Las Vegas Bankruptcy FAQs
If you are considering bankruptcy, you may be feeling that you’ve reached the last resort for getting out from under overwhelming debt. However, bankruptcy is also a first step toward rebuilding financial security, and it is one that we can help you take with confidence. Below are answers to questions our Nevada bankruptcy attorneys frequently receive from clients, discussed here with the goal of shedding light on typical bankruptcy concerns. For more information about filing for bankruptcy and other options for dealing with debt, please contact our Las Vegas office and ask to speak with an experienced Nevada bankruptcy attorney.
What is the difference between bankruptcy and a debt management plan?
Bankruptcy is a legal proceeding provided under federal law to give people who cannot pay their bills a fresh financial start. Debt management plans are frequently offered by credit counseling agencies to pay off some or all debt by sending the counseling agency a monthly payment that is then distributed to creditors. Sometimes debt management plans are helpful, but often they are not. It’s important to keep in mind that bankruptcy is not necessarily to be avoided at all costs. In fact, if you sign up for a debt management plan you can’t afford, you may end up in bankruptcy anyway. An experienced bankruptcy attorney can provide advice on whether bankruptcy is your best option, as well as offer a range of other suggestions if appropriate and beneficial.
Will I Own Anything after Bankruptcy?
Many people who are considering bankruptcy fear they will not own anything after filing for bankruptcy, but in most cases, this is not true. If filing for Chapter 7 bankruptcy, you can keep your exempt property, such as equity in your home and car, household goods, and items you need for your job, as well as income earned and property acquired after the bankruptcy is filed. If filing for Chapter 13 bankruptcy, you can keep all your property if your repayment plan meets the requirements of bankruptcy law.
Will filing for bankruptcy affect my ability to get a job?
A potential employer or government agency cannot discriminate against you because you have filed for bankruptcy. If you wish to further your education, government agencies and private entities offering student loans also cannot discriminate against you due to a bankruptcy filing.
What if my credit report doesn’t show a zero balance for the debts that I was able to discharge in bankruptcy?
Debts discharged in bankruptcy should be listed on your credit report as having a zero balance, indicating you no longer owe anything on that debt. If any of your discharged debts incorrectly show a balance owed, that will negatively affect your credit score and make it more difficult for you to rebuild your credit. For this reason, check your credit report after your bankruptcy case is complete and file a dispute with the credit reporting agencies if the information is not correct. Our Las Vegas bankruptcy lawyers can help you do this.