Law

Considering bankruptcy? Check important details here!

Debts are often necessary, just like credit cards. However, when you have acquired more debts and credit card bills than you can ever pay off, life can come to a standstill. Let’s start by saying that bankruptcy is usually the last option for handling debts. If you meet an attorney for help with your bankruptcy case in Las Vegas, they will usually consider all other options, such as debt consolidation. Strangely, people often have weird ideas about bankruptcy. While some believe that bankruptcy is shameful, there are others who would consider this anytime, just to get rid of their debts. If you are considering bankruptcy in Nevada, here are some things worth knowing. 

Chapter 7 and Chapter 13 bankruptcy

There are two basic options for every individual – Chapter 7 and Chapter 13 bankruptcy. Chapter 7 bankruptcy can be completed in months and will discharge most of your debts. There is no repayment involved, but you may lose your non-exempt assets. In case of Chapter 13 bankruptcy, a repayment schedule will be decided, and you are required to pay scheduled payments over a period of two to five years. If you make the scheduled payments on time, you may be able to retain your home facing foreclosure. 

So, which one is better? There is no one answer for that. Talk to an attorney to know more on both Chapter 7 and Chapter 13 bankruptcy¸ and depending on your financial situation, you can expect to get advice. Attorneys would want their clients to make the most of their options, while saving or retaining assets to the best possible extent and discharging most debts. 

You can work on your credit score

It is important to note that bankruptcy will appear on your credit card for a long time, often as long as a decade. However, this isn’t the end of the road. You can work on your credit score, and bankruptcy doesn’t prevent you from owning a new home, car, or credit cards. However, there may be waiting time before you can apply. For instance, to apply for VA home loans, you need to wait for two years, while the wait time is four years for conforming mortgages. 

Other things to know

When you have filed for bankruptcy, your credits cannot contact, threaten or sue you to pay their debts. Also, there are certain debts that cannot be discharged through bankruptcy. Typically, debts related to tax and student loans cannot be forgiven through bankruptcy.

Contact an attorney to know more on bankruptcy in Nevada.