Chapter 7 bankruptcy in Las Vegas is a great option for many Nevada residents. But not Chapter 7 is not available to everyone. To figure out whether you can use Chapter 7, your best bet is to consult with an experienced Las Vegas bankruptcy attorney. But to give you a bit of guidance, here are some examples of….
3 Types of People Who Can’t File for Chapter 7?
1. People who have too much “current monthly income” (aka “CMI”). If it’s above the median income for Nevada, then you have to figure out if you pass the “means test.” (A new innovation in the 2005 bankruptcy law intended to weed out bankruptcy abuse.) Failure to meet the requirements of the means test results in a presumption of abuse and ineligibility to file for Chapter 7. This presumption can be overcome, but it requires experienced bankruptcy counsel. Then again, it is also generally advisable to work with experienced bankruptcy attorneys to assist you with the first step of determining your Chapter 7 eligibility under the means test.
2. People with sufficient income or assets to be able to pay off some of their debts within 5 years. This is a relatively subjective standard given that no one really knows what their situation will be in 5 years, so how can you predict whether you could pay of your debts? However, this is again where experienced Las Vegas bankruptcy attorneys can help you plan appropriately in advance to make sure you have access to a Chapter 7 filing if that is indeed the appropriate solution for your situation.
3. Anyone who came out of bankruptcy with a discharge within the past 8 years. Counting for the period begins the day you received your discharge. You are not eligible to file for Chapter 7 again until 8 years from the date of such discharge.
There are a few other categories. However, these are rarer situations that most debtors are unlikely to encounter.
For more questions about Chapter 7 bankruptcy and who can and cannot file, please feel free to contact an experienced Freedom Law Firm Las Vegas bankruptcy attorney for a free initial consultation by calling 702-745-8584.