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Bankruptcy

RATED AV® & SELECTED TO NEVADA SUPER LAWYERS®

It's the big “B” word that everyone tries to avoid: bankruptcy. According to data collected by the United States Courts, there were a total of 726 bankruptcy filings in the state of Nevada in January 2016 alone. This number includes 17 business filings and 709 non-business filings. So what exactly is bankruptcy and what does it mean for our clients? Bankruptcy is a way of creating a clean slate by clearing away dischargeable debt, while creating solutions for debt that make loan repayment manageable.

The attorneys at McDonald Law Office have handled hundreds of family law and bankruptcy cases in Henderson, NV, and our experience in both fields prepared us to tackle the most complex bankruptcy cases. We have the legal experience and knowledge to give our clients the best chance at starting fresh, creating innovative solutions tailored to meet their needs.

Call (702) 850-8004 to schedule a consultation with our firm today.

HOW TO KNOW YOU'RE READY TO FILE

When it comes to bankruptcy, prevention is key. There are strategies you should consider to help avoid filing for bankruptcy, which include cutting spending, avoiding credit card spending and loans, and seeking professional assistance from a financial counselor. If you are unable to avoid bankruptcy, the next things to understand are the options, process and consequences of filing for bankruptcy.

The Options 
If you have decided to file bankruptcy, you need to understand your options. First, credit counseling is a requirement, and you must complete it before filing bankruptcy. Second, there are five different types of bankruptcy that can be filed in the state of Nevada. Three of the most common and relevant are listed below: Chapter 7, Chapter 11, and Chapter 13.

CHAPTER 7 BANKRUPTCY

Liquidation bankruptcy allows clients to sell their assets in order to pay off debt, except for assets that are considered necessary for living. Nevada has specific exemptions that protect certain items from liquidation. For example, a client would still be entitled to a basic means of transportation. After as much debt as possible is paid off using a client's assets, their remaining debt is discharged.

Who: Individuals, partnerships, or corporations 
Why: No hope of repairing financial situation 
What: Liquidation of the debtor's assets occurs to pay off creditors

CHAPTER 11 BANKRUPTCY

Also known as a "reorganization bankruptcy," filing for Chapter 11 allows businesses and corporations to file for bankruptcy while protecting the assets of the individuals. However, in partnerships, each partner's personal assets may be required to pay off oustanding debt. Like a Chapter 13, a repayment plan is created in order to pay off loans over a short term period.

Who: Individuals, partnerships, or corporations 
Why: Attempt to rebuild financial situation 
What: The debtor reorganizes personal, financial, and business affairs and creates a plan to pay off creditors

CHAPTER 13 BANKRUPTCY

Known as the wage earner's plan, this is best for clients who have a steady and regular income. It involves consolidating your debt and creating a plan with your creditors to repay your loans within a predetermined period. The advantage of this type of bankruptcy is it makes repayment manageable, protecting clients from debt collectors while making steady and consistent payments to your lendors.

Who: Individual with regular income 
Why: Overcome with debt but can repay it within a reasonable amount of time 
What: Debtor creates a plan to use future income to pay creditors over a period of 3 or 5 years

Our team of legal professionals provides the best solutions for clients based on their individual situations and needs. Contact our office today to talk to an attorney about full details and information about filing bankruptcy.

Need to talk? We really listen.

If you have questions about your case, call us at (702) 381-6590. We would be happy to answer any questions and discuss your legal options at this time. Contact Us Today

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