How to Avoid Chapter 13 Bankruptcy Dismissal in Nevada
Chapter 13 Bankruptcy in Nevada allows you to consolidate debts and repay them with a structured payment plan. When you’re dealing with Chapter 13 Bankruptcy in Nevada, it’s essential to understand how to avoid a dismissal. If your case is dismissed, it means your creditors can start or continue the collection process against you. You could face foreclosure, garnishments of your wages, or have to deal with lawsuits. You could lose bankruptcy court protection. Any payments that were made toward a Chapter 13 repayment plan aren’t refunded. The debt reverts to the amount it was before you filed, minus the required amount during your repayment plan.
Bankruptcy law in Nevada states that a Chapter 13 dismissal may occur if you don’t make plans to repay the debts, your paperwork isn’t complete, you don’t meet the criteria for eligibility, or you don’t attend mandatory credit counseling. Plan payments are usually made for a period of three to five years. A dismissal may result if payments aren’t made. Precise documentation is required. You must be 100 percent accurate when preparing your paperwork.
A maximum amount of secured and unsecured debt is allowed for Chapter 13 cases. A dismissal may occur if you exceed the maximum allowable amounts. Non-compliance with court orders during the process or failure to provide the court with necessary information could result in a dismissal. Complete cooperation with the court can’t be stressed enough. If a dismissal does occur, it’s imperative to follow the court orders exactly. Fulfilling the requirements of the court may involve correcting inaccurate information on your paperwork or making outstanding payments.
There are options available before you face a motion to dismiss.
If a trustee files a motion to dismiss, prompt action is necessary. Read the motion carefully and file a response within the required timeframe. If you believe the motion isn’t accurate, you should provide the required documentation to prove the error. You may have a valid reason for not making the repayment. You may have suffered a severe illness or injury and missed work. You may have started a new job and not received wages immediately. It’s best to contact a lawyer specializing in bankruptcy cases.
A Nevada bankruptcy lawyer has the experience and knowledge of the law to guide you through all the steps of a complicated system. A lawyer will evaluate your case and develop a strategy to guide you through the steps of your unique situation. An attorney can assist with preparing the necessary documentation and present a strong case to the court.
