Chapter 13 Bankruptcy in Las Vegas

Chapter 13 bankruptcy is yet another powerful tool available to help manage financial crisis. A Chapter 13 bankruptcy allows for manageable monthly payments typically paid over a 3-5 year period, and can often provide relief not available through any other form of bankruptcy or debt relief. (Click here for our Bankruptcy FAQ's)

An individual may wish to file Chapter 13 bankruptcy if:

1. the individual does not pass the means test and therefore cannot file Chapter 7 bankruptcy;

2. the individual has fallen behind on secured debt payments (such as a mortgage or auto loan), and wishes to get caught up on the payments, keep the secured collateral (the house or the car), and avoid repossession or foreclosure;

3. the individual has become a victim of the recession and housing crisis, and wishes to reduce the amount owed on their home by stripping off the second mortgage;

4. the individual has non-exempt assets which would be subject to liquidation in Chapter 7 bankruptcy but would prefer to keep these assets;

5. the individual has non-dischargeable debts (read up on non-dischargeable debts in our FAQ's).

6. all of the above.

Filing Chapter 13 bankruptcy will help protect your assets from foreclosure and repossession. It will also discharge your unsecured debts just like Chapter 7 bankruptcy. The difference is, in Chapter 13 bankruptcy, you are required to make a monthly plan payment. A Chapter 13 bankruptcy, sometimes referred to as personal reorganization, is essentially consolidating your debt into one monthly payment. Subject to a bankruptcy trustee's approval, we propose a Chapter 13 plan that will allow you to make affordable monthly payments and generally pay off the debt within three to five years. Whatever portion of you debt is not paid off becomes discharged at the end of your bankruptcy. It is possible in Chapter 13 to literally pay pennies on the dollar and discharge the rest of your debt.

Certainly the amount of your Chapter 13 plan payment, as well as the length of your plan, are important questions in Chapter 13 bankruptcy. The length of your plan is determined by comparing your income to the Nevada median income for a household of the same size as your own. If you are "over median", then you are forced into a five year plan, and must pay all of your disposable income to your unsecured creditors. Your disposable income is calculated by deducting some of your actual monthly expenses along with some statutory standards. After all the expense deductions are made, you are left with your disposable income. If you are "under median" you can have a plan as short as three years.

Just like in Chapter 7 bankruptcy, in Chapter 13 bankruptcy you are only required to make one court appearance for your 341 Meeting of Creditors, often referred to simply as your "341." Prior to your creditors meeting, 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.

If you are looking to catch up on mortgage payments, pay non-dischargeable debts, remove a second mortgage, or pay off unsecured debts while keeping non-exempt assets, then Chapter 13 bankruptcy may be right for you. For more information on filing bankruptcy in Nevada, please contact us today to set up a FREE initial consultation.