Many individuals would rather pile up a mountain of financial debt instead of declaring bankruptcy. A few would possibly even decide to hire a short sale attorney in Las Vegas in order to sell their properties well below what they’re worth just to dig their way out of debts. What they usually fail to remember is declaring bankruptcy has its own perks, especially when you’re working with a good bankruptcy attorney in Las Vegas.
Different types of Bankruptcy
The Bankruptcy Code, or Title 11 of the United States Code, controls bankruptcy in the U.S.. This code, enacted in 1978, features a collection of rules and regulations for people, corporations or agencies that no longer have the money to repay their outstanding debts. The Bankruptcy Code discusses six types of bankruptcy:
- Basic or straight bankruptcy: The simplest type of bankruptcy individuals or organizations can file for.
- Municipal bankruptcy: A form of bankruptcy which helps towns or neighborhoods restructure outstanding debts.
- Corporate bankruptcy: An organization filing for this sort of bankruptcy are authorized legally to reorganize their corporate structure based on a financial debt repayment schedule, but still retain management of their business operations as a “debtor in possession”.
- Rehabilitation for family fishermen or farmers: This bankruptcy type may help fishermen or farmers formulate plans to settle their outstanding debts. The U.S. authorities introduced it as an urgent reaction to farming credit issues in the 1980′s.
- Wage earner bankruptcy: Asking a bankruptcy attorney in Las Vegas to help you to file for this sort of bankruptcy lets you make plans to settle all or part of your debts. It is a lot like rehabilitation for fishermen or farmers, just with lower financial debt ceilings and fewer advantageous exemptions.
- Bankruptcy for supplementary and other international cases: This bankruptcy enables the U.S. courts to work with international courts in taking care of cross-border or foreign incidents of bankruptcy.
The most widespread kinds of bankruptcy an individual may file are basic bankruptcy or wage earner bankruptcy.
Reasons to File for Bankruptcy
A short sale attorney in Las Vegas can tell you that sometimes it might be safer to sell off your dead-end property at a lower price than hold on to it and not get anything out of it. Likewise, any bankruptcy attorney in Las Vegas will say the main reason you ought to file for bankruptcy is so you could have a fresh financial start. Bankruptcy allows you to formulate plans to settle all of your outstanding debts in an organized way, and may enable you to safeguard many of your properties and assets. It also helps prevent your financial obligations from piling up and getting out of control.
Filing for bankruptcy safeguards you against debt collectors harrassing you regarding your outstanding debts. Under the coverage of basic or wage earner bankruptcy, the court will help you plan and process your repayments. When all of your outstanding debts are paid off, or you have paid off the total amount you and your creditor agreed to during the planning process, the court grants you a discharge to liberate you from bankruptcy.
The Aftermath of Bankruptcy
Bankruptcy is not always bad. Taking care of your bankruptcy case properly with the help of a talented lawyer may get you out of your financial slump without any leftover outstanding debts, a fresh financial record, and all of your properties intact. Sometimes you might end up having your bankruptcy on your financial data, or with some property loss, but that seems a lot better than having to break up your business completely or getting a short sale attorney in Las Vegas to sell what little remains of your property.
Jorja Turnball is a legal assistant for a <a href=”http://www.okanolaw.com/”>bankruptcy attorney Las Vegas</a>, and works jointly with a<a href=”http://www.okanolaw.com/”>short sale attorney Las Vegas</a>.