactics once
informed of the bankruptcy they may be liable for court sanctions and
attorney fees for this conduct. | | | Who deals with my creditors and bill collectors during the bankruptcy?
We deal with all creditors. | | | Will my employer and landlord find out about my bankruptcy?
Bankruptcy petitions are public records. However, under normal
circumstances, unless your employer or landlord is a creditor, they will not
know you filed a bankruptcy petition. If your employer or landlord is a
creditor it must be listed as a creditor on the schedules and receive notice
of the bankruptcy proceeding. Chapter 13 debtors are required to make
payments through wage deduction order and your employer will learn
about the bankruptcy. | | | Does the spouse of a married person also have to file bankruptcy?
No. In some cases where only one spouse has debts, or one spouse has
debts that are not dischargeable then it might be advisable to have only one
spouse file. If the spouses have joint debts, the fact that one spouse
discharged the debt may show on the other spouses credit report. | | | Can I keep any credit cards?
Under some circumstances you may be able to keep some credit cards if the
creditor agrees. There are many factors, which must be considered. Some of
those include the credit card balance at the time of the bankruptcy, what the
credit card company is willing to do and your ability to pay the present and
future credit card debt. | | | What happens to my personal property, real property and other assets?
Often, all of your assets can be protected. Your assets will either be
"excluded" from the bankruptcy or "exempted," and you will be able to keep
that property. However, if any question exists regarding protection of your
assets, we will make sure to ensure that the exemptions are properly chosen
and applied to maximize the value of assets retained. | | | Can I keep my home and automobile?
In many cases you can retain your home and automobile in a chapter 7
bankruptcy proceeding. You will lose your home or automobile in a chapter
7 if you are behind in making payments on a loan secured by the home or
automobile and cannot reach a payment agreement with the creditor, if the
home or automobile has no equity, or the home or automobile has equity in
excess of what you are allowed to exempt. If either of these two conditions
exists, you might consider filing a chapter 13 petition, which allows you to
develop a plan for repaying your creditors without necessarily liquidating
assets. | | | Can I keep my pension plans?
The United States Supreme Court has held that pension plans, 401(k)
plans, and other "ERISA-qualified plans" are generally "excluded" from
the bankruptcy. | | | Can I keep my IRA account?
Yes. | | | What happens to my credit?
The bankruptcy filing is picked up and noted by several commercial
credit reporting companies. Federal law limits the length of time that
this information may be carried on a report. The limit on reporting
bankruptcy filing is 10 years. Also, the law prevents certain governmental
units and agencies from discriminating against persons who have filed
bankruptcy. | | | Can bankruptcy stop foreclosure on my home?
In a Chapter 7 bankruptcy, the foreclosure action will temporarily stop
until you get a discharge or before if the mortgage company receives relief
from the automatic stay.In a Chapter 13 bankruptcy, the foreclosure action
is permanently stopped as long as the arrears and monthly mortgage
payments are kept current trough a confirmed Chapter 13 Plan. | | | What kind of debts does Bankruptcy eliminate?
In a Chapter 7, almost all unsecured debts with certain exceptions such
as your most recent 3-years of income tax liabilities, student loans,
alimony and child support obligations. Chapter 7 does not eliminate secured
debts, except for liens on personal property that are redeemed for the fair
market value of the collateral in the bankruptcy.In Chapter 13, all debts
dischargeable in a Chapter 7, plus you get a super discharge. This means
that certain debts that are non dischargeable in Chapter 7 are discharged
in Chapter 13. You can also modify the rights of secured creditors in
Chapter 13, which means that you can strip down a lien to the value of the
collateral such as a car in your Chapter 13 payment plan. | | | Do I need to list all my debts?
Yes. However credit cards with zero balance are not considered debts. | | | Does Chapter 7 or 13 stop lawsuits and judgments?
Yes, immediately when we file your case. There are certain exceptions to
this rule. One major exception is for child support enforcement suits. | | | Can I get out of a contract?
Bankruptcy generally cancels unwanted contracts if you discontinue the
service and/or return the merchandise. | | | Can you stop wage garnishment?
Yes. Garnishment will stop when your case is filed. However there is one
exception for child support enforcement suits. | | | Can you stop auto repossession?
In a Chapter 7, the bank cannot repossess your car once you have file
bankruptcy. You must, however, get the payments current before the case
is finished or before the bank receives permission from the bankruptcy judge
to repossess.
In a Chapter 13, You can cure defaults on your car loan or even lower the
payments on your car loan in Chapter 13. We also make the bank return the
car if it was repossessed within 10 days before you filed your bankruptcy. | | | What about back child or spousal support?
A Chapter 7 bankruptcy cannot protect you after the discharge. Child and
spousal support and alimony are non dischargeable debts.
In a Chapter 13 bankruptcy, you pay back child and spousal support in full,
without further interest, in your payment plan. | | | What about back taxes?
In a Chapter 7 bankruptcy, secured taxes, such as property taxes, cannot
be discharged. Unsecured taxes, such as income taxes, may be discharged if
the taxes are 3 years old, you filed your tax return timely, and you have not
been assessed in the prior 240 days.
In a Chapter 13, you pay back taxes without interest, in your payment plan. | | | What happens to my student loans?
In a Chapter 7 bankruptcy, student loans may be discharged if you are
able to demonstrate hardship, which is not easy to do.
In a Chapter 13 bankruptcy, you can pay student loans without interest,
in your payment plan. | | | Can I use my credit cards while in Chapter 7 or 13?
In a Chapter 7 you cannot use them until you receive a discharge.
In a Chapter 13, you must get court permission to incur debt over $250,
except in emergencies. | | | How long will I be in Chapter 7 or 13?
A Chapter 7 bankruptcy takes about 5 months, although your dischargeable
debts are gone the day we file your case.
A Chapter 13 takes 3 to 5 years for you to repay debts unless you are able
to repay faster. | | | How can I rebuild my credit after bankruptcy?
Many people find that if, after filing bankruptcy, they promptly make the
payments they are left with such as car payment, house payments, rent or
utility payments, they can re-establish their credit ratings in about one and a
half to two years' time. However, individual credit ratings are based on overall
credit history, as well as income and assets, and it may be harder for some
people to re-establish a good credit rating than it is for others. | | |
NEVADA BANKRUPTCY EXEMPTIONSASSET | EXEMPTION DESCRIPTION | LAW SECTION | Homestead | Real property or mobile home to $500,000 (husband and wife may not double)Must record homestead declaration before filing for bankruptcy. | 21.090(1) (m), 115.010115.020 | Insurance | Annuity contract proceeds to $350 per monthFraternal benefit society benefitsGroup life or health policy or proceedsHealth proceeds or availsLife insurance policy or proceeds if annual premiums not over $1000Life insurance proceeds if you?re not the insured | 687B.290695A.220687B.280687B.27021.090(1) (k)687B.260 | Miscellaneous | Property of business partnership | 87.250 | Pensions | ERISA-qualified benefits to $550,000Public employees | 21.090(1) (q)286.670 | Personal Property | Appliances, household goods, furniture, home and yard equipment to $12,000 individual/ $24,000 joint totalBooks to $1500Burial plot purchase money held in trustFuneral service contract money held in trustHealth aidsKeepsakes & picturesMetal-bearing ores, geological specimens, art curiosities or paleontological remains, must be arranged, classified, catalogued & numbered in reference booksMotor vehicle to $15,000; no limit if vehicle equipped to provide mobility for disabled personOne gun | 21.090(1) (b)21.090(1) (a)452.550689.70021.090(1) (p)21.090(1) (a)21.10021.090(1) (f), (o)21.090(1) (i) | Public Benefits | Aid to blind, disabled, AFDCIndustrial insurance (workers? compensation)Unemployment compensationVocational rehabilitation benefits | 422.291616.550612.710615.270 | Tools of Trade | Arms, uniforms & accouterments you?re required to keepCabin or dwelling of miner or prospector; cars, implements & appliances for mining claim you work to $20000 totalFarm trucks, stock, tools, equipment & seed to $4500Library , equipment, supplies, tools & materials to $4500 | 21.090(1) (j)21.090(1) (e)21.090(1) (c)21.090(1) (d) | Wages | Minimum 75% of earned but unpaid wages; bankruptcy judge may authorize more for low -income | 21.090(1) (g) | Wild Card | $1000.00 individual / $2000.00 joint exemption towards any asset | |
Piet & Wright is a debt relief agency under the terms of the BAPCPA amendments of 2005.
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