What are the Consequences of Filing Bankruptcy in Las Vegas?

Filing bankruptcy in Las Vegas is something that many Las Vegas residents have continued thinking about as the economic problems for Nevada and the U.S. have not yet gone away.

But what are the consequences of filing for bankruptcy in Las Vegas?

The Positives

1. Filing bankruptcy in Las Vegas puts an immediate stop to calls from creditors and collection agencies. That’s because debtors who file for bankruptcy get the benefit of the “automatic stay” the instant your case is filed. And if you’re working with an experienced Las Vegas bankruptcy attorney, then your case will be submitted electronically right from the attorney’s computer, which makes the automatic stay even more “automatic” than it used to be. The moment your case is filed, creditors may no longer contact you directly during your case.

2. You get a financial time-out. You get a break from making payments. And you ultimately get rid of (i.e., “discharge”) most or all of your debt.

3. A fresh start! The discharge of your debt means you have a clean slate and can get back to living your life without carrying a large debt burden.

The Negatives:

1. Credit history. Filing for bankruptcy will have a negative effect on your credit score. But you can also rebuild your credit score with thoughtful and careful spending after you’re done with your bankruptcy case. Also, it may be better to take a hit to your credit score now than to go on carrying an increasing debt load that leads to other negative effects on your credit score over time. Also with a bankruptcy filing, it eventually gets deleted from your credit history.

2. You can only file for Chapter 7 bankruptcy once every 8 years. If you were to need to file for bankruptcy again during the time period, Chapter 13 would be the option available to you. However, once you get your fresh start, hopefully you will be able to avoid the need to file for bankruptcy again.

3. Loss of home. It is possible to lose your home in a bankruptcy filing. You may be protected by a homestead exemption. But it depends on the amount of equity in your home. This is an issue that an experienced Las Vegas bankruptcy attorney will be able to help you figure out and plan appropriately for.

The Upshot

Working with an experienced Las Vegas bankruptcy attorney will enable you to optimize the benefits you get from the bankruptcy process. And that can add up to a lot of money saved.

For more questions about the consequences of filing for bankruptcy in Las Vegas, feel free to contact an experienced Freedom Law Firm Las Vegas bankruptcy attorney at 702-745-8584 for a free initial consultation.