Top Benefits of Hiring an Experienced Bankruptcy Attorney

DeLuca & Associates Bankruptcy Law will review your finances and help you determine if Chapter 7 is right for you. If you make too much money to file for Chapter 7, you will likely want to consider a different type of bankruptcy or explore debt settlement options.

In Chapter 7 of the Bankruptcy Code, you are allowed to liquidate nonexempt assets in order to pay creditors. Only after doing so can your debts be discharged.

If you are in significant financial trouble, Chapter 7 may be the best option for you. It is a quick and efficient way to eliminate unsecured debts such as credit card debt, medical bills, personal loans and payday loans.

While bankruptcy carries a stigma, it can be a valuable tool for eliminating debt and getting a fresh start. However, be aware that it will leave a 10-year stain on your credit report. If you are struggling to meet your debt obligations, contact DeLuca & Associates Bankruptcy Law Las Vegas for a free consultation.

Chapter 13

The Chapter 13 bankruptcy process allows debtors with regular income to develop a plan to repay creditors over three, but no more than five, years. A debtor may keep his or her property and catch up on loan payments, but unsecured creditors must accept less than they would receive in a Chapter 7 bankruptcy.

In a Chapter 13, if you purchase a car or home more than two and a half years ago, the court can allow you to “cram down” the loan balance to reflect the value of the vehicle or property. The cramdown reduces the interest rate and sometimes the principal amount of the loan.

Upon filing, a trustee is appointed to administer the bankruptcy case. Approximately 40 days after your bankruptcy is filed, you will attend a meeting of creditors (known as a 341 meeting). During this meeting, the trustee and other interested creditors can question you about your financial situation. Bankruptcy Attorney Las Vegas will be with you at this meeting.

Asset Protection

Asset protection involves transferring assets into legal entities that are at arm’s length from your personal wealth. A creditor can only seize the assets of a legally protected entity if it can prove that you made a transfer with the intent to hinder, delay or defraud the creditor.

All fifty states have laws that exempt a certain amount of equity in your home and assets held in employer-sponsored retirement plans (such as an IRA or 401(k)) from creditors. Federal law also protects inherited IRAs from the creditors of non-spousal beneficiaries.

Establishing an irrevocable life insurance trust (ILIT) may help you remove life insurance proceeds from your estate for purposes of reducing estate taxes. Bankruptcy Lawyer Las Vegas will design a structure that meets your objectives, and prepare legal documents to implement the plan. This type of planning requires extensive knowledge of state and federal exemption laws, bankruptcy laws, estate law, taxation laws, trusts and corporations. It should be done before a claim arises to maximize its effectiveness.