When the amount of debt you’re facing becomes too great to manage or handle on your own, filing for bankruptcy can provide a solution. Through Chapter 7 bankruptcy, people with a limited income and overwhelming debt can liquidate many of possessions or assets to manage or eliminate some of that debt.
Under Chapter 7, a trustee is appointed to oversee the debt, income, expenses, property, and possessions of the debtor to determine if their assets can be sold to satisfy their debts. Liquidation of assets can take anywhere between three to six months to complete, but upon completion of the liquidation period certain types of debt are discharged and the debtor is not required to pay the remaining amount of that qualifying debt.
What Does It Mean To Discharge Debt?
Following Chapter 7 liquidation, a discharge is given through which debtors are released from personal obligation to pay for remaining unsecured debt. Creditors that were owed are also not allowed to take further collection action against the debtor. In many cases, a Chapter 7 filer will automatically receive their discharge at the end of their case, typically within two to four months.
What Types Of Debt Do Not Qualify For Discharge?
It’s important to know that not all types of debt will qualify for discharge. Secured debts cannot and will not be discharged under any type of bankruptcy. Secured debt or other debt that does not qualify includes:
- Child Support
- Spousal Support/Alimony
- Unpaid Tax Debt
- Student Loans
- Fines Owed To Government Agencies
- Debts That Are Not Disclosed In Bankruptcy Filing
- Debts Incurred As A Result Of Fraud
- Debts That Have Been Reaffirmed In A Creditors Meeting
- Debts Incurred After The Initial Filing Date
What Types Of Debt Qualify For Discharge?
Fortunately, there are many types of unsecured debt that do qualify for liquidation and discharge. Dischargeable debt can include:
- Credit Card Balances
- Medical Bills
- Certain Types Of Loans
- Past Due Utility Debt
- Old Tax Debt (In Limited Cases)
- Debts With Collection Agencies
- Personal Loans
- Business Debt
- Debt Owed From A Lease Agreement
- Auto Accident Claims (Except Those Incurred From Drunk Driving)
Las Vegas Chapter 7 Bankruptcy Filing
If you are considering filing for bankruptcy, call Fair Fee Legal Services in Las Vegas today. Our team of expert bankruptcy attorneys has over 50 years of combined law experience and detailed understanding of the Nevada bankruptcy process.
We offer the best Chapter 7 bankruptcy value in Las Vegas with professional, knowledgeable, experienced, and comprehensive service for a down payment of $799 with the remaining attorney fees paid through bankruptcy trustee payments. Simply call, text, or email us today and we will send you a financial survey that will provide us with the information needed to prepare for your personal financial evaluation by an attorney.