Las Vegas Chapter 13 Bankruptcy Attorney 

Potential Benefits to Filing Chapter 13 Bankruptcy

Chapter 13 bankruptcy can be thought of as a reorganization of your debts—creating a plan that allows you to make payments to creditors while staying within your current means. Unlike Chapter 7, filing for Chapter 13 bankruptcy allows you to keep your assets and instead devotes an agreed upon portion of your income to a payment plan.

Choosing Chapter 13 bankruptcy means committing to a structured financial strategy that comes with several potential advantages. This type of filing helps manage obligations without losing valuable assets like your home or vehicle. Additionally, it provides an opportunity to catch up on missed payments over time rather than facing immediate financial strain. For many, it also stops accruing interest on overwhelming debts, making repayment more feasible in the long term.

4 Benefits to Filing Chapter 13:

1. Save Your Home: In Nevada, there are two ways to save your house if you are filing for Chapter 13. You can propose a plan payment to the Trustee which will resume your normal monthly payments and include additional money to catch up on your arrears. Or, you can propose to repay the arrears over an up to 5-year period. The second option is to use the Bankruptcy Courts Mortgage Modification Mediation Program, where you can try to negotiate a loan modification with your lender. So far, success rates in modifications have been nearly 70%.
2. Keep Your Car: If you are behind on car payments, filing Chapter 13 can give you a chance to catch up. In some cases, you may even be able to extend the amount of time to pay off your car, so monthly payments can be reduced. Often, we can modify the interest rate to something more reasonable, or even reduce what you owe on the car to the fair market value of the vehicle and pay just what the car is worth over a 3–5-year period.
3. Repay the IRS: There are various options for dealing with the IRS in Chapter 13 bankruptcy, and you can often stop penalties, interest, and even reduce the total amount you owe—paying off debts in a 3-5-year period.
4. Consolidate and Reduce Debt: In Chapter 13, you can consolidate all of your unsecured debts, including credit cards, medical bills, and personal loans. Once filed, you can stop the interest from running and propose to repay only what you can afford. In most cases, that means you only have to repay a fraction of your debt, and in some cases, you may not have to pay anything at all.

Our Las Vegas Chapter 13 bankruptcy attorneys at Fox, Imes & Crosby, LLC understand that every circumstance is unique, and we will take the time to walk you through your options, answer all of your questions, and stand beside you every step of the way.

Additionally, we recognize that life events such as medical emergencies or sudden unemployment can lead to unforeseen financial difficulties. Our commitment is not only to address current challenges but also to assist in rebuilding a secure financial foundation for the future. By implementing personalized payment plans through Chapter 13, you can have peace of mind knowing that you're taking proactive steps toward financial recovery.

Reach out to our knowledgeable team today by calling (702) 941-6320 or filling out our short online form to schedule a consultation with our Las Vegas Chapter 13 bankruptcy attorney.

What Are the Limits of Chapter 13 Bankruptcy?

Filing for Chapter 13 bankruptcy is more than just getting rid of debt. It involves restructuring your finances so that you can move forward in your life to begin building a successful financial future. However, just like anything, Chapter 13 has limits and might not be right for everyone.

Understanding these limits is crucial before making the decision to file for Chapter 13. It's important to be aware of how debt ceilings might affect your ability to cover expenses and retain essential assets. Consulting with legal professionals can offer clarity about how these restrictions apply specifically to your situation. Moreover, our team ensures that you comprehend the long-term implications and requirements, empowering you to make informed decisions.

5 Limits of Chapter 13 Bankruptcy Include:

1. There is a limit to the amount of secured and unsecured debt that you can have. Currently, the limit is a total of $2,750,000 for secured and unsecured debts
2. If you are in arrears on a house, car, or other property but want to keep the property, you have to pay all of the arrears back through the plan.
3. If you are behind on your house or car payments, you have to make the ongoing payments through the Chapter 13 Trustee and incur the additional Trustee Tax, calculated at 10%.
4. Typically, the IRS will not negotiate with you during the Chapter 13 process. This means that whatever Priority Amount you owe, you will have to pay. You will likely need to talk to an attorney to determine what your Priority Amount is, as it still may be less than the total amount you owe them.
5. In a Chapter 13, you are limited to a 5-year plan. This means that any amount you have to pay back has to be done over no more than 60 total months.

How Does Chapter 13 Bankruptcy Work?

Chapter 13 provides individuals with an opportunity to reorganize their debts and establish a repayment plan to regain control of their finances. If you are struggling against debt, our experienced Chapter 13 bankruptcy lawyers in Las Vegas are well-versed in this process and can guide you along the way. Here's a quick overview of how Chapter 13 bankruptcy works:

Part of the Chapter 13 process is devising a feasible financial plan, one that balances repaying creditors with maintaining a reasonable household budget. The structured nature of Chapter 13 helps in fostering a disciplined financial lifestyle, which is instrumental in preventing future financial setbacks. The collaborative approach with legal professionals ensures that every aspect of the financial situation is considered, promoting a comprehensive resolution to debt issues.

1. Consultation: We assess your financial situation, considering income, expenses, assets, and debts, to determine if Chapter 13 is suitable for your situation.
2. Filing the Petition: We assist in preparing and filing the necessary legal documents, including the bankruptcy petition, schedules, and repayment plan, with the Las Vegas bankruptcy court. Upon filing, an automatic stay is initiated, providing immediate relief from creditor actions like collection calls and wage garnishment.
3. Repayment Plan: We work together to create a tailored repayment plan, consolidating debts into a manageable monthly payment over 3 to 5 years.
4. Trustee Oversight: A bankruptcy trustee is assigned to your case, reviewing the repayment plan and distributing payments to creditors.
5. Confirmation Hearing: We represent you at the confirmation hearing, where the court reviews and approves the plan, addressing any creditor objections.
6. Making Payments: Once the plan is confirmed, you make regular payments to the trustee, who distributes them to creditors accordingly.
7. Completion and Discharge: After successfully completing the repayment plan, remaining eligible debts are discharged, offering a fresh financial start.

At Fox, Imes & Crosby, LLC, we provide services in both English and Spanish to accommodate our diverse clients. We also offer flexible payment plans to accommodate your financial circumstances. With more than 50 years of combined experience, our Las Vegas Chapter 13 attorneys are well-equipped to lead you to debt relief. Get in touch with us to schedule an appointment and see how we can assist you with the Chapter 13 bankruptcy process.

Moreover, clients benefit from personalized sessions where we explain the nuances of the bankruptcy process, demystifying common misconceptions. By understanding the steps involved and their potential outcomes, clients can approach the process with confidence and clarity. Our aim is to provide not only legal representation but also financial literacy, which serves as a foundation for future financial well-being.

Local Nevada Laws & Considerations for Chapter 13 Bankruptcy

Filing for Chapter 13 bankruptcy in Las Vegas involves understanding the specific state laws and regulations unique to Nevada. Nevada law provides certain exemptions beyond what federal law allows, affecting what property you can keep during and after the bankruptcy process. For example, Nevada offers a robust homestead exemption, which may protect a portion of the equity in your home. Understanding these state-specific exemptions is crucial when filing for Chapter 13 bankruptcy, as they can significantly impact your financial recovery plan.

Additionally, Nevada requires you to attend credit counseling and debtor education courses from an approved provider in the state both prior to filing and after completing the bankruptcy process. These courses are designed to assist you in managing finances more effectively and to equip you with skills necessary to avoid future financial pitfalls. Consulting with a local attorney well-versed in Nevada's bankruptcy statutes can help guide you through these state-specific requirements, ensuring that your filing process adheres to both state and federal guidelines and improves your chances for a successful financial restructuring.

FAQ: Navigating Chapter 13 Bankruptcy in Las Vegas

What is the Chapter 13 Means Test?

The Chapter 13 means test is a financial assessment to determine whether you qualify to file under Chapter 13 bankruptcy. This test evaluates your income and expenses, comparing your average monthly income over the previous six months to the median income for a household of your size in Nevada. If your income is below the median, you're automatically eligible to file under Chapter 13. If it's above, further calculations on disposable income are needed to see if Chapter 13 is feasible. Understanding the intricacies of the means test is essential, as it dictates your repayment capacity and the structure of your repayment plan. Our legal team can help guide you through the computation process to ensure accurate representation of your financial status, providing a clearer path toward debt relief.

What Happens to My Credit Score After Filing?

Filing for Chapter 13 bankruptcy will impact your credit score, as the bankruptcy will typically remain on your credit report for seven years. While this may initially lower your score, Chapter 13 provides an opportunity to rebuild credit over time by establishing a history of on-time payments through the structured repayment plan. As you make consistent payments and reduce your debt load, your credit score can gradually improve. Moreover, completing a debtor education course, which is required in Nevada, can provide insights into effective financial management and credit rebuilding strategies, offering a foundation for better financial health post-bankruptcy.

Can I Keep My Business While Filing for Chapter 13?

For self-employed individuals and small business owners in Las Vegas, Chapter 13 bankruptcy allows you to continue business operations while managing personal debts. However, your business income will be a crucial factor in determining the viability of your repayment plan. The ability to retain your business depends on how personal and business assets are structured and how they interact with the bankruptcy estate. Protecting your business during bankruptcy involves strategic planning, often requiring consultation with a bankruptcy attorney experienced in both business and personal bankruptcy to navigate the complexities involved.

How Long Does the Chapter 13 Process Take?

In Las Vegas, the Chapter 13 bankruptcy process typically spans three to five years, beginning with the filing of your initial petition and concluding with the discharge of eligible debts. This timeframe includes the preparation and submission of required documentation, the development and court approval of your repayment plan, and the completion of all proposed payments. Although the process is lengthy, Chapter 13's extended timeline enables debtors to make affordable payments and gradually resolve their financial obligations, ultimately leading to a fresh financial start.

What Are the Costs Involved in Filing Chapter 13?

Filing for Chapter 13 involves several costs, including court filing fees, mandatory counseling fees, and potential legal fees. The court filing fee for Chapter 13 in Nevada is approximately $310, subject to change. Additionally, you must complete credit counseling and debtor education courses, which may have associated costs. Legal fees vary depending on complexity and services provided. Our firm offers transparent pricing and flexible payment options to minimize the financial strain, helping you focus on recovery. Understanding these costs upfront is essential to plan your finances smartly throughout the process.

Contact Our Las Vegas Chapter 13 Bankruptcy Lawyers

At Fox, Imes & Crosby, LLC, our attorneys have over 50 years of combined, hands-on experience and know how to effectively navigate bankruptcy cases. We have helped countless clients in Las Vegas and surrounding areas find innovative and personalized ways to move forward toward a brighter future.

Reach out to our knowledgeable team today by calling (702) 941-6320 or filling out our short online form to schedule a consultation with our Las Vegas Chapter 13 bankruptcy attorney.