Just because you are dealing with unexpected financial distress doesn’t mean you should file for bankruptcy. For many individuals, however, bankruptcy could be the only means to resolve their debt situation. A person can rely on Chapter 7 bankruptcy to discharge most of their debts and start afresh. Talking to an attorney can help in understanding your options. If you are in Las Vegas, check https://vohwinkellaw.com to get an appointment with one of their bankruptcy lawyers. In this post, we are discussing key aspects of Chapter 7 bankruptcy.
When to consider Chapter 7 bankruptcy?
If you are more interested in a liquidation plan than working out a repayment plan, Chapter 7 bankruptcy may work for you. Simply put, you need to sell your assets to repay as much of your existing debts as possible while the pending debts are discharged. There is a state median, and if your income is below that, you may be eligible to file for Chapter 7 bankruptcy.
What kind of debts can be discharged through Chapter 7?
If you file for Chapter 7 bankruptcy, you can discharge your credit card bills, personal loans, pending medical bills, unpaid rent, and other unsecured liabilities. However, there are limits to Chapter 7 too. Student loans, government loans, and tax debts cannot be discharged by filing for Chapter 7. If you were paying money for child support, you would still need to pay for these expenses.
Things about filing for Chapter 7 bankruptcy in Nevada
- Once you have filed for Chapter 7 bankruptcy, you get immediate protection from creditors. This means that your creditors cannot harass you any further for payments and unpaid dues.
- As we mentioned, most of your personal and unsecured debts can be discharged through Chapter 7 bankruptcy. You can also work on a repayment plan for non-dischargeable debts.
- The annual median income in Nevada is $68,953 for a household of two. If your income is below that, only then can you file for Chapter 7.
Meeting a bankruptcy lawyer
In your best interests, you may want to find a bankruptcy lawyer for your circumstances. Bankruptcy is a huge decision, and you need to be aware of all your options. A good attorney can advise on important aspects, including how bankruptcy can impact your financial stance in the future. Don’t step back from asking questions, and ensure that your attorney has explained the downside of your decision too.