Considering Chapter 7 Bankruptcy in Las Vegas?

Unfortunately, life is such that you may be beset by misfortunes that are completely out of your control. For example, you may have suffered a catastrophic injury that resulted in huge medical bills or it could just be that you are one of the many innocent victims of the severe economic downturn we are all enduring. There is no shame in it, these things happen to the best of us andChapter 7 Bakruptcy may be an option for you.

And while we all want to pay our bills and meet our obligations, there comes a time when there is nothing you can do and you run the risk of exposing yourself and your family to financial disaster by doing nothing at all. Fortunately, the United States Congress enacted the U.S. Bankruptcy Code in recognition of the fact that it is better for society to allow people a fresh start rather than burdening them with debts they cannot possibly pay.

For most people, a Chapter 7 bankruptcy is the vehicle by which debtors free themselves from the heavy hand of their creditors. In general, a Chapter 7 bankruptcy eliminates all unsecured debt; these debts include credit cards, medical bills, money judgments, and deficiencies resulting from foreclosed and repossessed vehicles.

More importantly, if the mortgage payment on your house and car are up to date, a debtor can reaffirm the debt and keep that property out of the reach of other creditors. Therefore, it is possible for a debtor to declare Chapter 7 bankruptcy in Las Vegas and keep his home and vehicle as well as home furnishings and personal property.

The question many have is "when should I declare bankruptcy?" If you are looking for a lawyer because you have been sued by a creditor, if you are facing foreclosure or are in danger of having your car repossessed, or your credit card payment is so oppressive that you cannot save for the future, then it is time to seriously consider bankruptcy. By failing to declare bankruptcy under such circumstances a debtor runs the risk of being sued and having a judgment issued against him. If this happens, a debtor may be subject to wage garnishment, bank levy, property seizure or having a lien placed on a vehicle or home.

In the examples mentioned above, a Chapter 7 bankruptcy will have the effect of immediately stopping a foreclosure, car repossession, or lawsuit immediately after the filing of a petition. After filing the petition with the U.S. Bankruptcy Court, the Court sends a notice to all creditors identified in the petition indicating that an “automatic stay” has issued from the Court that prohibits creditors from attempting to collect a debt.

If you are married, you may file a joint bankruptcy petition. However, your spouse need not be included in your bankruptcy case if all or most of the debt is in your name alone. The advantage of filing an individual bankruptcy is that the other spouse may retain his or her credit for the benefit of the family.

Overall, the filing of a Chapter 7 bankruptcy is a relatively simple task. If you decide to declare bankruptcy, this office will need the following documents: 1) your last 6 months bank statements, 2) last 6 months pay stubs, and 3) tax returns for the last three fiscal years. In addition, you will be required to complete a questionnaire detailing your debts and financial obligations. Finally, you will need to complete a credit counseling course approved by the bankruptcy court before the petition is accepted by the court.

Once the petition is prepared, it is filed electronically and a date set one month from the filing date to appear before the bankruptcy Judge and the U.S. Trustee assigned to your case. This hearing is held to allow a creditor to object to the settlement of your claim and for the US Trustee to determine if you have assets that may be liquidated to distribute to creditors. Approximately three months after-the aforementioned hearing, your debts will be discharged and your case closed.

If you are considering filing for bankruptcy don't be ashamed and know that this office will help through what is certainly a trying and difficult period in your life.