What You should Know before Filing for Bankruptcy

by | Oct 1, 2014 | Law

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If you are currently having issues paying your debts or you have been threatened with repossession, foreclosure or garnishment, you might want to consider filing for bankruptcy. This is, in many cases, a smart and an effective way to deal with these types of financial issues. However, it is important to keep in mind, if you want relief from creditors; you have to be fully prepared. This is why it may be a good idea to hire a Henderson Nevada Bankruptcy Attorney‏ for assistance with the process.

If you are ready to file for bankruptcy, there are certain factors you should understand, which are highlighted here.

What Type of Bankruptcy will You File?

There are two basic options: Chapter 7 bankruptcy or Chapter 13 bankruptcy.
Chapter 7 bankruptcy, which is also known as a fresh start bankruptcy, will allow all of the unsecured debts that you have to be canceled or discharged; however, any nonexempt property has to be given to a trustee to pay the various creditors. Secured property can be retained if you are current on your payments and if you are able to continue with the payments.

Chapter 13 bankruptcy, which is referred to as reorganization, allows you to retain possession of all of your valuable property. Without bankruptcy protection, this may be lost. You will only be able to hold on to this property if you continue to make regular payments.

Wait to File – but not too Long

This legal proceeding allows you to receive a fresh start financially speaking by eliminating your legal obligations to pay off your debts. However, because you are only allowed to file every six years, you need to ensure that you pick the right time to file. If you wait too long, it will give your creditors the opportunity to seize your property. If you file too quickly, you may find yourself in the same situation, just a few years later.

Do you need the services of a Henderson Nevada Bankruptcy Attorney? If so, visit the Law Office of Hayes & Welsh. They have significant legal experience and knowledge, helping clients collect debts efficiently, effectively and as quickly as possible.