Catch Up To Your Debts and Let Go of your Worries
Unlike other types of bankruptcy where you might lose your stuff, Chapter 13 lets you keep what you own. You’ll make a plan to repay your debts over 3-5 years, and any leftover debt (with some exceptions) gets wiped clean at the end. It’s like hitting the reset button on your finances!
Chapter 13 bankruptcy helps folks in Nevada who have a regular income to sort out their debts and pay off overdue bills through a court-approved plan. This plan, also called a “wage earner’s plan,” lets debtors keep their stuff while they pay back what they owe.
Quick Summary:
- Unlike other bankruptcies, Chapter 13 allows you to keep your belongings while creating a repayment plan spanning 3-5 years, wiping out remaining debt afterward.
- Chapter 13 aids those with steady incomes in Nevada, helping them pay overdue bills through a court-approved plan while retaining ownership of their assets.
- This legal process allows you to catch up on overdue debts while eliminating others, tailored to your income and expenses, providing a fresh financial start after 3-5 years.
- Filing for Chapter 13 allows you to maintain essential assets such as your home and car, with payments structured to help you stay current on secured debts.
- Before filing, complete two courses to ensure readiness for bankruptcy and financial management afterward.
What is Chapter 13
Chapter 13 bankruptcy is a legal process that helps you catch up on certain debts while also getting rid of others. If you have a steady income, Chapter 13 lets you clear debts you can’t manage while holding onto your most important belongings. You make payments for three to five years. After completing payments, qualifying debts are erased, giving you a fresh start.
If you have a steady income, filing for Chapter 13 bankruptcy might be your top choice. Your monthly income and expenses determine a payment amount, which is then divided among your debts.
For secured debts, like a mortgage or car payment, these payments can help you stay current and keep your belongings. Unsecured debts, such as credit card debt, can also be paid partially through these payments. Once your Chapter 13 payment period is over, unsecured debts are wiped clean.
How To File?
- File a petition: Start by requesting Chapter 13 protection from the court through a petition.
- Disclose your financial situation: Provide detailed documentation about your debts, income, and spending habits. Think of it as a comprehensive financial snapshot. Include tax returns to verify your financial standing.
- Joint filing (optional): If married, you and your spouse can file together.
- Meet the trustee: A court-appointed trustee will monitor your case and ensure its smooth progress.
- Creditors’ meeting: Attend a meeting with your creditors (individuals or entities you owe money to) to confirm debt amounts and negotiate a fair, court-approved payment plan based on Nevada regulations.
Exemptions in Chapter 13 Bankruptcy Cases
In Chapter 13, “exemptions” are like special rules that decide how much debt you have to pay back. Nevada has its own set of these rules, different from the general ones. These rules help protect certain things you own, so you don’t lose them during bankruptcy.
Here are some examples of stuff you can usually keep:
- Your house: Up to $605,000 of its value is protected.
- Your personal stuff: Books, art, and other things you own, up to $5,000 total.
- Home items: Furniture, electronics, and clothes, up to $12,000 in all.
- One car: Up to $15,000 of its value is protected.
- Government money: Social Security, unemployment, and some retirement funds.
- Tools for your job: Depending on what you do, up to $10,000 worth of tools can be protected.
- Extra stuff: You get a “wildcard” exemption to protect up to $10,000 of other things you own.
Do not hesitate to choose what your situation desires. Get more wise options with your Chapter 13 Bankruptcy Attorney in Las Vegas.
What are the Advantages of Chapter 13 Bankruptcy?
Stuck in debt and wondering if bankruptcy is the answer? Not sure if Chapter 7 or 13 is the right fit for you? Chapter 13 might be a good choice if you want:
- To save your house: Worried about losing your home? Filing Chapter 13 can stop foreclosure and give you time to catch up on payments.
- No more creditor calls: Tired of annoying debt collectors blowing up your phone? Chapter 13 can put a stop to that harassment.
- To keep your stuff: Got a car loan or other payments you want to keep making? Chapter 13 lets you do that.
- More time to breathe: Feeling overwhelmed by debt payments? Chapter 13 gives you more time to pay things off, and the rules might be more flexible than Chapter 7.
- One less headache: Dealing with multiple creditors can be stressful. Chapter 13 lets a trustee handle that for you, so you don’t have to.
Make the right choice! Discuss your options with your Chapter 13 Bankruptcy Attorney in Las Vegas.
What Documents Do I Need?
Before filing Chapter 13, you’ll need some proof to show you qualify. Here’s what you’ll need to gather:
- Your credit report: This shows your debts and borrowing history. You can get a free one from a credit reporting agency each year.
- Tax returns: The court needs to see your income for the past 4 years. Don’t forget these, or your case might get thrown out!
- Paystubs: Show the court your recent income for the past 6 months.
- Bank statements: Let the court see your bank activity for the past 3-6 months.
- Housing documents: If you rent or own a home, bring your lease agreement, mortgage statement, or property tax bill.
- Car loan statements: If you have a car loan, bring recent statements.
Got anything else that shows your money, debts, or property? Bring that too, just in case.
How Long Does Chapter 13 Credit Impact Last?
Filing for bankruptcy can hurt your credit score, but it doesn’t have to ruin it forever. Here’s the good news: Chapter 13 bankruptcy only stays on your credit report for 7 years from the filing date. That’s way better than Chapter 7, which sticks around for 10 whole years!
Do I Have To Take Any Educational Courses?
Yes! Before filing Chapter 13, you gotta take two educational courses.
- The first course helps you figure out if bankruptcy is the right choice. You need to finish this within 6 months (180 days) before filing. Once you’re done, you get a certificate to prove it.
- The second course teaches you how to manage your money better. You can take this anytime after filing, but the court needs proof before they wipe out your debt.
Think of it like learning how to ride a bike before taking off on the road. These courses help make sure you’re ready for bankruptcy and know how to handle your finances afterward.
Call our Chapter 13 Bankruptcy Attorney in Las Vegas Now!
After reading this article, you’ll understand why it’s crucial to have a Chapter 13 Bankruptcy Attorney in Las Vegas when you file. Going it alone could waste your time, effort, and money. To maximize your chances of success, it’s essential to hire an experienced Chapter 13 Bankruptcy Attorney in Las Vegas!
Riggi Law Firm values your needs and doesn’t overlook them. We rely on our skills, knowledge, training, and experience. For over 30 years, our firm has assisted many people and businesses in Las Vegas, Nevada. No case is too complex for us! If you’re struggling to grasp Chapter 13 bankruptcy, our Chapter 13 Bankruptcy Attorney in Las Vegas is ready to assist you! Get a free initial consultation today!