Site Loader

Most of us have a basic knowledge of bankruptcy law.  We know that it is an option, and it is an option we do not ever want to have to exercise.  However, there are some facts about bankruptcy law you may not know, and they can become pretty important if you ever find yourself considering the possibility of filing.  The first thing to remember is that your Las Vegas bankruptcy lawyer is there to help.  He can answer any questions and make sure you get everything done correctly so that the process goes as smoothly as possible.  The process is not cut and dry, which leads the first surprise.

Creditors Can Challenge the Bankruptcy
Creditors often do not like to hear that a debtor is filing for bankruptcy.  In most situations a bankruptcy means that they will be paid less than owed, if they get anything at all.  This does not sit well, and they do have the right to challenge the claim.  This is one place where your Las Vegas bankruptcy lawyer is an extremely valuable resource.  He can help you pull together the necessary documentation to beat the challenge and prove insolvency, or the inability to pay your debts.

Not All Debts Can Be Discharged
While bankruptcy is a viable option and a potential path to a fresh start, not all debts can be discharged.  Unfortunately, some of those with staying power are the very ones that can put someone in the position to need to file in the first place.  Most realize that alimony and child support are not eligible for discharge under bankruptcy.  However, as any Las Vegas bankruptcy lawyers will tell you, neither are debts owed to the federal government.  This obviously includes taxes, but student loans are also included in this.  Under some filings tax payments may be suspended for a bit, but they will resume with penalties and interest.

You Will Lose Everything
In Chapter 7 liquidation, many assets are sold in an effort to use the proceeds to pay debtors as much as possible.  Any remaining debts are discharged.  One of the biggest fears that those faced with Chapter 7 have is losing it all.  You may lose your boat, your second car, or you ATV, but you will be allowed to keep at the bare minimum your house and a vehicle.  Your Las Vegas bankruptcy lawyer can give you more information about what you will get to keep and what you will have to part with, as it varies by state.  While a bankruptcy can be devastating, you will not lose everything.

Bankruptcy law can be confusing and overwhelming.  There is a lot of misinformation out there, and it does not behoove anyone to try to navigate the choppy waters of filing bankruptcy on their own.  Finding a reputable bankruptcy attorney is key.

This article was written by Faith S. on behalf of one of the Top Nevada Bankruptcy Attorney Anthony Deluca