If you find yourself in a financially distressed position, Chapter 13 bankruptcy protection might be a really good option for you. In simplified terms, Chapter 13 bankruptcy provides filing parties with access to no-interest debt repayment programs that can help them get back on a sustainable path. The best part is that a big part of the debt can be discharged and never paid.
Most often, these repayment plans last between 36 months and 60 months. They can be crafted to meet your individual financial needs. Indeed, these plans can help you restructure debts into payments you can afford. If you currently live in Clark County or any of the surrounding areas in southern Nevada and are considering Chapter 13 bankruptcy, you need to speak to an experienced Las Vegas bankruptcy lawyer as soon as possible.
The Top Four Benefits of Chapter 13 Bankruptcy Protection
Avoiding Foreclosure and Repossession: First and foremost, Chapter 13 bankruptcy protection can be used as a tool to help some borrowers protect their homes against foreclosure or their cars against repossession. Whether a foreclosure or repossession is impending or has already been initiated, Chapter 13 may be able to put a halt to the proceedings, which can give you a chance to fix the loan or mortgage delinquency.
- Sustainable Payments: The goal of Chapter 13 is to get your payments extended or restructured so your monthly obligation is reduced to an amount that is affordable to you. Then, you can start building momentum.
- Consolidation: You may currently owe debt payments to many different companies. Further, these payments may be due at many different times during the month. For many people, this situation is overwhelming and confusing. Generally, through Chapter 13, you will be able to roll many of these debt obligations into a single consolidated payment. The best part is that this is a bankruptcy. If you make the scheduled payments, the rest of the debt is discharged. You never have to pay it, ever.
- Credit Protection: Finally, when compared with other options, Chapter 13 provides some protection for your credit rating. This is not to say that having a Chapter 13 bankruptcy on your record is a good thing; certainly, it is not. However, it will do less damage than will many other options, such as filing for Chapter 7 protection or going through a foreclosure.
Chapter 7 vs. Chapter 13
For some individuals, Chapter 7 bankruptcy is a better option than Chapter 13 is. Chapter 7 generally allows for the liquidation and discharge of certain debts. However, Chapter 7 is not available to all borrowers. Indeed, if your current income is above that of the median earnings in Nevada, then you may not be eligible to file for Chapter 7 because of the “means test.” Even if your mean income is above the median income for the state of Nevada, an experienced Las Vegas bankruptcy attorney may be able to help you through the means test. Before you file for either type of bankruptcy, you should consult with an experienced Las Vegas attorney who will review your case and determine which type of filing makes more sense for you and your family.
Get Legal Help Today
Financially distressed consumers need legal protection. If you are looking for a way to fix your serious debt problems, please get in touch with our Las Vegas Chapter 13 attorneys today. We will comprehensively evaluate your financial circumstances and determine exactly what needs to be done to help you get back on a sustainable financial path.