Chapter 7 Bankruptcy Las Vegas

Get A Fresh Start & Eliminate Debt
All paperwork completed
Free credit report
Case handled by a lawyer rather than a legal assistant

Are you considering filing for Chapter 7 bankruptcy in Las Vegas?

Make this difficult time a little easier by allowing the team at DeLuca & Associates Bankruptcy Law to handle all the necessary paperwork. We aren’t here to judge you, we’re here to help you with your monetary issues.

What is Chapter 7 Bankruptcy?

Chapter 7 bankruptcy is the most common of bankruptcy filings. Often defined as the “liquidation of assets,” filing for Chapter 7 forgives unsecured debt, allowing the debtor to begin anew. Individuals, married couples and companies are eligible for this type of filing. A trustee is appointed to sell the debtor’s assets for payment of debts, though federal and state law exemptions allow for retention of a primary residence and basics such as clothing. After filing for Chapter 7, the debtor cannot re-file for this type of bankruptcy for seven years. Filing for bankruptcy is hard enough without having to tackle a mountain of paperwork. Let us take care of all confusing forms for you. Our services include:

All paperwork completed
Free credit report
Case handled by a lawyer rather than a legal assistant

Take some time to breathe while discussing your case at our office, where you’ll be met by our professional yet courteous team. Contact us today at (702) 252-4673 to schedule a free consultation and learn more about the best Las Vegas bankruptcy attorney.

Mr. Deluca and his team are happy to answer questions about the following:

Filing bankruptcy in Las Vegas
Process of bankruptcy
Nevada Debt Relief
Chapter 7
Over 24 years in business

Chapter 7 Bankruptcy FAQs

This form of bankruptcy does not combine bills into one payment for you to pay off over time – that’s chapter 13. In chapter 7 bankruptcy, you’re asking the court to forget about or overlook your obligation to pay your creditors. To do that, you have to prove that you’re unable to pay. The following are some eligibility criteria for Chapter 7:

People who are unable to repay 25 percent of their monthly debt burden after paying for necessities like food and rent may qualify, but there’s one more test to pass.
Only people who earn less than the median income of the state in which they live AND are unable to repay 25 percent of their debts are eligible.

If both these criteria are not met, you must file Chapter 13.

One of the most immediate benefits after filing is the “Order for Relief,” or, less formally, an “automatic stay.” What this means is that most creditors must immediately stop asking you for anything that you owe them. On a temporary basis, this ensures that creditors cannot legally garnish your wages, drain your bank account, or take ahold of your car, home, or other possessions. Having an automatic stay means that your utility services or welfare benefits can’t be cut off either. Under this fresh start, you often get to keep all of your property. After filing, you will also be legally discharged from having to pay unsecured debts, which may include credit card, medical bills, and cash advances.

You can file for Chapter 7 bankruptcy as long as you meet the designated criteria. In most cases, those who file for Chapter 7 must have an income below the state’s median income and be unable to afford any unsecured debt payments. According to justice.gov, the median household income for one person in Nevada in 2013 was $44,924. These guidelines are not definitive, meaning that some people may not be able to file for Chapter 7 even with a low to moderate income, while those with an income that is higher than the state average may still be able to qualify. Other common criteria needed for filing include a large amount of debt and no substantial property.

Criminal fines and debts – If you have incurred debt as a result of criminal activity or negligence, such as debts and judgments related to personal injury or the death of others, Chapter 7 will not discharge what you owe.
Taxes – Most tax debt cannot be discharged in bankruptcy; however, in some instances, tax debt can be discharged.
Fraudulent Debt – If a court has found that you obtained debt fraudulently or illegally, it cannot be discharged. As an example, if you incurred a lot of credit card debt shortly before filing bankruptcy, the court will typically refuse to discharge that debt. Or, if you lied and/or used false information on a loan application to obtain funds, the incurred debt will not be forgiven even if you file for bankruptcy.
Alimony and Child Support Payments – Payments ordered during divorce court can potentially be renegotiated, but these debts will not be discharged following Chapter 7 bankruptcy.
Student Loans – Student loans, in general, are very difficult to discharge. In rare instances, particularly those involving a severe hardship condition, those filing for Chapter 7 bankruptcy are exempt from paying student loan debts. However, in 2022, the Biden Administration and the Department of Education have taken steps to have the U.S. Department of Justice ease the process of discharging student loans through bankruptcy.

It normally takes three to four months to finalize a bankruptcy case. After filing, you will meet with your attorney several times and may have to meet with your creditors. If you own property, they have the right to ask for liquidation of the property in order to offset some of your debt.

Chapter 7 bankruptcy is a liquidation bankruptcy designed to wipe out your general unsecured debts, such as medical bills and credit cards. You must have little to no disposable income to qualify for this type of bankruptcy. Otherwise, you may be forced to file for Chapter 13 bankruptcy.

Chapter 13 is bankruptcy a reorganization bankruptcy, as opposed to liquidation. Therefore, it is designed for debtors, typically those with regular income, who have the ability to pay back at least some portion of their debts. Those who make too much money to qualify for Chapter 7 bankruptcy, may have to file a Chapter 13 case instead.

In some cases, Chapter 7 is not the answer. You may wish to look into Chapter 13 bankruptcy if you wish to protect people who have cosigned for you, if you want to maintain ownership of valuable property, if you feel an obligation to pay your debts, or if you think a Chapter 13 debt repayment plan will look more favorable to future creditors.