Types of Bankruptcy
There is no one situation that determines if bankruptcy is the right choice for your circumstances. Everyone’s ability to handle debt and financial difficulties is different. Consulting an experienced bankruptcy attorney can provide needed legal advice to determine the right solution.
Darby Law Practice, Ltd provides clients with valuable bankruptcy advice in Reno and throughout northern Nevada. Bearing in mind that the Bankruptcy Code is federal law with modifications in many states, we provide bankruptcy services for:
- Chapter 7
- Chapter 13
- Chapter 11
Reno Chapter 7 bankruptcy
Chapter 7 bankruptcy enables consumers to discharge unsecured debts, such as credit card debt. Any non-exempt assets (luxury items, second homes, for example) are liquidated to pay some or all of your debts. Eligible debts not paid through asset liquidation are discharged or forgiven.
The benefits of a Chapter 7 include:
- Relief from unsecured debts
- Clean financial slate
- End of creditor harassment
The disadvantages of a Chapter 7 include:
- A mark on your credit standing for up to 10 years
- Non-dischargeable debts such as alimony, child support, and student loans
Reno Chapter 13 bankruptcy
A Chapter 13 enables consumers to repay their debts over a three or five year period. You must participate in credit counseling and your repayment plan must be approved by the court and your creditors. The advantages of a Chapter 13 include:
- Foreclosure avoidance
- Repossession avoidance
- Debt repayment management
The disadvantages to a Chapter 13 may include:
- Negative effect on credit standing
- Restriction on accumulation of new debt
Reno Chapter 11 bankruptcy
A Chapter 11 bankruptcy is for businesses to reorganize their debt so they can stay in business. A Chapter 11 may also help individuals with large debts that exceed the Chapter 13 eligibility. The advantages of Chapter 11 bankruptcy in include:
- Ability to remain in business
- Partial control over reorganization process
- Discharge of certain debts
The disadvantages of a Chapter 11 may include:
- Responsibility for attorney fees
- Strict oversight by the court
- High bankruptcy costs
- Possible asset liquidation
- Possible civil/legal penalties
Consult with Reno bankruptcy lawyers
Discussing your situation with an experienced Reno bankruptcy lawyer can provide needed legal advice to make a sound decision on how to proceed. Contact Darby Law Practice, Ltd online today to schedule a consultation. We cannot promise a specific outcome but can do everything possible to determine the right financial solution for you.
