Is Bankruptcy A Right Decision For Me?
There are a few red flags that indicate that bankruptcy may be your best option to get you back on track financially. If these below signs occur, filing for bankruptcy may be the only solution:
- Robbing Peter To Pay Paul-This happens when you pay one credit card by taking out a cash advance on another credit card. As long as you don’t make it a habit, transferring credit card balances to a lower interest card is not a necessarily bad. However, what often happens is that you’ll keep on using the old credit card. So, instead of one credit card, you’ll now have two credit cards to worry about instead of just the one credit card.
- Taking Out Pay Day Loans-Payday loans can be over 500% interest. Payday loans business model is to put a borrower in perpetual debt. Also, by taking out a payday loan now, you will likely come up short next payday. So, you’ll either extend your loan or take out another payday loan with another lender. But, don’t worry you can put these payday loans into your bankruptcy.
- Wage Garnishment-In Nevada, a creditor who has a default judgment against you, can garnish up to 25% of your paycheck. To families, living paycheck to paycheck, this is devastating. Filing for bankruptcy will stop garnishments, and if you’re able to file a chapter 7 bankruptcy, you’ll likely have that debt from the garnishment discharged. You Take Money From Retirement To Pay Bills– First of all, in almost all cases, you will be able to keep your retirement account if you declare bankruptcy. So, unless an absolute emergency comes up, you should not take money out of your retirement to pay bills. On a side note, taking out early retirement may result in heavy tax penalties, and taxes are difficult if not impossible to discharge
- Your Health Is Negatively Effected-Money problems lead to stress and stress is a killer. So, if because of debt, you’re consumed with worry, and you feel there is no way out, you should consider declaring for bk.
If I file For Bankruptcy In Las Vegas, Will I be Able To Keep My Car or House?
This answer is based on the assumption that you are not behind on either you automobile payments or mortgage payments. A Chapter 7 bankruptcy will not save your house or car if you are not up-to-date on your payments. The answer to both the questions is that: “It Depends.” Through the use of exemptions, you will be able to keep most of your property. (Exemptions allow you to keep specific property when you declare bankruptcy) Nevada does though have very generous exemption laws. So, most debtors, filing a 7, will not have to worry about the trustee taking their property. Under Nevada’s exemption laws, you’ll be able to keep a single automobile (per filer) worth up to $15,000. Also, if you file a homestead declaration, you will be able to keep a home with up to $550,000 in equity. Please note, you will have to live in your house to take advantage of the homestead exemption. Click here for the Clark County Recorder’s Website. You’ll get information on how to file a homestead declaration. Click here to download the declaration of homestead form. In summary, if the equity in your car is worth less than $15,000 and you have less than $550,000 in equity in your home you will not have to give up your car if you decide to file.