Chapter 7 Bankruptcy
Chapter 7 cases are the most common type of Bankruptcy filing. These cases are for the traditional “liquidation” of personal, business or partnership assets. While that may sound imposing, the practical effects of a Chapter 7 are typically not a problem.
Generally, a Chapter 7 Bankruptcy will discharge the following types of debts:
- Medical bills;
- Credit Card debts;
- Judgments (in cases not involving fraud or criminal conduct);
- Payday Loans (in cases not involving fraud or criminal conduct);
- Personal loans or debts; and
- Deficiencies on foreclosed properties or repossessed vehicles.
You get a fresh start by discharging your obligations to pay these debts. In addition, you are able to stop a foreclosure or repossession.
Assets You Can Keep
A Chapter 7 is associated with a liquidation of assets, but usually a person is able to keep all of their property. This includes your house and vehicle so long as you are current with your payments. You can keep all property that 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;
- up to $12,000 in household furnishings, appliances, and electronics;
- one firearm; and
- many other assets.
Most cases are usually completed in less than 120 days. However, rarely it takes a bit longer. The last, and pivotal, step of the Bankruptcy process involves the debtor receiving a discharge. The discharge is the order from the Bankruptcy Court that wipes out all of the dischargeable debts.
Filing for Chapter 7, however, is not allowed for everyone. 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.