When Is The Right Time to Declare Bankruptcy in Nevada?
Filing For Bankruptcy For Your Financial Benefit
Bankruptcy can be a scary proposition that brings up images of celebrity gossip and business giants. But how do you know when it’s time to declare bankruptcy? Sometimes, it can be the best option. But before you file, it’s crucial to assess your situation with the guidance of a Reno bankruptcy law office so you can be aware of your alternatives and options and discover the right timing for you.
Assessing Your Financial Situation
Consider these questions to help assess your financial danger zone:
- Are you only making minimum payments on your credit cards?
- Are debt collectors calling you?
- Do you feel afraid, overwhelmed, or out of control when you think about your finances?
- Do you use credit cards to pay for basic necessities?
- Have you thought about debt consolidation?
- Are you unsure how many debts you actually have?
If you answered yes to two or more of these questions, it’s time to consider your financial situation more carefully.
Determine where you are financially by writing a list of all of your tangible assets and what they are worth. This includes retirement funds, stocks, bonds, your vehicle, college savings accounts, real estate, and cash on hand. Next, you’ll need to add up your bills, debts, loans, and credit statements.
If the value of your assets is less than the amount of debt that you owe, and you are struggling to make payments, declaring Reno Chapter 7 bankruptcy may be one way out of a difficult situation. However, declaring bankruptcy should not be done casually, as it can have long-lasting consequences.
How Do I Declare Bankruptcy?
You can file bankruptcy in one of two ways. Most commonly, a person files bankruptcy voluntarily, but creditors can also ask a court to order a person bankrupt. If you choose to file voluntarily, you’ll discover that there are different ways to file, each with their own advantages and disadvantages. It’s best to consult a Reno bankruptcy law office before making a decision so you can find the best solution for your circumstances.
Chapter 7 Bankruptcy In Nevada
Many people opt for a Chapter 7 bankruptcy. Some common reasons for choosing this type of bankruptcy include extended unemployment, significant medical debts, extremely overextended credit, and even marital problems. In this type of bankruptcy filing, your assets are taken and sold so that as much of your debt as possible is paid off. Then the proceeds from your assets are distributed to your creditors, such as banks, medical organizations, and credit card companies, to help pay off what you owe.
Within a few months of filing, you’ll receive a notice discharge that your debts are paid. Unfortunately, the bankruptcy will remain on your credit report for ten years, with negative impacts on your creditworthiness. However, a Reno Chapter 7 bankruptcy doesn’t mean your financial situation is ruined forever. Many people who file Chapter 7 have bought homes and made other significant financial gains after their filing. In many situations, Chapter 7 bankruptcy offers an inexpensive, fast way to get a fresh start. But if you own a business, home, real estate, or other assets you want to keep in your possession, Chapter 7 bankruptcy may not be the best option.
Chapter 13 Bankruptcy In Nevada
For people who have property they want to maintain, filing for a Reno Chapter 13 bankruptcy may be a better option. With this type of filing, you’ll develop an affordable repayment plan that lasts 3-5 years. If you make your payments on time as agreed, your remaining debts will be discharged at the end of the 3-5 year term. Although Chapter 13 bankruptcy is more expensive and has a longer court process, it can be advantageous to some people because you’ll maintain ownership of your assets and the bankruptcy will be off your record sooner. No matter which type of filing you choose, filing bankruptcy will stop debt collectors and creditors from contacting you.
Declaring Bankruptcy: Overwhelming But Sometimes Necessary
It can be hard to admit that you need help with your debts or that you are feeling overwhelmed with your financial situation. But instead of ignoring the phone and the pile of unpaid bills that aren’t going away, it’s best to face the situation head on with the guidance of a Reno bankruptcy lawyer who can help you sort through your options and plan your next steps. Although filing bankruptcy is not the best choice for everyone, it can give other people exactly what they need for a fresh financial start.
Consult With an Experienced Bankruptcy Attorney In Reno
If you’re considering bankruptcy, talk with the trusted and professional attorneys at Zero Down Bankruptcy Lawyers of Reno. Our friendly team is here to help you get a fresh start with your finances and get you on your way to debt free living. Trust us with your case and get fast relief from overwhelming debt! Call our office today to schedule your free case evaluation.
Zero Down Bankruptcy Lawyers Of Reno