Chapter 7 Bankruptcy

Chapter 7 Bankruptcy is also known as "straight" bankruptcy.  Individuals who earn under the Nevada mean income (as determined by recent census figures) are immediately qualified for Chapter 7 bankruptcy,  as are those who are unable to pay a certain amount towards their outstanding debt over the next five years or more than 25% total of the outstanding debt.

Chapter 7 bankruptcy allows you to experience a clean financial slate by wiping out all applicable debts in exchange for non-exempt property.  Property that is not covered by bankruptcy exemptions is sold and the proceeds used to pay your outstanding debts. However,  it is important to understand that there are many exemptions under Nevada law that allow you to keep property and still qualify to file for chapter 7 bankruptcy. Under current Nevada exemptions,  your homestead is exempt up to $550,000;  you are allowed to keep equity in your car up to $15,000.

Chapter 7 bankruptcy has several benefits.  First of all,  the procedure is relatively quick and streamlined.  In addition,  Chapter 7 allows you to keep a credit card and other secured debt like a car or a home appliance you would like to continue making payments on.  Chapter  7 also protects some assets, like retirement plans, Social Security payments,  and other exempted property.  Property that is exempt under Chapter 7 will not be liquidated when you file for bankruptcy.

Though Chapter 7 bankruptcy will eliminate many of your debts,  it will not exempt you from paying taxes,  student loans, child  support or alimony,  and some other debts. However,  Chapter  7 is an attractive option due to its quick discharge of debt, immediate protection against creditors and wage garnishment attempts,  and provisions that allow you to keep your earnings after bankruptcy.

Anyone can file Chapter 7 bankruptcy.  However, Chapter 7 is not the right option for every debtor.  If you're considering filing Chapter 7,  you're better off consulting with an experienced bankruptcy attorney to make sure you're filing the proper kind of bankruptcy and are making the right financial decisions as you navigate the bankruptcy system. Sanchez Law Group, Ltd. concentrates in bankruptcy cases and has extensive Chapter 7 bankruptcy experience.  Give us a call today for a free, confidential phone consultation to find out if Chapter 7 - and our extensive bankruptcy legal help - is right for you.