Chapter 7 bankruptcy is the most popular chapter of bankruptcy filed in Nevada. Sometimes situations arise that it is necessary to immediately file for bankruptcy protection. These situations create an emergent need for a bankruptcy filing in order to get the relief of an Automatic Stay. Read on as our Vegas Zero Down Bankruptcy Attorneys address some of the most frequently asked questions regarding filing an emergency bankruptcy in Nevada.
What is a Nevada Emergency Chapter 7 Bankruptcy?
If you are struggling with debts in the state of Nevada, filing bankruptcy may be a good way for you to address the situation. However, preparing a bankruptcy petition can sometimes be a long and arduous process, and you may have creditors breathing down your neck. To stop impending forms of creditor collection, you may want to utilize an emergency bankruptcy so that your case can be filed sooner. Also known as a skeleton filing, this abbreviated petition only requires basic contact and income information. Filing it activates the automatic stay and gives you two additional weeks to prepare the rest of your Chapter 7 bankruptcy petition.
Why File a Nevada Emergency Chapter 7 Bankruptcy?
If your debt situation requires an emergency bankruptcy, a potential problem could be coming up with significant costs for a quality attorney in time. Our bankruptcy lawyers offer Zero Down Post-Filing Emergency Bankruptcy payment plans to help those in this situation. The attorney will charge for work completed after your skeleton petition is filed. Your payment plan is 12 months, 0% interest. You have options to choose payment dates and frequencies to fit with your schedule. To discuss your emergency bankruptcy case, and to see if you qualify for Zero Down bankruptcy, schedule your free consultation with our Vegas Zero Down Bankruptcy law firm.
The list of documents you will need for your final petition is extensive, and should be provided to you by your attorney. However, a skeleton petition only requires a few documents. First, it’s necessary that you have a government photo identification (driver’s license, passport, etc.) as well as a social security card before filing your case. Your attorney will likely have an information packet for you to fill out so they can complete basic sections of the petition without your assistance. The most important documentation you will need is your income information from the last six months. If you are married, you will need to include your spouse’s income information as well. You will also need to file a credit counseling course completion certificate with your petition, which will usually be automatically sent to your attorney if you hire one.
The Automatic Stay is the legal mechanism that protects you from your creditors during a bankruptcy. When in place, your creditors must stop all forms of collection and harassment, with few exceptions. The Automatic Stay lasts, in most cases, until discharge or dismissal.
When you file any type of consumer bankruptcy, you are required to complete credit counseling in order to discharge your debts. The goal is for those who discharge their debts in bankruptcy to not fall into a similar debt situation in the future. The first course must be taken before your case is filed, regardless of if you file an emergency or standard petition. The second course must be completed within 60 days of your 341 Meeting of Creditors. These courses are generally around one to two hours and can be completed online. You will need to pay a nominal fee in order to register for these courses.
There are several ways to be disqualified from Chapter 7 bankruptcy, but the most common is income. You must either make less than the state median income for your family size, or pass the Means Test, to qualify for Chapter 7 bankruptcy in Nevada. The Means Test deducts necessary expenses from your average income to find disposable monthly income. This test can be complicated, so you should seek out the guidance of a bankruptcy attorney if you need to use it to qualify. You could also be disqualified from Chapter 7 due to prior bankruptcy filings. Many people choose not to file due to assets not being protected by state exemptions. Any assets that aren’t protected by Chapter 7 bankruptcy exemptions can be seized by the bankruptcy trustee to pay creditors.
This mandatory bankruptcy hearing is generally held about 30-45 days after your petition is filed. You will appear before your bankruptcy trustee, with your attorney if represented. Your creditors have the option to attend, although this is fairly uncommon. The trustee will verify your identity and ask questions about your case. Make sure to bring your driver’s license and social security card, or your hearing- and case discharge- could be delayed. These hearings are typically short, and you may share your time slot with several other debtors.
You will generally receive a letter from your bankruptcy trustee approximately 10-15 days after your case is filed. This letter may request additional documentation, but should also give you the date for your 341 Meeting of Creditors. Most people’s hearings are about 30-45 days after the case has been filed. After the 341 Meeting of Creditors, your creditors will have 60 days to object to your debts being discharged. If you have completed your second credit counseling course, at the end of those 60 days, your case will be eligible for discharge. Most people can expect the entire Chapter 7 bankruptcy process to take about 4-6 months.
There are several factors that determine how an Emergency Chapter 7 Bankruptcy will affect your credit in Nevada. Generally, those with higher credit scores can expect to see a decrease, while those with lower scores can expect no change or even a slight increase. An Emergency Chapter 7 bankruptcy will have no additional impact on your credit over a standard Chapter 7.
If you finance your vehicle, your lender is no longer required to report positive payments after bankruptcy. Therefore, you may want to consider financing a new vehicle after bankruptcy, as new lenders will be required to positively report. You will probably receive several offers for new lines of credit after your case has been discharged. Making timely payments and keeping a high revolving balance can help you build a positive credit history after your case has been discharged. If you don’t want to open new credit cards, or can’t get approved, you can open a secured (pre-paid) credit card through your bank. If your attorney offers a payment plan, you should ask if it includes credit reporting. Making timely payments on your post-filing bankruptcy payment plan can help you improve your credit.
You have the right to represent yourself in bankruptcy, but it often isn’t a wise decision. About one third of pro se Chapter 7 bankruptcies are dismissed. Emergency bankruptcy filings are more complicated, and therefore run a higher risk of dismissal. If you are filing emergency bankruptcy, you may not want to risk losing the protections of the Automatic Stay due to errors in your petition.
If you need an emergency bankruptcy, it can be difficult to save up the significant costs for a quality attorney in time. Our attorneys offer Zero Down Post-Filing Emergency Bankruptcy payment plans to help those in this situation. Your attorney will charge for work completed after your skeleton petition is filed, when you can begin accruing debts again. Your payment plan is 12 months, 0% interest. You can choose payment dates and frequencies to fit with your schedule. To see if you qualify, schedule your free consultation with our Vegas Zero Down Bankruptcy law firm.
Contact our Las Vegas Emergency Bankruptcy Lawyers for a “Fresh Start”
If you need an Emergency Chapter 7 Bankruptcy, now is not the time to wait. Learn more about the process and see if you qualify for our Zero Down payment plans today with your free consultation with one of our experienced Nevada debt attorneys. Contact our Nevada Debt Relief Team today. Call (702) 842-0700 for a free consultation. Today is the perfect day to get you on the road to a “Fresh Start“.