View Post

The Bankruptcy Discharge: What You Need to Know

During the 12-month period that ended September 30, 2018, more than 760,000 Americans filed for bankruptcy under Chapter 7 or Chapter 13 of the U.S. Bankruptcy Code. These Americans were facing seemingly insurmountable debts, but the bankruptcy process offered them a way out. The way bankruptcy does so is through the discharge, a court order that terminates a debtor’s liability …

View Post

What are the Bankruptcy Exemptions in Nevada?

Last year, more than 8,000 Nevadans filed for bankruptcy under Chapter 7 or Chapter 13 of the U.S. Bankruptcy Code. Bankruptcy is a legal process through which Americans struggling with overwhelming debt can obtain some relief. At the end of the process, the debtor receives a bankruptcy discharge, which is a court order terminating his or her obligation to repay …

View Post

Chapter 7 or Chapter 13 Bankruptcy: What’s the Difference?

When individuals file for bankruptcy, one of the first choices they must make is under which chapter of the Bankruptcy Code to file their case. In general, individuals choose to file either under Chapter 7 or Chapter 13. Each of these chapters provides its own set of rules and offers different advantages and disadvantages for debtors. If you’re considering filing …

Debts that are discharged in Chapter 13, but not in Chapter 7

Some debts are discharged at the end of Chapter 13 case which cannot be discharged in a Chapter 7 bankruptcy. Chapter 13 is a payment plan bankruptcy, and creditors are repaid over three to five years. That’s a long time for a debtor to remain in bankruptcy, so Congress has placed a few “carrots” to entice individuals to file Chapter …

How Chapter 7 Bankruptcy Affects Child Support Arrears

Experiencing money troubles can touch every aspect of your personal life. When there is not enough cash to go around, the typical person starts prioritizing financial obligations. A person might cut back on food and clothing expenses, cut out recreational or entertainment spending, or may pay some bills late. When there is little or no money due to a loss …

Using Student Loans to Qualify for Chapter 7 Bankruptcy

In 2005, Congress changed the bankruptcy laws to include a new “means test” for consumer debtors. The purpose of the means test is to ensure that debtors are not “abusing” the bankruptcy system by unfairly discharging debts they can afford to repay. The means test is a gatekeeper for Chapter 7 bankruptcy and disqualifies certain high income debtors from Chapter …

Upside Down Property During Chapter 7

There are many bankruptcy strategies to assist honest debtors obtain a fresh start. One of the best tactics for Chapter 7 debtors is found in section 722 of the Bankruptcy Code: redemption. Redemption is only available to Chapter 7 filers. It allows the debtor to redeem secured collateral for an amount equal to the secured portion of the loan. In …

Answering Chapter 7 Trustee Questions at the 341 Meeting

Your Chapter 7 bankruptcy meeting of creditors (also called the “341 meeting” or “trustee’s meeting”) can be intimidating. Fortunately, you have selected experienced counsel and have cooperated to provide honest and accurate financial information. At this point your attorney has a good handle on the case, but one wildcard still remains: your nervousness. When people get nervous they often either …

What Happens to a Personal Business in Chapter 7 Bankruptcy?

When an individual files for Chapter 7 bankruptcy protection, all of the debtor’s assets become part of a bankruptcy estate that is overseen by a bankruptcy trustee. The trustee is tasked, among other things, with liquidating any non-exempt asset for the benefit of creditors. But what happens when an individual has a privately owned business? If the business is incorporated, …

What Can the Chapter 7 Trustee Take During Bankruptcy?

A Chapter 7 case is an erase-your-debts-and-start-fresh bankruptcy. A bankruptcy trustee is appointed to liquidate assets and pay unsecured creditors. That begs the question that every debtor asks his attorney: What can the trustee take? The answer is non-exempt (unprotected) assets. An exemption is a legal protection that shields the equity in your property from creditors (including the Chapter 7 …