Upon filing for Bankruptcy in Nevada, an injunction, called the Automatic Stay, is imposed on all creditors prohibiting most collection actions, including wage garnishment, vehicle repossession, foreclosure, harassing phone calls and letters. The purpose of the Automatic Stay is to give the Debtor a breathing spell of relief from collection actions while the Debtor proceeds through the Bankruptcy process.
What is Bankruptcy?
Bankruptcy is a process where individuals, married couples and business entities can eliminate or restructure their debts. A Bankruptcy begins with the filing of a Bankruptcy Petition with the Bankruptcy Court.
The Debtor must also file Schedules detailing his income, real and personal property and debts. Supporting documents may be required to substantiate the Debtor’s Schedules, such as pay-stubs, bank account statements and Income Tax Returns.
A Trustee is appointed to administer the Debtor’s Bankruptcy Estate. It is the Trustee’s duty to verify the accuracy of the Debtor’s Schedules. If there is the property that is above and beyond what the Debtor is allowed to exempt, the Trustee may liquidate such asset and use the proceeds to pay creditors. The exemptions granted to a Nevada Resident is quite generous, including a Homestead, Tax Exempt Retirement Account (500K), a Vehicle for each spouse (15K), Household goods and clothing (12K), Tools of the Trade (10K) and Wild Card (1K).
At the end of the Bankruptcy process, the Debtor is granted a Discharge. A Discharge releases the Debtor from Bankruptcy and the dis-chargeable debt is eliminated.
Law Offices of Rodney K. Okano
6069 S Fort Apache Rd #100,
Las Vegas, NV 89148, USA