Bankruptcy is a legal process through which people who cannot afford to repay their debts to creditors may seek relief from some or all of their debts. In Nevada, bankruptcy is imposed by a court order, often initiated by the debtor.
Bankruptcy is a special area since many of our clients, including you, are faced with financial problems that can often only be addressed by declaring bankruptcy under the commercial and personal bankruptcy structures. Individuals struggling with a broad range of financial problems can benefit from bankruptcy, including but not limited to:
The most critical concern when filing for bankruptcy should be how the bankruptcy can impact your assets, employment, and life in the future. Many people feel that declaring bankruptcy would lead to financial disaster for the rest of their lives. Thankfully, this is not the case. Though bankruptcy is not for all, for those who are drowning in debt, it often has more advantages than disadvantages. Whatever the circumstances, it’s critical to speak with our experienced Henderson bankruptcy lawyer at Black Mountain Legal to discuss your options. We offer honest and realistic guidance on whether bankruptcy is the right choice for you as one of the most trusted bankruptcy lawyers in Henderson, Nevada.
Almost all individual bankruptcies are voluntary, which means the debtor files a petition with the Bankruptcy Court, typically under Chapter 7 or Chapter 13 of the United States Bankruptcy Code.
If you file under Chapter 7, you’ll also need to include a schedule of your assets and liabilities, a schedule of your current income and expenses, a statement of your financial affairs, and other related documents, as well as a certificate stating that you’ve undergone credit counseling and other similar paperwork. We’ll prepare and file the appropriate documents, but we’ll need your input to make sure all of the details are right in your case.
When you file for bankruptcy under Chapter 13, you must attend a creditors’ meeting, sign a payment plan with the bankruptcy court, and pay the trustee the necessary payments.
The reality is that for many people who are swimming in debt, bankruptcy is a wise and viable choice. In reality, declaring bankruptcy is an effective and reasonable way to fix your financial problems. In certain cases, however, bankruptcy may not be the best choice. Talk to our Henderson Bankruptcy Lawyer at Black Mountain Legal about your appropriate options and alternatives to bankruptcy
Chapter 7 is the most common type of bankruptcy, and will generally discharge your unsecured debts, such as credit card debt, medical bills and unsecured personal loans.
In a Chapter 7 bankruptcy, the individual is allowed to keep certain exempt assets. Most secured debts, however (such as real estate mortgages and security interests for car loans), survive. (Meaning the debt remains and the asset will have to be either paid off or sold) The value of the property that can be claimed as exempt varies in Nevada depending on if it is a home or vehicle. Nevada has other personal property exemptions as well. Other assets, if any, are sold (liquidated) by the trustee to repay creditors. Many types of unsecured debt are legally discharged by the bankruptcy proceeding, but there are various types of debt that are not discharged in Chapter 7.
Individuals with regular income typically develop a plan to repay all or part of their debts. Debtors typically propose a repayment plan to make installments to creditors over 3-5 years.
Chapter 13 offers individuals a number of advantages over liquidation under chapter 7. Chapter 13 offers individuals an opportunity to save their homes from foreclosure. By filing under this chapter, individuals can stop foreclosure proceedings and may cure delinquent mortgage payments over time. Nevertheless, they must still make all mortgage payments that come due during the chapter 13 plan on time. Chapter 13 also allows individuals to reschedule secured debts (other than a mortgage for their primary residence) and extend them over the life of the chapter 13 plan. Doing this may lower the payments. Chapter 13 also has a special provision that protects third parties who are liable with the debtor on “consumer debts.” This provision may protect co-signers. Finally, chapter 13 acts like a consolidation loan under which the individual makes the plan payments to a chapter 13 trustee who then distributes payments to creditors. Individuals will have no direct contact with creditors while under chapter 13 protection.