Chapter 7 Bankruptcy in Nebraska provides debt relief to you by discharging (eliminating)most debts. In exchange for this debt relief, you may have to liquidate your assets (convert to cash) and any money recovered is then distributed evenly amongst your creditors.
Filing chapter 7 bankruptcy in Nebraska is beneficial because it is the only truly quick way to stall or even stop a foreclosure, eliminate garnishments or judgments, and the repossession of property.
Not all assets are liquidated. Under Nebraska law, certain assets can be exempt from being liquidated in bankruptcy. In Nebraska, your clothing, retirement accounts, household goods and residence are usually exempt. In addition, we may be able to exempt equity in cars you use for employment as well as cash.
Our Omaha Bankruptcy Lawyer and Lincoln, Nebraska Bankruptcy Attorney will do a thorough analysis to determine whether your assets are exempt, advise you on what cannot be saved, if any, or whether a different type of bankruptcy is in your best interest, such as a Chapter 13 reorganization.
New additions to the Bankruptcy Code in 2005, called the “Bankruptcy Abuse Prevention and Consumer Protection Act” or BAPCPA, tries to screen individuals out of qualifying for Chapter 7 Bankruptcy through what is called the “means test“. This test basically states that if your income is above the average income for a household of your size, then you do not qualify for Chapter 7 and must file a Chapter 13 Reorganization Bankruptcy. You need a qualified bankruptcy attorney to determine whether you have exceptions to the means test that allow you to pass the test despite having more income than the average Nebraska household.
Our Chapter 7 Bankruptcy Nebraska Attorney at Lincoln Bankruptcy will determine whether you qualify for Chapter 7 Bankruptcy or not and also determine whether your interests are better served with a different type of bankruptcy.
Because the means test determines your income based on the previous 6 months, it may be a situation that waiting to file a petition or filing a quick bankruptcy case could be dependent on passing the means test. Lincoln Bankruptcy will analyze your income situation to determine whether waiting to file or filing immediately would be beneficial under your situation.
Chapter 7 Bankruptcy Nebraska Debt Relief
In addition to the filing of a petition and passing a means test, every debtor is required to participate in a credit counseling course both before filing bankruptcy and before receiving a discharge.