Financial Beginning in General
A new Financial Beginning through Chapter 7 Bankruptcy in Nevada Chapter 7 bankruptcy, also known as “fresh start” bankruptcy, provides debt relief for honest people who are being crushed by overwhelming debt. Many people, from white-collar professionals to blue-collar auto workers, find themselves unable to keep up with credit card, medical or other debts after experiencing job loss, illness, divorce or other circumstances beyond their control.
If this is your situation, Chapter 7 bankruptcy can be an effective method of discharging most of your debt, giving you the fresh start you need. In addition, you will be able to keep your house, car and retirement savings in most cases.
In a Chapter 7 bankruptcy you can realize a new financial beginning. You can wipe out your debts and get a “Fresh Start”. Chapter 7 bankruptcy is a liquidation where the trustee collects all of your assets and sells any assets which are not exempt. (see Nevada Exemptions) The trustee sells the assets and pays you, the debtor, any amount exempted. The net proceeds of the liquidation are then distributed to your creditors with a commission taken by the trustee overseeing the distribution.
Certain debts cannot be discharged in a Chapter 7 bankruptcy, such as alimony, child support, fraudulent debts, certain taxes, student loans, and certain items charged. (see Nevada Non-Dischargeable Debts) In most Chapter 7 bankruptcy cases, the debtor has large credit card debts and other unsecured bills and very few assets. In the vast majority of cases a Chapter 7 bankruptcy is able to completely eliminate all of these debts.
You may keep certain secured debts such as your car or your furniture or house by reaffirming those debts. To do so, you must sign a voluntary “Reaffirmation Agreement”. If you decide that you want to keep your house or your car or your furniture, and you reaffirm the debt, you cannot bankrupt (or wipe-out) that debt again for eight years. You will still owe that debt and you must continue to pay it just as you were obligated to continue to pay it before you filed bankruptcy.
In order to reaffirm the debt, you must also bring it current. In other words, if you are three or four months behind, then you must pay the back payments which are due in order to reaffirm it. You can selectively reaffirm your debts – you can state that you wish to keep the house and the furniture, but that you want the car and the jewelry to go back to the respective Creditors.
For a new financial beginning, reaffirmation agreements can be set aside during the earlier of 60 days after the agreement is filed with the Court, or upon the Court’s issuance of an Order of Discharge.
When you work with us, we will begin by taking inventory of your financial situation and determine if you meet the income, asset and other eligibility requirements to qualify for Chapter 7 bankruptcy. We will take the time to explain the pros and cons of this option, as well as answer your questions about the legal process. If filing for Chapter 7 makes legal and practical sense for you, we will prepare your petition and financial schedules and proceed to file them with the bankruptcy court.
To obtain a fresh financial beginning at this point, an automatic stay will go into effect. This is a powerful debtor protection that requires creditor collection activity to cease, stopping calls, letters, home foreclosure actions and repossessions including stopping Any further communications from your creditors will have to go through our office instead. Chapter 7 bankruptcy is effective in eliminating many kinds of debt, including:
- Credit Card Debts
- Medical Debts
- Lawsuits and Judgments
- Pursuit of deficiencies after mortgage foreclosures or trustee sale
About 40 days after we file, we will attend a hearing with you called the “first meeting of creditors.” This is a court hearing where the chapter 7 bankruptcy trustee will review your petition and schedules and ask questions. Creditors, while invited, usually do not attend these meetings. This hearing is informal and nothing to worry about – Mr. Harris will be at your side. After this meeting, creditors have the opportunity to object to discharge of your debt and the trustee has the final opportunity to ask any more questions.
Approximately 90 days after the creditors’ meeting, the bankruptcy court will issue an order discharging your debts. Following the discharge, the administrative portion of your case continues for a year or more; however, your involvement as a debtor is largely over during that phase.
For over 45 years, Harris Law has successfully filed over 5,000 cases for people just like you. We understand and navigate the details of the Chapter 7 bankruptcy process. If Chapter 7 is not available to you because you exceed income or asset limits Chapter 13 or Chapter 11 may offer an effective debt relief solution. Call the Harris Law office today at 775-786-7600 for a free consultation, also visit our new Facebook Page for more information.