Debt can creep up quickly and take over the finances and life of any person. If financial hardships have left you with unmanageable debt and a seemingly hopeless situation, filing for bankruptcy may provide the relief you need.
Although filing for bankruptcy offers the opportunity for a fresh start, it can take a toll on your credit, your finances, your possessions, and your emotions. Bankruptcy is a serious action that will put your through a detailed legal process, but it doesn’t have to be as overwhelming as the mountain of debt before you. Educating yourself on what bankruptcy is will help you to survive bankruptcy and leave you ready for a second chance.
What Exactly Is Bankruptcy?
Bankruptcy is a legal process through which an individual or a business is able to find relief from debt that they are not able to pay or keep up with. Depending on the type of bankruptcy you qualify for, it provides a solution for anyone struggling with an unmanageable amount of debt. When you file for bankruptcy, the court will thoroughly evaluate your financial situation and provide you the opportunity to take care of your debt by selling possessions or entering into a repayment plan. At the end of your case, some of your remaining non-secured debts will be discharged leaving you with the opportunity to rebuild your financial standing.
When Should You File For Bankruptcy?
Filing for bankruptcy is not an easy, quick fix. It offers relief from debt, however it does come at a cost. Bankruptcy can have a negative impact on your credit score and linger on your credit report for 7-10 years and it could even cause you to lose personal possessions. Despite the cost, bankruptcy provides an effective solution for unsustainable amounts of debt.
You should consider filing for bankruptcy if you…
- Are unable to pay your debt or bills
- Cannot make progress on credit card balances
- Behind on any bills or expenses
- Facing foreclosure or a repossession
- Have unmanageable medical bills
- Are being sued for debts
- Are being harassed by debt collectors
What Types Of Bankruptcy Are There?
There are several types of bankruptcy providing unique options for either individuals or businesses. Businesses most commonly file for Chapter 11, while individuals typically file for either Chapter 7 or Chapter 13.
Under Chapter 7 bankruptcy, many, if not most, of your non-exempt possessions are liquidated (or sold) to pay back your debt. After the court has satisfied a sufficient amount of your debt with your property, some of the remaining debt is dismissed.
Under Chapter 13 bankruptcy, you will enter into a court-approved repayment plan that requires you to make an overall monthly payment that is then distributed to your creditors. Repayment plans last between 3 to 5 years, but some remaining debt is also discharged at the end.
What Happens To Your Credit During And After Bankruptcy?
After you file for bankruptcy, regardless of the chapter, you will experience a negative impact on your credit score and it will appear on your credit report for 7 to 10 years. You will likely find it difficult to get approval for any new loans or lines of credit for a few years, however this can be extremely beneficial as you work to strengthen your finances.
Despite the negative impact, you can begin to rebuild your credit and restore your finances by making smart decisions. Do your best to avoid any actions that will add additional negative items to your credit report and be careful to make all payments on time.
Should You Hire An Attorney?
Bankruptcy is a very detailed and complex process that is best handled by the expertise of a bankruptcy attorney who understands the intricacies of each type of bankruptcy along with successful experience with the bankruptcy court of your state. At Fair Fee Legal Services in Las Vegas, we understand the overwhelming process of bankruptcy and impact it can make on a person’s life or their business. If you’ve reached the point where you know you need help, reach out to our legal team at Fair Fee Legal Services today. With just a call, text, or email, you can start the process for the best Las Vegas bankruptcy filing and take the first step towards a debt free, carefree life!
Fair Fee Legal Services
8665 South Eastern Avenue, Suite 101
Las Vegas, Nevada 89123