Bankruptcy
Schedule ConsultationLas Vegas Bankruptcy Attorney
What Is A Bankruptcy?
Is Bankruptcy Right For Me?
Through bankruptcy, although your debts are primarily discharged, you may choose to reaffirm certain secured debts. A secured debt is a debt that is secured by a specific asset of the debtor. Examples include a mortgage being secured by a house or an auto loan secured by a vehicle. In those situations, you can choose to discharge the debt and surrender the property, redeem the property, or you can choose to reaffirm the debt and keep the asset. Surrendering the asset and discharging the debt can be a desirable option when the debt on the property is more than the property is worth. Redeeming the property happens when a debtor pays for the asset in full. Reaffirming the debt means that the debtor enters into a reaffirmation agreement whereby the debtor agrees to keep the debt, so that it is not discharged, in order to keep the asset.
The bankruptcy court must approve a reaffirmation agreement. The court will ensure that the debtor can afford the debt, and that it will not be an undue burden on the debtor. In cases with automobiles, the Bankruptcy Judge will not reaffirm an auto loan if it would be too heavy of a burden on the debtor especially because there is a Nevada law that protects consumers if the vehicle was purchased after October 2011 and the debtor remains current on loan payments and maintains insurance on the vehicle.
Types Of Bankruptcy
Chapter 7 Bankruptcy
Chapter 13 Bankruptcy
Chapter 11 Bankruptcy
Which Option Is Best?
Businesses that are looking to shut down, but that have way more debts than assets, may choose to file a Chapter 7 so that the Trustee will take the assets of the business, liquidate them, and disperse them amongst the creditors based on the filed prrofs of claim.