Las Vegas Bankruptcy Attorney

Bankruptcy

One of the main purposes of Bankruptcy is to provide the debtor (person filing Bankruptcy) with a financial fresh start. The Law Office of Rodney K. Okano represents individuals and married couples in financial distress. Our goal is to provide our clients with relief from overwhelming debts that may result in harassing bill collections, lawsuits, wage garnishments and home foreclosures.

Bankruptcy can eliminate credit card debts, payday loans, medical bills, deficiencies on automobile repossessions and certain income tax debts. Bankruptcy can save your home or automobile by formulating a plan that allows you to catch-up on past due payments over the course of 3 to 5 years.

Effective immediately upon the filing of a Bankruptcy, the debtor is given protection of the Automatic Stay. The Automatic Stay is an injunction imposed by the Bankruptcy Court prohibiting creditors from any collection activities. The Automatic Stay stops wage garnishments, collection calls, dunning letters, lawsuits, foreclosures and repossessions.

Chapter 7 Bankruptcy is a process where credit card debts, personal and payday loans, medical bills, deficiencies on foreclosures and automobile repossessions and certain income tax are eliminated. The debtor is allowed to keep property that is necessary for a fresh start. Residents of the State of Nevada (2 years or more) are permitted to keep (exempt) up to 350K in equity in their personal residence (depending of length of ownership and other qualifications), 15K in equity a vehicle, 12K in household possessions and other categories of property. Debtor eligibility for a Chapter 7 is subject to the Means Tests (explained below).

Certain debts are not eliminated in a Chapter 7 Bankruptcy. Examples of non-dischargeable debts are recent income taxes, alimony, child support, student loans, debts incurred by fraud, judgments for injuries due to driving under the influence.

Past due payments on home and auto are best handled in a Chapter 13 Bankruptcy.

Chapter 13 Bankruptcy is effective in handling past due home and auto payments. Chapter 13 allows for the payment of past due payments over the course of 3-5 years. The filing of the Chapter 13 stops the home foreclosure and auto repossession. The debtor commences the Chapter 13 payments and continues to make the current payments (home and/or auto) until completion of the Plan.

Chapter 13 is also a possible solution in handling non-dischargeable debts such as, income taxes and support payments.

If the debtor has too much income to qualify for a Chapter 7 Bankruptcy (described above), Chapter 13 is still available. Debtors pay only what they can afford to pay based on their income and expenses. Therefore, regardless of the amount actually paid, all of the dischargeable debt is eliminated upon successful completion of the plan.

The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 ("BAPCPA") was signed into law on April 17, 2005. The majority of the provisions contained in BAPCPA became effective on October 17, 2005.

The provisions BAPCPA that are most likely to affect consumers debtors are:

Means Test - The Means Test is a process used to determine whether the debtor qualifies for Chapter 7 Bankruptcy. The test examines the household income of the debtor based on the previous 6 months. Maximum income levels are based on the debtor's household size. (Such levels of income are established by the Bureau of the Census.) If the debtor's income falls below the set amount, the debtor qualifies for Chapter 7 Bankruptcy relief.

In the case where the debtor's income exceeds the set limits, there remains a second chance to qualify. The average monthly income of the debtor, based on that prior 6 months is used as a starting point. The monthly expenses of the debtor are deducted from the income.

Deductions for the debtor's mortgage payment, vehicle payment, taxes, necessary insurance, child care, support payments and certain other expenses are based on the amount the debtor actual pays. However, deductions for rent, utilities, transportation costs and other living expenses are based on National and Local Standards of the Internal Revenue Service.

Qualification for Chapter 7 Bankruptcy is then determined based on how much income is left over, if any, after such deductions and the nature of the debts.

Credit Counseling Pre-Bankruptcy Briefing - Prior to filing for Bankruptcy under Chapter 7 or 13, the debtor must complete the Pre-Bankruptcy Briefing. The briefing must be received from an agency approved by the United States Trustee. The course is approximately 90 minutes and is available in-person, telephone and internet in the State of Nevada.

Personal Financial Management Instruction - After filing for Bankruptcy under Chapter 7 or 13, the debtor must complete the Personal Financial Management Instruction. The instruction must be received from an agency approved by the United States Trustee. The course is approximately 90 minutes and is available in-person, telephone and internet in the State of Nevada.

Employment Payment Records - The debtor must provide the court with all pay-stubs and/or payment advices received within the last 6 months.

Other BAPCPA Changes in Law - There are too many changes in the law to mention here. However, unlike the above mentioned changes, many do not apply in every case.

The Law Office of Rodney K. Okano is committed to staying informed on the new law and the latest judicial interpretations. We will use our knowledge of the law to effectively proceed with the most advantageous legal course of action. We are committed to serving the interest of our clients.

If you are in financial distress, call the Law Office of Rodney K. Okano for a free Bankruptcy consultation.

“We are a debt relief agency. We help people file for bankruptcy under the Bankruptcy Code.”