According to the American Bankruptcy Institute, more than 5,000 people file for Chapter 7 bankruptcy each year in Nevada. Another 1,200 residents file for Chapter 13. Unfortunately, these numbers keep increasing each year. If you are struggling with debt, contact a bankruptcy attorney to find out which option may be the best for your situation. Even if you are facing foreclosure or vehicle repossession, bankruptcy may be your best option.
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In Las Vegas, Nevada, individuals and businesses have several options for filing bankruptcy, primarily under Chapter 7, Chapter 11, and Chapter 13 of the Bankruptcy Code. Chapter 7, often referred to as liquidation bankruptcy, allows for the discharge of most debts while non-exempt assets are liquidated to repay creditors. Chapter 13, known as a wage earner's plan, enables individuals with regular income to develop a plan to repay all or part of their debts over a period of three to five years. Chapter 11, typically used by businesses and sometimes by individuals with significant debts and assets, involves reorganizing debts and creating a plan to repay creditors while keeping the business operational.
Filing for bankruptcy in Las Vegas will have a significant impact on your credit score, with the exact effect depending on your current credit status and the type of bankruptcy filed. A Chapter 7 bankruptcy can remain on your credit report for up to 10 years, while a Chapter 13 bankruptcy stays for up to 7 years. Although bankruptcy can lead to an initial decrease in your credit score, many individuals find that their scores begin to recover over time as they are relieved from their debt burden and can start rebuilding credit responsibly.
Whether you can retain your home and car through bankruptcy in Las Vegas depends on the type of bankruptcy filed and the specific circumstances of your case. Under Chapter 7, Nevada's exemption laws allow you to keep certain assets, including equity in your home and vehicle, up to a specific value. If the equity in your property exceeds these exemption limits, the assets might be sold to repay creditors. In Chapter 13 bankruptcy, you are more likely to keep your assets as long as you continue to make payments according to the reorganization plan.
Not all debts can be discharged through bankruptcy in Las Vegas. Non-dischargeable debts under federal law include, but are not limited to, child support and alimony obligations, certain taxes, debts for personal injury caused by driving under the influence of alcohol or drugs, student loans (except in very rare cases), and fines or penalties owed to government agencies. It's crucial to consult with a bankruptcy attorney to understand how your debts will be treated in a bankruptcy filing.
The duration of the bankruptcy process in Las Vegas, NV, varies depending on the type of bankruptcy filed. A Chapter 7 bankruptcy typically takes about 4 to 6 months from filing to discharge, provided there are no complications. Chapter 13 bankruptcy, which involves a repayment plan, usually takes between 3 to 5 years to complete as the debtor makes monthly payments to creditors. The timeline for a Chapter 11 bankruptcy can vary widely, often taking several months to several years, depending on the complexity of the case and the reorganization plan's negotiation and approval process.
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