With the continued disruptions caused by the COVID-19 pandemic, many families in Las Vegas and throughout Clark County are experiencing financial issues. Chapter 13 bankruptcy offers a potential solution for people dealing with financial distress. The American Bankruptcy Institute (ABI) reports that nearly 700 people filed for Chapter 13 bankruptcy protection in Nevada in 2021 alone. If you are considering filing for Chapter 13, you need to understand how the repayment plan will work. Here, our Las Vegas Chapter 13 bankruptcy lawyer provides an overview of Chapter 13 repayment plans in Nevada.
Know the Basics: What is Chapter 13 Bankruptcy?
The primary alternative to Chapter 7 personal bankruptcy, Chapter 13 bankruptcy is often referred to as a wage earner’s plan. As explained by the Nevada Bankruptcy Court, this type of personal bankruptcy protection exists for “an individual with a regular income who is overcome by debts but believes such debt can be repaid within a reasonable period of time”.
Through a Chapter 13 bankruptcy filing, many (or all) of a petitioner’s outstanding debts will be rolled into a single monthly payment. Known as the Chapter 13 repayment plan, the arrangement in question is designed to help the petitioner resolve all obligations to creditors by making installment payments over the course of three to five years.
Developing a Chapter 13 Repayment Plan in Nevada
Every Chapter 13 repayment plan is different. The structure and duration of the plan will depend on many factors, including the extent of debt and the financial means of the petitioner. In Nevada, Chapter 13 bankruptcy petitioners are required to submit their proposed repayment plan within 14 days of their filing.
An experienced Las Vegas bankruptcy lawyer can help you review your financial situation and develop a viable Chapter 13 repayment plan. Depending on the specific circumstances, a Chapter 13 bankruptcy plan may involve the reduction (or elimination) of the interest rate, waiver of certain penalties and fees, and even the forgiveness of principal and already incurred interest.
A Chapter 13 Bankruptcy Plan Must Be Approved
You do not have the unilateral right to structure your own Chapter 13 repayment plan. The plan must be reviewed and approved by the bankruptcy court. To ensure that your plan is approved, it is imperative that you submit a strong, well-documented case along with your Chapter 13 bankruptcy petition. Creditors have the right to ask questions and challenge a plan—but a bankruptcy court in Nevada can also approve a repayment plan over the objections of creditors.
Call Our Las Vegas, NV Chapter 13 Bankruptcy Attorney Today
At Vohwinkel Law, our Las Vegas bankruptcy lawyer has the skills and expertise to help people navigate the Chapter 13 bankruptcy process. If you have questions about Chapter 13 repayment plans, we are available as a resource. Give us a call at 702-735-1500 or connect with us online for your confidential case review. With an office in Las Vegas, we provide Chapter 13 bankruptcy representation throughout Southern Nevada, including in Henderson, and North Las Vegas.