Omaha Bankruptcy Lawyers

If you are struggling with overwhelming debt, you need options. Fortunately, relief is available through the Bankruptcy Code. The Bankruptcy Code offers different types of bankruptcy relief, including Chapter 7 and Chapter 13 bankruptcy. 

Lentz Law, PC, LLO is committed to helping you find the right path to financial freedom. We have helped countless clients throughout Nebraska obtain the relief they need, and we are there for you, too. 

If you need freedom from debt, do not delay. Call us at (402) 526-5540 to schedule a free consultation with our Omaha bankruptcy lawyers.

Chapter 7 Bankruptcy

Chapter 7 is often referred to as “liquidation.” This bankruptcy eliminates unsecured debt. Unsecured debt is not backed by collateral such as assets or property. It is solely based on the borrower's creditworthiness. When the borrower defaults, the lender cannot seize any specific asset to recover the debt.

Examples of unsecured debt include:

• Medical bills
• Personal loans
• Credit card debt
• Student loans (in some cases)
• Certain types of unsecured lines of credit

Who Is Eligible for Chapter 7?

In Nebraska, you must primarily pass a "means test" to qualify for Chapter 7 bankruptcy. This test demonstrates that your income is at or below the state's median income level. 

If your income exceeds this amount, you may still qualify for Chapter 7. To do so, you must prove that you do not have enough disposable income to repay your debts. 

Additionally, you must complete credit counseling before filing for bankruptcy. You must also attend a meeting with your creditors and the court trustee. 

Chapter 13 Bankruptcy

Chapter 13 is also called “reorganization.” This bankruptcy gives debtors the opportunity to repay all or a portion of their debts over a designated time. 

In most cases, a Chapter 13 plan requires the debtor to make monthly payments to a trustee. The trustee then disperses these funds to creditors in a court-approved manner.

Chapter 13 plans typically last 3 to 5 years. When it is over, all debts are discharged. 

In some cases, you can use Chapter 13 to: 

• Prevent repossession of your car
• Prevent foreclosure on your home
• Prevent the suspension of your driver's license