Applying for Chapter 13 Bankruptcy in Las Vegas
Applying for bankruptcy can appear to be a difficult procedure which may even seem impossible when faced with all the legal terms and requirements. When applying for Chapter 13 under Las Vegas bankruptcy laws, it’s important to understand the procedures, documentation, and eligibility requirements. If you have debt that you are unable to pay off, chapter 13 may be your best option.
How to File a Business
If a business entity needs to file for bankruptcy, they are told to file under Chapter 7 or 11. No matter what the size of the business, whether it’s a sole proprietorship or a limited liability company, the business itself can’t file for Chapter 13 bankruptcy.
Las Vegas bankruptcy law, however, does allow individuals who own businesses to file for chapter 13 bankruptcy if they file in their own names. Debts for which the individual will be personally liable can be included in the bankruptcy filing under chapter 13 of Las Vegas bankruptcy law.
Sufficient Disposable Income
Once you file for Chapter 13 under Las Vegas bankruptcy law, you are able to pay off your debts, on your own terms. It is a requirement to prove to the court that you will have sufficient income after deductions from which the debts can be partially paid off. The deductions that will be included in order to compute the disposable income include things such as mortgages for homes or car loans. In case you do not have sufficient income after deductions, the judge may reject the plea. For married couples, the income of a spouse can be cited as a means of repayment. Couples may even file a joint bankruptcy petition.
If your unsecured debts exceed $360,475 and secured debts exceed $1,081,400, you will be ineligible to apply for Chapter 13 under Las Vegas bankruptcy laws. Home and car loans are examples of secured debts which have collateral set against them. An unsecured debt on the other hand is one which has not been provided against any asset. Both debt limit amounts fluctuate over time due to adjustments made according to the rate of inflation.
Be Current on Tax Returns
If you have filed the federal and state income tax returns for four years prior to the date of filing for bankruptcy, under Las Vegas Bankruptcy law, you will meet the eligibility requirements. In case you need time to collect or catch up with current filings, the court will allow some time, by postponing the proceedings until a later specified date. If you fail to produce the transcripts of the returns or the returns themselves by a specified date, the court will dismiss the Chapter 13 case.
Applying for bankruptcy can be a difficult and complicated procedure, which is why it’s important to understand which case you can file. If you meet the eligibility requirements for Chapter 13 bankruptcy, you may be able to save your assets and pay the debts over time through a plan tailored to your situation.
To get serious about your finances and your future contact us by filling out the form on the right or call us at 702-878-1115.