Las Vegas Bankruptcy Lawyer

Laws are characteristically those which can be modified and changed. With changes to the bankruptcy law that occurred in 2005, it might be more of a challenge to file for bankruptcy if you don’t have a great bankruptcy lawyer Las Vegas to help you out. Under the changes made to the law on bankruptcy, if you have a high income, you can no longer qualify for bankruptcy filed under chapter 7. This means that you will have to repay some of your debt because they’re covered under chapter 13 bankruptcy.

This change also affects people filing for bankruptcy in that they have to get credit counseling even before they can file a case for bankruptcy. Counseling on debt management as well as budgeting also occurs before debts can be wiped clean off the slate. With advice from a bankruptcy lawyer Las Vegas, you can choose between a chapter 7 or chapter 13 type of bankruptcy to file for. Chapter 7 bankruptcy entails a liquidation of assets in order to pay for debts while chapter 13 seeks to continue payment of debts but with a repayment option that’s easier on the debtor. Remember if your income falls in the high income category, chapter 7 bankruptcy is no longer a choice.

The bankruptcy lawyer Las Vegas can help you figure out if you can file for bankruptcy under this specific chapter. Your current monthly income will be measured against the median income of the same size of household in your specific state. In this case, it is the state of Nevada. When your income is found to be less or even equal to the median, chapter 7 bankruptcy forms part of your selection. However, if income is found to be above the median, you must pass the new requirement of the means test in order to file for bankruptcy under chapter 7. This test helps in determining if you have enough income that is disposable. Specific allowed expenses and required payments for debts are subtracted. This way, a chapter 13 plan can be made for debt payments.

Income and expense standards depend on the state, the county and also the region you reside at. There are calculators available online to give you the exact values for the mean test. Filing for bankruptcy is a pretty time consuming process and it’s only with the best bankruptcy lawyer Las Vegas that you get the kind of bankruptcy you want to experience financial relief.