If you're considering declaring personal bankruptcy, these are stressful times. For starters, you must decide which option—Chapter 7 or Chapter 13—is better for you. As an experienced bankruptcy Las Vegas attorney I can help you better understand your options and move forward.
Let's start with a quick and easy review of the differences between the two types of bankruptcy. Chapter 7 is a liquidation, while Chapter 13 is a reorganization of your debts. You'll form a repayment plan and pay off part or all of what you owe, based on your ability to pay.
We'll now look at some of the main advantages of Chapter 13 bankruptcy.
You're allowed to keep your assets. When you have major assets such as cars, jewelry, art and other valuable possessions you don't want to risk losing to a bankruptcy, Chapter 13 is your best option.
Debt interest will stop accruing. Chances are good that you've taken on a lot of credit card debt in addition to what you're paying on your car and mortgage. You're currently struggling just to keep up with the high interest-rate payments, fees and penalties for late payments. Your Chapter 13 plan will freeze all of that interest as you pay down all or part of what you currently owe.
You'll get good with the IRS. The last thing you want is to let federal, state and other tax burdens escalate. That's a good way of eventually losing your home. In a Chapter 13 bankruptcy, your taxes will get paid and the IRS will stay off your back until discharge.
The payments are manageable. As part of your filing, you'll let the bankruptcy court tabulate your income, assets, and debts and run it through the Nevada Means Test. This will help determine what you can realistically pay on a monthly basis for a period of time that could be between three and five years. It won't be easy, but those payments will at least be possible, which is more than you can say about your current situation.
It holds off foreclosure proceedings. Nothing is more terrifying than the looming possibility of losing your home and becoming potentially homeless. A Chapter 13 bankruptcy filing will stave off the threat of foreclosure until your debts have been discharged and you're in a better situation to continue paying your mortgage.
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As an experienced bankruptcy Las Vegas attorney, I know what you're going through and that it's an emotional as well as financial burden. Call me today and I'll help you move forward with the strategy that's best for you and your situation and brings peace of mind.