Deciding to declare bankruptcy can be a difficult situation, no matter where you live. For those who reside in Las Vegas, it is possible to file for Chapter 13 bankruptcy. This move can actually be a relatively simple process designed to get you back on your feet as soon as possible. You can start by contacting the professionals at DeLuca & Associates for help with your Chapter 13 bankruptcy in Las Vegas.
What is Chapter 13 Bankruptcy?
Knowing more about what Chapter 13 bankruptcy is and what the process entails can help things go as smoothly as possible. Chapter 13 bankruptcy is designed for those who have a steady income as well as secured and unsecured debts that are within specific amounts of money owed. When filing for Chapter 13 bankruptcy, you must have unsecured debt that does not exceed $269,250, and secured debt of $807,750 or less.
Chapter 13 Bankruptcy and Employment
You don’t need to be employed to file for bankruptcy. In many cases, job loss is one of the primary reasons people file for bankruptcy. Although being unemployed will not hinder the process of filing for bankruptcy, it may impact how successful the outcome of the bankruptcy filing is.
Debtors who file for a Chapter 13 bankruptcy will generally pay back the full amount or a portion of the debts over a repayment plan between three and five years. Filing for this type of bankruptcy allows you to take control of mortgage arrears and car loans, dump a second mortgage, and pay back any nondischargeable debts, including specific taxes. If you have a steady monthly income, Chapter 13 is the optimal bankruptcy choice.
Chapter 13 Bankruptcy and Unemployment
Filing for Chapter 13 bankruptcy without having a steady income each month is more difficult, but certainly possible. If you are unemployed and filing for this type of bankruptcy, you can still obtain money for payments through other sources, including unemployment benefits, social security, or rental income. Although the court is unlikely to approve your case if the general consensus is that you don’t have enough money to proceed with the bankruptcy filing, showing that you can generate enough income from additional sources will give you a much higher chance of court approval.
Filing for Chapter 13 Bankruptcy in Las Vegas is certainly attainable, providing you meet the specified criteria. What this generally means is that you can file as long as you have proof of sufficient monthly income. Even if you’re not employed, you may count other sources of money, such as rental income or social security benefits.