Chapter 7 Bankruptcy
- Chapter 7 Bankruptcy
Filing Chapter 7 Bankruptcy: Overview and Benefits
With the credit crunch, rising interest rates, company lay-offs, and the economy collapsing under the weight of inflation, it is not an exaggeration to say that a lot of people simply can not maintain all their financial obligations. The question of why a lot of people are in big financial trouble is eclipsed by the greater question of how to remedy it. At Relief Lawyers LLC, we can provide you with the financial relief you need to get a handle on your finances again, and to get a fresh start through bankruptcy relief.
Chapter 7 Bankruptcy Attorney In Las Vegas NV
At Relief Lawyers, we understand the overwhelming stress that financial difficulties can cause. As a leading Chapter 7 bankruptcy attorney in Las Vegas, NV, we are dedicated to helping individuals and businesses find the relief they need through effective legal strategies.
Experienced Chapter 7 Bankruptcy Attorneys
Navigating the complexities of Chapter 7 bankruptcy law requires an experienced attorney who understands the intricacies of the process. As an experienced attorney for bankruptcy, our team at Relief Lawyers is well-versed in all aspects of Chapter 7 bankruptcy, offering personalized legal guidance to help you discharge your debts and start anew. As a trusted bankruptcy lawyer, we will work closely with you to evaluate your financial situation and determine the best course of action.
Comprehensive Bankruptcy Services for Individuals and Businesses
Whether you are facing personal financial struggles or business-related debt, our experienced attorneys for bankruptcy are here to assist you. We provide comprehensive bankruptcy services tailored to the unique needs of individuals and businesses. From filing the necessary paperwork to representing you in court, our business bankruptcy attorneys ensure that the process is handled professionally and carefully.
Achieving Financial Freedom through Chapter 7 Bankruptcy
Chapter 7 bankruptcy can offer a fresh start by eliminating most unsecured debts, allowing you to regain control of your financial future. At Relief Lawyers, we aim to help you achieve financial freedom by guiding you through every step of the bankruptcy process. As your dedicated Chapter 7 bankruptcy attorney in Las Vegas, NV, we are committed to providing the support and professional guidance you need to make informed decisions about your financial future.
If you are considering bankruptcy as a solution to your financial difficulties, Contact Relief Lawyers today. Our team of skilled bankruptcy attorneys is ready to help you navigate the complexities of Chapter 7 bankruptcy law and achieve the fresh start you deserve.
1. Introduction to Chapter 7 Bankruptcy
The term “Chapter 7” is actually taken from the provision of the US Bankruptcy Code it comes from (11 U.S. §§ 701 – 707, Chapter 7-LIQUIDATION). Chapter 7 bankruptcy is one of the two most common bankruptcy types (the other is a Chapter 13 bankruptcy). Chapter 7 bankruptcy can be described as the bankruptcy most people refer to when they use the word “bankruptcy” generically (e.g., “I’m just going to declare bankruptcy”).
Individuals, partnerships, or small businesses who do not have enough income or assets to keep up with all their financial obligations and who have little to no hope for repairing their financial situation, can have their debts discharged or wiped out through a Chapter 7 bankruptcy proceeding. Most of the time those who are forced to file for bankruptcy are simply unlucky, due to certain circumstances such as job loss, accident, injury, illness, medical expenses, overwhelming financial burdens, credit card debt, gambling debts, foreclosure, bank levy, wage garnishment, or judgment.
If the individual, partnership, or small business does qualify for a Chapter 7 (see below), all of the unsecured debts will be discharged upon successful completion of the bankruptcy case, with a few exceptions: e.g., student loans, a large proportion of income tax debt, child support debt, court fines, criminal restitution, civil judgments for fraud or defamation, typically cannot be discharged.
By filing for bankruptcy you can obtain relief from your unsecured debts and have a fresh financial start. Filing for bankruptcy can protect your assets, discharge most of your debts, and clean up your credit report to improve your financial situation in the long run.
2. Eligibility and Requirements (the “Means Test”)
Not everyone qualifies for Chapter 7 Bankruptcy discharge of debts. There are very specific requirements for Chapter 7 eligibility under the US Bankruptcy Code. The US Bankruptcy Code has a “Means Test” which should be analyzed by an attorney, taking into account the Debtors’ use of standard deductions and their income before fling. If the debtors’ family income is less than the Nevada median income, then they automatically qualify for Chapter 7 liquidation, and don’t need to do the second part of the means test. However, if the family household income is higher than the Nevada median income the test looks at whether the debtors have enough income to pay the debts, AFTER deducting the ordinary living expenses and secured or priority obligations such as car loans, mortgage, child support, alimony, student loans, tax payments, etc. If the debtors have enough disposable income left after these deductions to pay at least 25% of the unsecured debts, then the court will likely convert the Chapter 7 case to a Chapter 13 bankruptcy so the debtors can pay some of the unsecured debt through a repayment plan.
3. The Process of Filing Chapter 7 Bankruptcy
The main phases of the bankruptcy process are as follows:
a. Counseling Prior to Filing: Most people who file Chapter 7 are dealing with severe financial hardship which has left them unable to meet their financial obligations and interfering with important aspects of their lives. Money management and financial responsibility counseling, which are available from various agencies and can be completed quickly, on-line, on a free to low-cost basis, are the first steps of the process.
b. Preparing the Filing Package: After you have inquired about bankruptcy relief and made the decision to move forward, it’s time to collect the necessary paperwork and information, and then begin the complex process of knowing what information needs to be presented to the Court and how it should be presented in the bankruptcy filing package. The filing package is submitted to the U.S. Bankruptcy Court that has jurisdiction and venue over the debtor and the bankruptcy estate.
c. Filing and the Automatic Stay: As soon as your filing package is submitted, important things happen nearly instantaneously: A unique bankruptcy case number is assigned by the court, and the “Automatic Stay” goes into effect – this IMMEDIATELY stops all collection efforts and prohibits any and all attempts from your creditors to collect a debt from you or your property. A bankruptcy trustee can also be appointed to a case specifically to administer the assets of the bankruptcy estate. Most people who file bankruptcy do not lose many, if any, assets because of how various allowances and exemptions are applied to the bankruptcy estate.
d. A Meeting of Creditors (341 Meeting): is scheduled by the Court about 30 days after the petition is filed. The court will mail your creditors a notice which informs them of the bankruptcy case, provides information about various court deadlines, and contains the date, time, and location of the Meeting of Creditors. The Meeting of Creditors is not a court hearing and is not very long and rather informal. It is a chance for the Chapter 7 Trustee and the creditors to confirm details about the debts and assets, and obtain more information about the debtors’ financial condition.
e. Complete the Financial Management Course: In addition to the credit counseling course that the debtors are asked to complete before they file for bankruptcy, there is also a financial management course that needs to be completed before discharge of the debts is granted. This course needs to be completed about 60 days after the Meeting of Creditors. The course is fairly short and can be completed in person, on the internet, or over the phone. Once the debtors complete the financial management course, they will receive a Certificate of Completion that needs to be provided to your attorney, who will complete and file an Official Form 423
(“Certification About a Financial Management Course ”) unless the agency who conducted the course files the certificate with the court directly.
f. Discharge of Debts Granted: Congratulations! The discharge is the order from the court forgiving your eligible debts. Discharges may be granted as early as 60 days after the date first set for the Meeting of Creditors. Once the debtors’ discharge is granted, the creditors can no longer attempt to collect any of the debts that were discharged.
4. Benefits of Chapter 7 Bankruptcy with an Attorney
Filing bankruptcy under Chapter 7 takes careful preparation and understanding of comblex legal issues. Misunderstandings of the law or making mistakes in the process can affect your rights under the law. Court employees and bankruptcy judges are prohibited by law from offering legal advice. Filing without an attorney may be difficult for an individual. Filing without professional help may not effectively address issues or reap all the benefits of bankruptcy.
5. Conclusion
Bankruptcy laws exist for a reason. They could be said to serve the greater needs of society rather than the individual. Society’s greater needs – aside from the more obvious need to offer someone another chance – would include protecting certain assets, such as a car, so that the debtor can continue to go to work, pay taxes, and hopefully contribute to the local economy. There are many misconceptions about Chapter 7 bankruptcy and the process. Some people seem to believe that it’s an easy way to get out of paying one’s creditors. That is not the case at all. And, in any case, if the debtor has not been paying on any of his or her debts for several months now, the negative consequences have already begun to happen. Other people believe that it is very difficult for a debtor to qualify for a Chapter 7 bankruptcy. This isn’t true. It is true however, that the process is well-defined, everybody has to follow the same rules, and the process is not always so easy. Contact Relief Lawyers LLC to secure the needed relief from your burdensome debts.
