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Hire bankruptcy attorney in Reno, Nevada to get rid of your overwhelming debts and creditors’ harassment

Bankruptcy provides financial relief to debt-ridden individuals in the form of restructured debt repayment plan, or liquidation of certain assets to help pay a portion of debt to creditors. Bankruptcy is a court-supervised process wherein one legally declares their inability to pay outstanding debts. The US Bankruptcy Code governs all bankruptcies in the country, wherein a federal judge oversees the court and makes all the important decisions. A court-appointed trustee will either have debts settled by selling off the debtor’s assets, or work out a new repayment plan for your creditors.  

When you hire bankruptcy attorney Reno in Nevada from trusted law firm, such as Recovery Law Group, you may be suggested two options for this – which are Chapter 7 or Chapter 13 bankruptcies, which are the most common forms of individual bankruptcies filed in the USA. Under Chapter 7 bankruptcy, you are required to sell your property which is not exempt. The list of exemptions varies from state-to-state but typically includes personal clothing, household furnishings, tools of trade, and a small automobile of certain value. However, in most cases of Chapter 7 filing, fliers have only exempt assets, so nothing gets liquidated.  

However, as you will be told when you hire bankruptcy attorney Reno, you will come to know that you will have to pass a Means Test, to ensure that you are not abusing bankruptcy system. To pass the test, your median income should be less than that that of your household size in your state. While most dischargeable debts will be wiped off under Chapter 7 bankruptcy when you hire bankruptcy attorney Reno, some fliers may volunteer to pay off one or more debts through a process called reaffirmation. In this process, the debtor agrees to pay all or a portion of the amount owed, and the creditors agree not to take the possession of the property as long as the debtor continues to pay.  

Paying your debts over three to five years’ time  

Chapter 13 bankruptcy allows you to restructure your debts, and pay them off over a period of three to five years under court supervision. Also known as the wage earner’s plan, you will be required to compile a list of all your creditors along with the amount of money you owe to each. With the aid of a court-appointed trustee, your hired bankruptcy attorney Reno will submit a plan on your behalf to repay your creditors within a period of three to five years. You will have to play an agreed upon sum of money each month, which will be distributed by the trustee to your creditors. At the end of the repayment period, any remaining debts, with certain exemptions, will be discharged by the court.  

To qualify for Chapter 13 bankruptcy, you must have a steady stream of income, and be current on your tax filing. It extends the amount of time you have to repay your debts, and also suspends pending foreclosure and payments of any other debts owed. You will be given relief while the court considers your plan, but it will not eliminate the debt. However, you will be provided with enough time to make regular mortgage payments and keep your house.    


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