Nebraska Bankruptcy Defense Lawyers
Navigating the complexities of bankruptcy can be overwhelming, but with the right legal guidance, you can reclaim your financial stability. At Delancey Street, we specialize in bankruptcy defense, providing Nebraska residents with the expertise and support they need to overcome financial distress. Our team of experienced attorneys is dedicated to helping you understand your options and guiding you through every step of the bankruptcy process.
Understanding Bankruptcy in Nebraska
Bankruptcy is a legal process designed to help individuals and businesses eliminate or repay their debts under the protection of the federal bankruptcy court. In Nebraska, the most common types of bankruptcy filings are Chapter 7 and Chapter 13.
Chapter 7 Bankruptcy
Chapter 7, often referred to as “liquidation bankruptcy,” allows you to discharge most of your debts. This type of bankruptcy is ideal for individuals with limited income and few assets. Under Chapter 7:
- Automatic Stay: Once you file, an automatic stay goes into effect, halting most collection actions against you.
- Asset Liquidation: A court-appointed trustee will liquidate your non-exempt assets to pay off creditors.
- Debt Discharge: Most unsecured debts, such as credit card debt and medical bills, can be discharged.
Eligibility: To qualify for Chapter 7, you must pass the means test, which compares your income to the median income in Nebraska. If your income is below the median, you are eligible for Chapter 7.
Chapter 13 Bankruptcy
Chapter 13, known as “reorganization bankruptcy,” is suitable for individuals with a regular income who can repay a portion of their debts over time. Key features include:
- Repayment Plan: You will propose a 3- to 5-year repayment plan to pay back creditors.
- Asset Protection: Unlike Chapter 7, you can keep your assets while making payments.
- Debt Adjustment: Some debts may be reduced or eliminated through the repayment plan.
Eligibility: To file for Chapter 13, you must have a steady income and unsecured debts below $419,275 and secured debts under $1,257,850.
The Bankruptcy Process in Nebraska
Filing for bankruptcy in Nebraska involves several steps, each requiring careful attention to detail. Here’s a comprehensive guide to help you understand the process:
1. Credit Counseling
Before filing, you must complete a credit counseling course from an approved agency. This course helps you evaluate your financial situation and explore alternatives to bankruptcy. You must complete this course within six months before filing and include the completion certificate with your bankruptcy petition.
2. Filing the Petition
You will need to file a bankruptcy petition with the Nebraska bankruptcy court. This petition includes detailed information about your financial situation, including:
- Income and Expenses: Itemize all sources of income and monthly expenses.
- Assets and Liabilities: List all your assets and debts.
- Recent Transactions: Disclose any significant financial transactions within the past two years.
3. Automatic Stay
Upon filing, an automatic stay is issued, which stops most collection activities, including wage garnishments, lawsuits, and harassing phone calls from creditors.
4. Meeting of Creditors (341 Meeting)
Approximately 30 to 45 days after filing, you will attend a meeting of creditors, also known as the 341 meeting. During this meeting, the trustee and creditors can ask questions about your financial affairs and the information in your bankruptcy petition. It is crucial to be honest and thorough in your responses.
5. Debtor Education Course
After the 341 meeting, you must complete a debtor education course to receive a discharge. This course focuses on financial management and budgeting to help you avoid future financial problems.
6. Discharge of Debts
For Chapter 7, the discharge typically occurs within 3 to 4 months after filing. For Chapter 13, the discharge happens after you complete the repayment plan, which can take 3 to 5 years.
Nebraska Bankruptcy Exemptions
Nebraska has specific exemptions that allow you to protect certain assets from being liquidated in a Chapter 7 bankruptcy. These exemptions include:
- Homestead Exemption: Up to $60,000 of equity in your home can be protected.
- Wage Exemption: Up to 85% of unpaid wages or 75% of earned but unpaid wages.
- Personal Property: Certain personal property, such as household goods, clothing, and tools of the trade, up to specific values.
Common Myths About Bankruptcy
There are several misconceptions about bankruptcy that can deter individuals from seeking the help they need. Let’s debunk some common myths:
- Myth 1: Bankruptcy Ruins Your Credit Forever: While bankruptcy does impact your credit, it also provides a fresh start. With responsible financial behavior, you can rebuild your credit over time.
- Myth 2: You Will Lose Everything: Nebraska’s exemptions allow you to keep essential assets, such as your home, car, and personal belongings.
- Myth 3: Only Irresponsible People File for Bankruptcy: Many people file for bankruptcy due to unforeseen circumstances, such as job loss, medical bills, or divorce. It is a legal tool designed to help you regain financial stability.
Why Choose Delancey Street?
At Delancey Street, we understand the emotional and financial stress that comes with bankruptcy. Our experienced attorneys are committed to providing personalized and compassionate legal services. Here’s how we can help:
- Expert Guidance: We will guide you through every step of the bankruptcy process, ensuring you understand your options and rights.
- Customized Solutions: We tailor our services to meet your unique financial situation and goals.
- Comprehensive Support: From filing the petition to attending court hearings, we provide comprehensive support to help you achieve the best possible outcome.
Client Story: Jane’s Journey to Financial Freedom
Jane, a single mother from Omaha, faced mounting medical bills after an unexpected illness. Despite working two jobs, she couldn’t keep up with her debts and feared losing her home. Jane reached out to Delancey Street for help. Our team assessed her situation and recommended Chapter 13 bankruptcy. We helped Jane create a manageable repayment plan, allowing her to keep her home and discharge a significant portion of her debts. Today, Jane is debt-free and has regained control of her finances.
Contact Us Today
If you’re struggling with debt and considering bankruptcy, don’t wait. Contact Delancey Street for a free consultation. Our experienced Nebraska bankruptcy defense lawyers are here to help you navigate the complexities of bankruptcy and achieve financial freedom. Call us or visit our website to schedule your appointment today.
Remember: Bankruptcy is not the end; it’s a new beginning. With the right legal support, you can overcome financial challenges and build a brighter future. Let Delancey Street be your guide on this journey to financial recovery.