Chapter 7 filings are commonly known as the “straight” bankruptcy. These filings are for the traditional liquidation of personal, business or partnership assets. Generally, the types of liabilities that may be extinguished include, but are not limited to:
•Credit Card debts;
•Judgments (in cases not involving fraud or criminal conduct);
•Personal loans or debts; and
•Deficiencies on foreclosed properties or repossessed vehicles.
By extinguishing these debts, you will in effect get a fresh start. In addition, you are able to stop a foreclosure or repossession.
You will usually be able to keep all of your property (including your house and vehicle as long as you are current with your payments and able to continue to make these payments). In a chapter 7 case, you can keep all property which the law says is ”exempt” from creditors. In Nevada, the list of exempt property includes, among other things, a decent portion of equity in your home, up to $500,000 in qualified retirement accounts, $15,000 in equity in your car, all Social Security benefits, and many other assets.
Filing for Chapter 7, however, is not allowed for all persons seeking to file Bankruptcy. In order to determine if you are eligible, please contact our office to arrange a consultation on which type of Bankruptcy is right for you.
A Chapter 7 Bankruptcy can be usually be completed in less than 120 days, but may take longer depending on your situations. The key step of the process will involve the debtor receiving a discharge, which is the document that wipes out all of the dischargeable debts.