Bankruptcy Options
Chapter 7: Liquidation
The majority of bankruptcies filed are Chapter 7. The most appealing aspects of a Chapter 7 are that it eliminates all of your consumer debt and gives you a fresh start. Importantly, this means that you are now in a position to start your financial life without the bad debt that has been causing you nightmares. In addition, it is also the quickest bankruptcy to go through, the entire process is generally completed within three to six months.
We will advise you on the specific classes of debt that can be covered by Chapter 7. Your legal counsel will help you determine if this Chapter is appropriate for your needs.
Chapter 13: Restructuring
Chapter 13 restructures the debtor’s finances, it is an opportunity to correct your personal monetary resources. Most people in financial hardship pay their bills first then live their lives with what funds are remaining. For those individuals, a Chapter 13 allows them the opportunity to pay for their necessities and bills associated with their monthly needs prior to addressing their debts.
In today’s economic environment, the Chapter 13 has served as a way for home owners to alleviate some of their mortgage debt and even car loans. This Chapter was historically used by consumers with an income that makes them ineligible for a Chapter 7. For a thorough understanding of the effects of a Chapter 13 on you and whether it would benefit you personally, contact our offices for a consultation.
Chapter 11: Real Estate Investors
This is the Secret Banks Don’t Want You to Know About
Chapter 11 has traditionally been the chapter for corporate bankruptcies. See General Motors and Chrysler. After the housing bubble burst, Chapter 11 became an attractive option for real estate investors. In a Chapter 11 you have the power to reduce your properties’ mortgage loans to their current value. That is, you can eliminate the debt that you owe above your rental property’s current worth. For an investor, this means that you can start making a profit on your monthly balance sheets.
If this applies to you, contact us for a consultation so that we go over your specific circumstances and the best option available to you.
Foreclosure Mediation:
Nevada’s AB 149 provides mandatory mediation for homeowner facing foreclosure.
If you are facing foreclosure, we can assist you in dealing with the bank. Starting July 1, 2009, a homeowner in Nevada who has received a notice of foreclosure can request mandatory mediation with its mortgage lender in an effort to negotiate a loan modification. This new option for homeowners in Nevada is a result of an amendment to NRS 107, also often cited as Assembly Bill 149 ('AB 149').
It is important that you begin working with the bank as soon as possible. If you believe you are at risk of defaulting on your mortgage or have already missed payments, you may have options to save your home and avoid a foreclosure.
Short Sale Assistance:
In brief, a Short Sale occurs when a property is sold for less than the amount owed to the mortgage holder (the ''Lender'), the process cannot be completed without the Lender’s consent. A short sale has many benefits for you, including assisting in protecting your credit, minimizing your financial losses, and the additional benefit of avoiding a bankruptcy.
The short-sale process can be complicated and lengthy, therefore, it is important to retain legal counsel familiar with the short sale process to effectively advise you.
Debt Resolution:
For individuals with debt, but that want to avoid bankruptcy.
Debt resolution provides the means by which to address your credit card obligations in an environment where you are not at the mercy of your creditors. In particular, this program is popular with our clients that want to avoid bankruptcy. Our program has resulted in huge savings for clients allowing them to move forward with a clean financial slate.
Our debt resolution program is an efficient and cost effective method of addressing your debt issues. Contact us for a consultation to discuss which program might work best for you.
More questions? Contact us for a free consultation.
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