Bankruptcy Lawyer Frequently Asked Questions.

1. What is Chapter 7?

Chapter 7 is the simplest bankruptcy option. It is typically for people whose income is below a certain threshold based on number of earning members and dependents in the household. A Chapter 7 discharge typically takes 3 months.  Even if you qualify for Chapter 7, there may be advantages to filing Chapter 13 if you have certain specific issues. Contact Us if you have questions.

2. What is Chapter 13?

Chapter 13 is typically for people who have slightly higher incomes. Chapter 13 offers several advantages, so you may consider Chapter 13 even though you may qualify for Chapter 7. These benefits include
(1) Ability to remove second, third etc mortgages if the property is underwater.
(2) Ability to reduce interest rate on your car loan.  Ability to reduce monthly payment further by stretching the payments to a longer term (up to 5 years) up ot the exemption amount.

(3) Principal reduction on car loans if certain conditions are met.
(4) New Mortgage Modification program offered in Nevada.
(5) Principal Reduction on rental properties.
(6) Tax relief under certain circumstances.

(7) Ability to catch up on arrears so you can keep your home.

(8) Avoid repossession of your car.

(9) Clothing and Household goods up to the exemption amount.

3. If I file Bankruptcy, will I lose my home, car and my belongings?

This is a common misconception.  Bankruptcy Law is designed to help people get a fresh start.  Bankruptcy Law provides several exemptions to allow people to keep a reasonable amount of assets so they can get on their feet again.  These are called Exemptions.  Some of the common things you can keep are

1. Your primary home

2. Car worth $15,000 per filer

3. 401k/IRA

4. Household goods up-to $12000 per person

There are other exemptions for jewelry, art etc.

Please consult our office if you are worried about any specific asset.

4. What other fees I should be aware of besides the attorney fees?

The Court filing fees for a Chapter 7 case is $338.

The Court filing fee for a Chapter 13 case is $313.

In addition, the law requires that you take two financial education courses (one before filing, and one after filing).  They typically cost between $10-$30 per course.

Our office can give you a list of several approved providers from which you can choose any.