Nevada bankruptcy law
Bankruptcy law is a legal proceeding in which the bankrupt individual who cannot pay back their outstanding bills get a fresh financial start. The provision of filing for bankruptcy is available only in federal courts, and its a federal law which is applicable to all the states. However, all the states have got exemptions law in their concerned state jurisdiction. The state of Nevada has got Nevada exemptions law which is applicable to all the resident of the Nevada.
Filing bankruptcy in the court of law stops all the creditors from seeking to collect debts in any kind from the debtor or bankrupt individual, until the debts are sorted out according to the bankruptcy law of federal government. There are many procedures which need to be followed before and after filing bankruptcy in Nevada. As per the 2005 bankruptcy act
credit counseling all the bankrupt individual debtors filing bankruptcy on or after October 17, 2005 have to go for credit counseling within six months before filing for bankruptcy and have go for financial management instructional course after filing bankruptcy. In Nevada the bankrupt individual residing in the jurisdiction of Nevada can use the federal supplement exemptions along with the Nevada exemptions while filing for bankruptcy.
According to the 2005 bankruptcy act means test all the income and expenses of the bankrupt individual will be analyzed to determine whether the bankrupt individual is to qualify for chapter 7 or 13. The gathering of all the paperwork is another process to begin the bankruptcy process.
All the current income sources, major financial transactions for the last 2 years, monthly living expenses, debts (secured and unsecured), property, tax returns for the last 2 years, deeds to any real estate and the titles owned by the bankrupt individual has to be itemized. After submitting all the paperwork with the federal bankruptcy court, an automatic stay goes into effect immediately. Thereafter the court will appoint a bankruptcy trustee to control the debts and property of the bankrupt individual. One month after the filing of the bankruptcy the trustee will call a first meeting of creditors which the debtors must attend at any cost ; which is known as 341 meeting of creditors.
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