YOUR HOME IN CHAPTER 7 BANKRUPTCY IN LAS VEGAS
SAVE YOUR HOME!

YOUR HOME IN CHAPTER 7 BANKRUPTCY IN LAS VEGAS

YOUR HOME IN CHAPTER 7 BANKRUPTCY IN LAS VEGAS

Save Your Home In Chapter 7 Bankruptcy in Las Vegas!

What happens to your home when you file Chapter 7 Bankruptcy in Las Vegas depends two things:
1. How long you have lived in Nevada; and
2. How much equity you have in your home

1. How long have you have lived (been “domiciled”) in Nevada determines how much equity in your home you can keep.

Equity is defined as the difference between the worth of the house and liens and encumbrances (also known as “above water”).

Example: A house worth $250,000 with a $150,000 mortgage has $100,000 in equity.

The following is a quick reference chart to determine which “exemptions” apply (how much equity you can keep) depending on how long you have been “domiciled” in Nevada.

If you have been domiciled in Nevada more than 40 months, you may claim the first $550,000 of equity in your home.

If you have been domiciled in Nevada between 24 and 39 months, you may claim the first $125,000 of equity in your home (unless you used the proceeds from sale of another homestead to buy your current home that you are claiming a homestead on).

If you have been domiciled in Nevada between 91 – 729 days, you can use the state exemptions of the state where you lived the greater part of the last 180 days. In other words, the Nevada $550,000 homestead exemption DOES NOT APPLY.

If you have been domiciled in Nevada for less than 90 days, it is best to wait at least 91 days to file since it is possible that NO exemptions can be claimed.

2) How much equity determines what happens to your home in Chapter 7 Bankruptcy.

Now that you know how much home equity you can exempt (see above), lets look at a few different examples:

HOUSE WITH A MORTGAGE AND NO EQUITY
Also known as “Under Water” which is most common in Las Vegas

If your mortgage is more than the value of your house, your home “rides through” and is unaffected by the bankruptcy.

Example: House worth $180,000 with a $250,000 mortgage = No Equity

If you want to keep your home and you are current on your mortgage payments, continue making regular mortgage payments and your home is unaffected by the bankruptcy. The best part is after you receive your bankruptcy discharge if you stop making mortgage payments, the bank can only foreclose on the house but they CANNOT hold you personally liable since your personal liability was wiped out as part of your Chapter 7 Bankruptcy discharge.

If you are not current on your mortgage payments and want to keep your home, consider either Chapter 13 Bankruptcy or a Loan Modification.

If you do not want to keep your home, you can “let it go” and the mortgage company cannot hold you liable since your personal liability was discharged (wiped out) as part of your Chapter 7 Bankruptcy discharge. It does not matter if you are current on the mortgage payments or not.

HOUSE WITH A MORTGAGE AND EQUITY
Also known as “Above Water” which is less common in Las Vegas

If your home has equity, use the following examples as a guide.

Example: House worth $180,000 with a $30,000 mortgage = $150,000 Equity.

If you want to keep your home and you are current on your mortgage payments, you can keep the first $550,000 in equity (eligible Nevada residents). So in other words, using the example above, if you file Chapter 7 Bankruptcy and you want to keep your home, the trustee can not sell your home to get the $150,000 in equity. If you want to keep your home, you must continue making your mortgage payments. The best part is after you receive your bankruptcy discharge if you stop making mortgage payments, the bank can only foreclose on the house but they CANNOT hold you personally liable since your personal liability was wiped out as part of your Chapter 7 Bankruptcy discharge.

If you want to keep your home and you are not current on your mortgage payments, you can still file Chapter 7 Bankruptcy but the bank will foreclose on your home. Consider Chapter 13 Bankruptcy.

If you do not want to keep your home, you can keep the first $550,000 in equity (for eligible Nevada residents). In other words, using the example above, if you file Chapter 7 Bankruptcy and you do not want to keep your home, the trustee will sell the your home, take the proceeds of $180,000 and distribute it as follows: $30,000 to pay off the mortgage and the remaining $150,000 goes to you minus the trustee’s expenses. It does not matter if you were current on the mortgage payments or not.

HOUSE WITH NO MORTGAGE AND ALL EQUITY
Also known as “Owned Outright”

If you own your home outright with no mortgage, you can keep up to the first $550,000 in equity.

Example: House worth $550,000 or less with no mortgage or encumbrances (judgments, etc.).

You can file Chapter 7 Bankruptcy and your house is unaffected by the bankruptcy.

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To find out if a Bankruptcy in Las Vegas is right for you, take the first step by scheduling a consultation. Here is what you can expect:
• Attorney Colmenares will personally review your entire financial situation and develop a debt relief plan that is custom tailored to your specific needs. All information remains strictly confidential.
• If Bankruptcy is right for you, we will let you know the cost and what paperwork you need to provide. There are no hidden fees.
• With as little as $100 down* you will be able to tell your creditors you are now represented by Attorney Colmenares. This should stop debt collectors from calling and harassing you.
• If Bankruptcy is not right for you, we will advise you of your non-bankruptcy alternatives.

Schedule Your BANKRUPTCY CONSULTATION.

PERSONAL STATEMENT FROM ATTORNEY NEIL E. COLMENARES

Testimony

"Upon my first contact with Atty. Neil I felt at ease with talking to him about my having to file for bankruptcy. He was very professional and personable and explained everything in detail what I would have to do. As such, I returned to him with all my records and data in order. Afterwards he explained the next processes that I would have to follow. Because I was fully prepared his job to present it to the court was prudent and expeditious. As a result, my case was completely settled in less than three months. Neil is a man of his word and action and I certainly would recommend him to anyone in need of legal service, but with a word of advice, I would recommend that you should be prepared to do whatever he requests in order to expedite your case."
Judy W.
"When the housing market tanked and i got laid off I needed help with a short sale of my home. Mr. Colmenares was recommended to me by a co-worker. Mr. Colmenares made the process as painless and smooth as possible. I highly recommend Mr. Colmenares to anyone who is in the same position as I once was. If your looking for a pro on your side, look no further."
Steve W.
"Neil's a very reasonably priced lawyer. Handled my case promptly and professionally. Couldn't ask for better results. Saved me thousands of dollars and avoided costly lawsuits. Will definitely use Mr. Colmenares for future legal needs."
Emaan O.
"The best attorney I have ever dealt with. He made me feel good about going to see an attorney. Anytime I had questions in the process, our calls were answered promptly, He always got back to me and I never had to case him down. Mr. Colmenares even went out of his way to let me see him late on a Saturday. He's not like any other attorney that only cares about your money. He answered all my questions in detail. and gave me advice in how to situate my problems. I didn’t even have to ask him questions because that’s how specific and detailed he was. It was like he read my mind. Always thinking ahead, and was on top of my case. Worth every dollar spent. Highly recommend."
Jack H.