Bankruptcy.  It's one of the best tools available to individuals who are facing overwhelming amounts of debt.  However, Nevada bankruptcy is subject to many myths and misconceptions. Here are some answers to frequently-asked questions about Nevada bankruptcy:

Should I File Bankruptcy?

Nobody can tell you whether or not bankruptcy will work for you. However, the Nevada bankruptcy attorneys at Sanchez Law Group, Ltd. can help you decide whether to file based on your current financial picture.  Some reasons to consider filing bankruptcy include inability to pay monthly minimums, impending foreclosures or property seizures due to non-payment, and / or inability to pay off debt due to adverse financial circumstances such as the death of a partner,  a severe illness,  or a lost job.

What are My Options for Filing for Bankruptcy?

Consumer bankruptcy usually involves filing for relief under Chapter 7 or Chapter 13 of the bankruptcy code.  Chapter 7 bankruptcy is also referred to as "straight" or "clean slate" bankruptcy.   This option wipes out all applicable debt immediately.   Chapter 13 bankruptcy allows the individual to create a payment plan to wipe out debt over several years of payment.

Am I Eligible for Chapter 7 Bankruptcy?

The bankruptcy code places restrictions on who may file for straight bankruptcy through Chapter 7.   The code uses a median income test to qualify individuals for bankruptcy. If you make less than Nevada’s mean income, you are immediately eligible; however, if you make more than the median, you will be subject to a formula which takes into consideration your last six months of income, factors like child support, alimony or overdue taxes, and current payments and debt obligations.  If this formula shows that you can pay a certain amount of your debts over the next five years, you will be denied the option of Chapter 7 and forced into Chapter 13 bankruptcy.

Can I Keep Property if I Declare Bankruptcy?

It depends.  Nevada does allow you to keep alimony and child support money, proceeds from life insurance or retirement, benefits like unemployment insurance or Social Security, and even your home.  However, bankruptcy does not wipe out certain debts, such as tax obligations, most student loans, and obligations to pay child support or alimony.

I Have More Questions About Bankruptcy. Who Can Help?

Sanchez Law Group, Ltd. is dedicated to helping clients declare bankruptcy while retaining their dignity and pride.   We provide assistance, legal counsel and advice and may be able to answer your bankruptcy-related questions and help you file bankruptcy. Contact us today for a free consultation -  it's entirely confidential.