In this current economic climate one can feel overwhelmed and confused by what to do. Bankruptcy in Las Vegas is a very serious issue. Many people may not know the difference between Chapter 7 and Chapter 13. Before you talk to a bankruptcy lawyer in Las Vegas here are some things you will want to know:

-Declaring Chapter 13 bankruptcy allows the debtor a chance to pay off his/her debts whereas a Chapter 7 filing compels the bankruptcy court to have all non-exempted assets sold in order to pay creditors.

-A Chapter 13 bankruptcy filing allows the debtor to restructure their debt through a bankruptcy attorney. Based on the debtor"s income, their attorney will recommend one affordable monthly payment for all debts. A regular income is needed to prove the debtor is able to make such payments.

-Under Chapter 13 bankruptcy the debtor is allowed to keep all the property they own. Chapter 13 bankruptcy is similar to a debt consolidation program, but it"s run by the Federal Government.

-Under Chapter 7 bankruptcy the debtor is not responsible to repay their former debt like with Chapter 13, though certain liens such as real estate mortgages and security interests for car loans may survive.

-Under Chapter 7 bankruptcy many types of unsecured debt are legally discharged by the bankruptcy proceeding, but many exemptions, such as child support, income taxes less than 3 years old, property taxes, and student loans will remain in effect.

-Chapter 13 bankruptcy repayment must begin within 45 days following the original filing.

-A bankruptcy lawyer will draw up a plan for the debtor to repay all creditors with interest-free repayments. The plan will have an outline of all the payments to be made, which has a limit of up to five years.

-Chapter 13 bankruptcy offers a discharge option, which Chapter 7 bankruptcy does not. The debtor will be given a full bankruptcy plan discharge upon completion of their payment plan, which, again, can be up to five years in duration.

-Under Chapter 13 the creditor(s) do not have to approve the repayment plan, only the bankruptcy court must approve of the repayment plan.

-If at any time during the debtors Chapter 13 bankruptcy something occurs that impairs their ability to make payments, the bankruptcy attorney can prepare a new repayment plan to reflect the more current financial situation of the debtor.

It is important to know that bankruptcy laws are continually being adjusted and finding a competent Las Vegas bankruptcy attorney is essential. Be sure to do research before talking to a professional. I do hope this article helped shed some light on what can be a very difficult and confusing time for you.