Chapter 7 bankruptcy, a liquidation proceeding designed to give you a fresh start, can help Las Vegas residents in a number of ways. Typically with Las Vegas bankruptcy, you’re choosing between Chapter 7 bankruptcy and Chapter 13 bankruptcy. You may have fallen behind on mortgage payments and risk foreclosure. You may have lost your job and benefits, and have big bills coming in you simply cannot afford on unemployment. Or you may have just made a mistake in your finances.
The answer to Las Vegas residents interested in a second chance is using Chapter 7 bankruptcy to help.
How can you save your home from foreclosure or cancel certain debts? Chapter 7 bankruptcy is a legal way to 1) buy yourself time and 2) save your residence. Let’s go over these in detail.
Save Money with Chapter 7 bankruptcy in Las Vegas
Quite often you can live in your home for free after filing Chapter 7 bankruptcy. It may be only a few months, but often that’s all you need to find some other residence. Also, you can technically cancel some of your mortgage debt, including the mortgage, 2nd mortgage, and even third mortgage. You can also cancel home equity loans.
There are many other ways to save money. You can negotiate with debtors if you plan to file bankruptcy. They might be willing to lower bills. In some cases, you might actually be able to handle your financial problems without losing nonexempt assets. Also, you may consider filing for Chapter 13 bankruptcy, as that’s the best way to save your home from foreclosure.
The bad news is, because of certain documentation filed with each home purchase, Chapter 7 bankruptcy does not save your home from foreclosure. If you file Chapter 7 bankruptcy in Las Vegas, your home is in danger. If you file Chapter 13 bankruptcy in Las Vegas, you have better odds of saving your home and canceling debts, but that costs more.
Chapter 7 bankruptcy has changed in recent years, as many are no longer able to file it. Many are now filing Chapter 13 bankruptcy, which in essence gives you several months to save home and other property. Check with professional Chapter 7 bankruptcy lawyers to see if you’re eligible.
Major Advantages of Chapter 7 Bankruptcy in Las Vegas
We’ve noted some advantages and disadvantages of Chapter 7 bankruptcy, and pointed out problems with being eligible. It’s still clear Chapter 7 bankruptcy is the most promising route if you simply cannot catch up with bills. It takes a matter of months and you can cancel most of your debts. If you’re low income and your assets are of low value, you can expect to keep most of your possessions and be free of many debts.
The best news, however, may that by hiring a Las Vegas professional bankruptcy you can stop most if not all creditor harassment.