Chapter 7 Bankruptcy
Our office represents citizens of Las Vegas and Southern Nevada who are experiencing financial difficulties and who can benefit greatly from a Chapter 7 Bankruptcy. The main purpose of filing Chapter 7 bankruptcy (also called "straight" or "liquidation" bankruptcy) is to discharge unsecured debts, such as that from credit cards, personal loans, payday loans, deficiency judgments on foreclosures or repossessions, and medical expenses. This section of the Bankruptcy Code provides for the liquidation of the property in your "estate", usually little or nothing, which is supervised by a trustee appointed by the Court. Usually, most of your assets are exempt from the bankruptcy estate, and you will be able to keep your personal property, retirement assets, automobile, and home.
As a result of the Bankruptcy Code reforms in 2005, individuals wishing to file Chapter 7 must complete the means test, a complex series of calculations which take into account the income of an individual or household for the preceding six months, the median income for the locality, allowable living expenses, and the amount of unsecured debt. The means test is without question the most significant change in the Bankruptcy Code in 2005, and is without question the most complex part of a Chapter 7 bankruptcy.
To pass the means test, your monthly income must be below the median income for your state, or, alternatively, your available monthly income must be very small in proportion to your outstanding unsecured debt. If you fail the means test, then you may be forced to file a Chapter 13 bankruptcy instead. It is imperative that a bankruptcy attorney assist you with this process, as it can become quite complex under the current state of the law.
In Chapter 7 Bankruptcy, you are required to make one court appearance at your 341 Meeting of Creditors, often referred to simply as your "341." Of course, we will be at your side during your 341. Prior to your 341, we will accumulate and submit all the documents that the trustee requires, which simplifies the meeting and often puts clients at ease. The meetings are usually very brief, and the trustee will just ask you a few simple questions regarding your finances and the reasons for your bankruptcy filing. At the conclusion of your 341, all you usually have to do is wait for your bankruptcy discharge.
If you are facing insurmountable debt due to unemployment, hospital bills or other unexpected expenses, and believe that Chapter 7 bankruptcy will give you a new lease on life, please contact us today to set up an FREE initial consultation. Our bankruptcy lawyers are available to represent your case in Las Vegas and throughout Nevada.
