Bankruptcy in Nevada is a legal procedure through which some of the debts of an individual or a business are discharged (excused). You should not view bankruptcy as an opportunity to eliminate your debts just because you don't feel like paying them - it can be a long and difficult process. Bankruptcy is designed to be a last resort to prevent complete financial ruin, while allowing creditors to collect at least some of their debts in an orderly fashion. Filing for bankruptcy can have major negative effects on one's credit score, which will make it more difficult to get loans in the future.
Accordingly, if you are considering bankruptcy as an option, you need to thoroughly examine the costs and benefits. A good Nevada bankruptcy Attorney can advise you as to the pros and cons of bankruptcy, and give his or her expert opinion about whether or not bankruptcy is a good option, based on the facts of your distinct case.
Types of Bankruptcy in Nevada
Bankruptcy is governed by federal law, so the procedures in filing for bankruptcy in Nevada will be the same as anywhere else in the United States. There are 2 basic types of bankruptcy that consumers typically use: Chapter 7, and Chapter 13, owing their names to where they are found in the U.S. Bankruptcy Code. Additionally, there is a form of bankruptcy normally used by businesses called Chapter 11. Chapter 11 is available to individuals, but it is rarely the best option for them.
In Nevada, Chapter 7 bankruptcy is referred to as "liquidation." The court will conduct an accounting of all of the debtor's assets, and determine which ones should be sold to help pay off the debts. Many classes of property, such as homes and cars, are exempt from this requirement, and therefore don't have to be sold. Once all of the eligible property is sold off, and the proceeds given to the creditors, the rest of the debt is discharged. Under Chapter 13 bankruptcy, debt is normally not discharged; instead, it is reorganized. The court will craft a long-term payment plan that allows the debtor to pay off his or her debts in single payments, over time. This usually gives the debtor some breathing room that would not exist if all of his or her debts became due and payable at once.
Normally, Chapter 11 bankruptcy is used by businesses as opposed to individuals. Much like Chapter 13, Chapter 11 involves the reorganization, as opposed to discharge, of a debtor's obligations. However, it is up the to the debtor to come up with a repayment plan, and once this happens, the plan is submitted to the participating creditors, who must approve it by majority vote.
How Can a Nevada Bankruptcy Lawyer Help?
Filing for bankruptcy is a very big decision, fraught with risks. However, in some cases, the benefits might outweigh the costs. Because of this, it is important to seek the advice of a Nevada bankruptcy Attorney, who can advise you of the likely consequences of filing, and whether or not doing so is likely to benefit you.
Interesting Facts About Nevada
The state of Nevada is located in the southwestern region of the United States. The name "Nevada" means "snow-capped mountain range", a reference to the Sierra Nevada mountain range. However, much of the state arid desert land. Nevada received much of its initial growth through the silver mining industry, earning it the nickname of "The Silver State".
Legal claims in Nevada are processed at various levels depending on the type of dispute involved. Nevada maintains a system of Municipal Courts, Justice Courts, District Courts, and a Supreme Court at the highest level. Nevada does not operate a separate system of intermediate appeals courts. Nevada's court system is famous for a whole host of famous cases cited by legal historians, including: "The Posse" case (Smith v. State); "The Gambling on Trial" case (Anderson v. McGill Club); and "The Last Stage Robbery" case (State v. Kuhl).
Nevada's growth can also be attributed to its distinct body of laws, which have attracted many people and organizations to settle in the state. Some of Nevada's laws are incomparable to those of other states. Most notable are Nevada's laws governing divorce, prostitution, smoking, and corporate tax advantages. Nevada has some of the most liberal alcohol laws on the one hand, in contrast with some the country's strictest drug-enforcement laws.
Lawyers in Nevada provide clients with guidance and representation through the state's legal system. Nevada attorneys are often licensed in multiple states, since the state is a center of much inter-jurisdictional activities. Experienced Nevada lawyers are available to provide high-quality legal services.