Checklist and Considerations Prior to Bankruptcy in Las Vegas

If you want to file for bankruptcy in Las Vegas, you can help make the process smoother by taking a few simple steps in advance. Collecting certain information, rearranging aspects of your affairs, and avoiding pitfalls can all make it easier to achieve a fresh start through bankruptcy. To learn more about these pre-bankruptcy steps, consider scheduling a consultation with an experienced bankruptcy attorney.

Creating a List of Your Assets

One of the first steps in preparing for bankruptcy is to create an inventory of all your assets. This might include a home, vehicles, bank accounts, retirement or investment accounts, and other property you may not think is relevant. A bankruptcy attorney may have a comprehensive information sheet for you to fill out after an initial consultation, but you should make a list of your assets and their values and be prepared to discuss them during your first consultation.

Figuring Out How Much Debt You Have

Another major step is to accurately determine how much debt you really have. This might be more challenging than you realize, as it is easy to forget about unpaid credit cards from years ago. You might consider getting reports from the three major credit reporting agencies to get an idea of your debts, but most bankruptcy lawyers can pull comprehensive credit reports as part of the services they provide. Still, debts like unpaid parking tickets and medical bills often don’t appear on credit reports, so you should be aware of these as well because the total amount of your debts may affect which type of bankruptcy you can file.

Avoiding Certain Transactions

If you’re planning on filing for bankruptcy, one of the most important things an experienced bankruptcy lawyer can do is provide advice on what you should and shouldn’t do while preparing to file. You may need to halt major transactions and purchases that can make your bankruptcy difficult or even impossible in certain situations. The most common examples are payments of money or transfers of assets to friends or family, which are called “preferences.” Some people think they can protect assets with transfers or continue to pay back loans from friends or family, but these have the potential to effectively disqualify you from the fresh start bankruptcy can provide.

Another potential issue is selling an asset for below its fair market value. The bankruptcy court may see this as fraudulent and refuse to grant you a discharge of your debts. Transfers into and out of trusts or LLCs can also present problems in certain situations, potentially requiring you to wait two years or more before you can safely file for bankruptcy.

Completing the Mandatory Credit Counseling Course

In Nevada, every individual must complete a mandatory credit counseling course before filing for bankruptcy. You must complete the course through an approved provider. Most providers offer the course over the phone and online, but the fee for the course can vary depending on the provider, so you might want to discuss this with your bankruptcy lawyer before signing up to take the course. The certificate you receive for completing the course is valid for 180 days, which gives you time to collect everything else you need to file for bankruptcy. Although this step might sound frustrating, it’s required and can provide meaningful insight into your financial circumstances.

Consult With a Bankruptcy Lawyer

Without question, the most important step before deciding to file for bankruptcy is to speak with an experienced bankruptcy lawyer. A common concern about bankruptcy lawyers is the fear of being “pushed into” bankruptcy. During your consultation, a bankruptcy lawyer should listen to your unique circumstances and help explore all available options, including alternatives to bankruptcy. If bankruptcy makes sense for you, a lawyer can explain which type of bankruptcy best fits your individual needs, helping guide you through the process while by providing legal advice along the way. To learn more and to schedule a complimentary consultation, contact Larson & Zirzow today.

Source: 

uscourts.gov/court-programs/bankruptcy/credit-counseling-and-debtor-education-courses