Bankruptcy Law in Las Vegas, NV combines both state and federal laws together in order to allow you, or you and your spouse, to become free from debt for good. The state laws are used to help you keep some of your assets, and to set a median income in order to qualify for certain chapters. They are used in conjunction with the federal laws so as to ensure that you get fair treatment in your need to declare insolvency. Bankruptcy does have a price to pay in that you have to make an attempt to repay your creditors, but you don’t have to give up everything you own to do that.
Exemptions are the rules that allow you to retain some of your assets in a Chapter 7 bankruptcy, and play a lesser role in Chapter 13. In the event that you have little in the way of assets, including your vehicle, you can still file for bankruptcy and gain from its protections. One drawback is that there are situations where an exempted asset may still be available to be sold. If you are making payments on your car, you technically have an asset value because you own a portion of the vehicle free and clear. There is a risk that the asset value is higher than your exemption, and the trustee may try to get that asset value out to pay your creditors. This scenario is rare, but it could happen.
The Bankruptcy Law in Las Vegas, NV uses the state median income for the purposes of determining which chapter of bankruptcy you can enter. On a strictly technical definition, being under the median means you enter into Chapter 7 and being over means going into Chapter 13. However, these situations are not written in stone, and there may be mitigating circumstances that make you eligible for both. Which chapter you enter may be a “what makes the most sense for you” situation, but taking to a lawyer can help make this determination.
