Inflation Is Rising, Will Bankruptcy Filings In Las Vegas Increase?
Inflation Is Rising, Will Bankruptcy Filings In Las Vegas Increase?
How Could Bankruptcy Help You Handle Your Debts During Inflation?
In case you hadn’t already noticed, everything is a lot more expensive lately. The price of gas per gallon has soared over $5. Current grocery prices would’ve been shocking just a few months ago. Housing costs, whether you are looking to buy or rent, have increased sharply in the past year. And chances are, your boss hasn’t given you a raise that makes up for all these increasing expenses. Unless you were already living far below your means, inflation could be setting you up for an unfavorable financial situation. When your monthly expenses exceed your income, you might rely on lines of credit to make due. If your debts are unmanageable and your creditors are coming to collect, it might be time to declare bankruptcy. To speak with an experienced Las Vegas bankruptcy lawyer about your situation, call 702-370-0155.
Inflation occurs when the price of living increases from year to year. Normal inflation rates can be an indicator of a healthy economy. But when inflation happens too quickly, most of the population can’t keep up with ordinary living expenses. This can cause the market to crash and burn. Inflation rates are currently the highest they have been in years. In fact, inflation has caused the cost of living in Nevada to increase by almost 15%. That is an increase of $805 per month for the average Nevada household. Unless your household income has increased by $805 per month recently, you may be struggling to make ends meet.
If you’re accruing around $800 per month in debt, you need to do something about it quickly. With interest rates and other penalties, your debt could balloon to an amount you will never be able to repay without winning the lottery. This might be the time to consider bankruptcy.
Where Are The Bankruptcy Filings?
Despite the pandemic causing financial hardship for millions of families, bankruptcy filings are actually at a low. As of June 2022, bankruptcy filings are down 29% from the same time in 2021. Nevada was one of the states hit the hardest economically by COVID-19, so it makes sense that filings would be high last year when government pandemic protections were expiring. While business has been picking back up in Las Vegas, bankruptcy filings have come to a lull. But with the cost of living increasing at a meteoric rate, we might see bankruptcy filings start to pick back up again soon.
Examples of Dischargeable Inflation Debts
Unfortunately, filing bankruptcy can’t do anything to stop inflation in general. But if you have accrued debts while figuring out how to pay for rising costs, you might be able to discharge them into bankruptcy. Here are some examples.
You previously leased or financed a higher-end vehicle. It’s now worth less than your loan’s balance, could use a trip to the mechanic, and needs too much gas. You can surrender the vehicle in your bankruptcy, as well as the debt attached to it. Some lenders will work with you just days after your case is filed to get you into a new vehicle that fits your lifestyle better.
While looking for a higher-paying job, you largely relied on credit cards to buy groceries, gas, and other household necessities. You now have a job that allows you to pay for regular expenses, but the interest payments on your credit cards are holding you back. Bankruptcy can clear those credit cards so you can move forward with a fresh slate.
You’re finally starting to get your financial footing when an unexpected medical emergency occurs. Even with your health insurance, you are left with a hospital bill in the thousands of dollars. Bankruptcy discharges medical debts so that no one must live with the burden of debt simply for staying alive.
You or your spouse’s income is seasonal, and your overall income is still recovering from the pandemic. When times were tough, you took out a second mortgage on your home. Under certain circumstances, a Chapter 13 bankruptcy could allow you to keep your home, discharge the junior mortgage, and deal with any other debts you may have as well.
Should I File For Bankruptcy In Nevada?
Bankruptcy is not a decision that should be taken lightly. There are several factors that go into whether you should file for bankruptcy. A major factor for you could be the chapter you would file. Most Las Vegas residents will be choosing between Chapter 7 and Chapter 13 when they file for bankruptcy. You might qualify for both, leaving you the choice between the two. But for many people, their income level leaves them only one option. If you are unsure about your eligibility, speak to a Nevada bankruptcy lawyer to see which chapter(s) you can file.
Chapter 7 bankruptcy is the most filed in Nevada. It clears most types of unsecured debts in a matter of 3-6 months. One of the reasons more people don’t file for Chapter 7 bankruptcy is because it has income restrictions. You must show you qualify based on income in one of two ways. If your average household monthly income from the past 6 months is lower than Nevada’s state median, you are eligible to file for Chapter 7 bankruptcy in Nevada. If your household income exceeds the state median, you might still be able to file for Chapter 7 bankruptcy. You will need to use the means test, which calculates your disposable monthly income to see if you have enough to make significant progress on repaying your debts. You should contact a Nevada bankruptcy lawyer for assistance in conducting the means test.
You might not qualify for Chapter 7 bankruptcy, or it might not provide you as many benefits as Chapter 13 bankruptcy based on your individual circumstances. Chapter 13 bankruptcy allows you to pay off your debts in a 3–5-year payment plan. Unlike Chapter 7 bankruptcy, this gives you the opportunity to deal with secured and priority debts. You will also be protected from lawsuits, wage garnishments, etc., from your creditors during your bankruptcy. A Nevada bankruptcy lawyer can help you determine your eligibility and estimate what your plan payments might be.
Quality Las Vegas Bankruptcy Representation With Fair Pricing & Payment Plan Options
The world is already stressful and confusing enough without adding a bankruptcy filing into your life. Bankruptcy petitions are dozens of pages long, leaving you endless opportunities to make errors that could jeopardize your case. Without familiarity with bankruptcy law and procedure, you could pay extra fees, have your assets seized, or have your case dismissed. Any costs you may have saved by not hiring a lawyer will be out the window. Don’t assume that you can’t afford skilled bankruptcy representation, because our Las Vegas bankruptcy team has post-filing payment plans that ease the costs of filing.
It’s tough to know who to trust when it comes to bankruptcy attorneys. You might see fresh paint on the signs of some bankruptcy offices now that inflation is so high. But Las Vegas Bankruptcy Lawyers has decades of experience representing Las Vegas residents in Chapter 7 and Chapter 13 bankruptcy. You may even qualify for our payment plan options that allow you to pay for your fees after your petition is filed. Contact us or call 702-370-0155 today to see if you qualify with your FREE consultation.