The most common means of declaring bankruptcy is through the Chapter 7 in the bankruptcy code. This offers quicker results, and at the same time, everyone can file this type of bankruptcy – whether you are married partners, individuals, corporations or partnerships.
Lawyers such as Naimi, Dilbeck & Johnson CHTD provide help to people in Las Vegas seeking options regarding bankruptcy and protection from debt collectors.
If you don’t know what to expect and you’ve kept on looking for various websites about your debt discharge – why not try here, http://www.naimidilbeck.com/practice-areas/bankruptcy-law-attorney-las-vegas/, for information about what necessary actions need to be implemented.
According to their website, Chapter 7 is mostly known as the straight liquidation bankruptcy. As the debtor, once you have filed your bankruptcy, you will be asked to surrender your property to the court for assessment. The court will appoint a trustee who will then be in charge of liquidating these assets to pay your lenders
However, you must be well aware that tax or federal debts will not be discharged by filing bankruptcy. Certain debts, such as child or spousal support, are not affected by declarations of bankruptcy.
There are exemptions to Chapter 7 bankruptcy code under federal and state laws. You will be able to negotiate and keep some of your assets. Even if you owe money for your primary home, car or any other assets that are deemed exempted, properties that are essential for work and other activities that would help you discharge the debt are often allowed to remain in your possession. Nevada’s exemptions also protects your personal belongings and 401k.
The primary benefit of declaring bankruptcy is the freeze it forces on creditors and debt collection agencies. You will cease being harassed about your debts and can now more easily take long-term measures to pay them back. Debt collection agencies are forbidden from contacting you at all.
Since Chapter 7 bankruptcy is about eliminating unsecured debt, this prevents debtors from claiming or repossessing your properties such that it would leave you with unsustainable living conditions. Chapter 7 is fairly quick to discharge, absolving all debts within half a year.
However, not everyone qualifies for Chapter 7 bankruptcy. Businesses are better off with Chapter 11 bankruptcy, to be able to stay in business and adjust the term of repayment over a longer period without liquidation. Chapter 13 is similar to Chapter 11 bankruptcy, but for individuals.