Bankruptcy in Nevada
For many Nevada residents, mounting bills, job loss, or medical expenses can make it nearly impossible to stay financially afloat. When creditors keep calling and payments are past due, it’s easy to feel like there’s no way out.
Filing can stop wage garnishments, halt foreclosure proceedings, and eliminate qualifying debts. Whether you’re looking to erase debt under Chapter 7 or reorganize through Chapter 13, Nevada law offers protections.
Each type of bankruptcy has different rules, timelines, and requirements. Nevada also has its own set of exemptions that determine which assets you can protect.
We connect Nevada residents with knowledgeable bankruptcy attorneys who can help you make sense of your options and guide you every step of the way.
Types of Bankruptcy in Nevada
Bankruptcy is a legal tool that allows individuals and businesses to reset their finances when debt becomes too much to manage. In NV, you must show that a genuine financial hardship is preventing you from keeping up with your obligations to qualify.
While bankruptcy can eliminate many types of debt, it doesn’t wipe the slate entirely clean—obligations like child support, alimony, back taxes, and most student loans remain your responsibility.
If you’re struggling to stay current on payments, filing under Chapter 7, Chapter 11, or Chapter 13 may be an option. Each chapter serves a different purpose, and the right choice depends on factors like your income, the assets you want to keep, and your long-term financial goals. Speaking with a bankruptcy attorney can help you understand which path fits your situation.
In Nevada, bankruptcy cases are handled by the U.S. Bankruptcy Court for the District of Nevada. Filings are processed through court locations in Las Vegas and Reno, depending on where you live in the state.
Chapter 7 Bankruptcy
Chapter 7 bankruptcy offers a fresh start for those who can no longer keep up with mounting debt. It’s often a good fit for individuals who lack the income or resources to repay what they owe. That said, it’s not a decision to make lightly.
Before filing, take a close look at your income, monthly obligations, and long-term financial goals. A bankruptcy attorney in Nevada can walk you through the process and help determine if a liquidation plan fits your circumstances.
Most people who qualify for Chapter 7 have experienced job loss, a major life event, or other financial hardship that left them unable to meet their obligations. While the benefit is significant—discharge of most unsecured debt—you may have to give up certain assets, like your vehicle, home, or valuables.
To qualify for Chapter 7 bankruptcy in Nevada, you must first pass a means test, which compares your income to the state’s median. As of the most recent figures, the median annual income for a single filer in Nevada is approximately $63,983.
If your income is at or below that threshold, you likely meet the initial requirement. If it’s higher, the court will evaluate your allowable monthly expenses to determine whether you have enough disposable income to repay a portion of your debts. This process helps ensure that Chapter 7 relief is available to those who genuinely lack the financial ability to manage their obligations.
Chapter 11 Bankruptcy
Chapter 11 bankruptcy is a more intricate process than other forms of bankruptcy and is most often used by businesses or individuals with significant assets and complex financial obligations. Instead of wiping out debt or forcing liquidation, it allows filers to propose a reorganization plan that restructures how and when debts are repaid, typically over four to eighteen months.
Filing for Chapter 11 bankruptcy requires a detailed and transparent look at your entire financial situation. You’ll need to submit a comprehensive set of documents that outlines your assets, debts, income, expenses, and your plan for repaying creditors over time. This information helps the court and your creditors assess whether your proposed reorganization is realistic and legally sound.
Key documents include:
- Voluntary Petition for Individuals Filing for Bankruptcy (Form B101)
- Summary of Assets and Liabilities (Form B106)
- Schedules A/B through J (covering property, debt, income, and expenses)
- Statement of Financial Affairs (Form B107)
- Chapter 11 Statement of Current Monthly Income (Form B122B)
- Creditor Matrix (a complete list of all creditors and their contact info)
- Schedule of Executory Contracts and Unexpired Leases (Form B106G)
- Proposed Reorganization Plan and Disclosure Statement
Chapter 13 Bankruptcy
Chapter 13 bankruptcy—often called the wage earner’s plan—is designed for individuals with regular income who need time to get caught up on their debts. In NV, once you file, the court will appoint a trustee to review your financial situation, including your assets, liabilities, and monthly income.
From there, you’ll propose a repayment plan that stretches over three to five years, allowing you to reorganize what you owe without giving up everything you own. The structure of your plan will depend on how consistent your income is and which assets you’re aiming to keep. In some cases, completing the plan could also result in partial or full discharge of certain remaining debts.
Chapter 13 bankruptcy sets itself apart by focusing on repayment, not liquidation. Instead of selling off your assets to pay creditors—as in Chapter 7—you’ll propose a repayment plan that lets you catch up over time. That plan typically spans three to five years and is based on your income, living expenses, and the value of any property you’re trying to keep.
Unlike Chapter 11, which is often used by businesses or high-debt individuals and involves more complex negotiations, Chapter 13 is streamlined and designed for people with steady income who are behind on their bills. It gives you room to breathe without losing everything and helps prevent foreclosure or repossession.
The Bankruptcy Process in Nevada
Filing for bankruptcy is rarely anyone’s first choice, but if your financial situation is unlikely to improve within the next five years, it may be the most practical way to regain control. Bankruptcy can help reduce the long-term damage of unmanageable debt and give you a structured path toward recovery.
In Nevada, the first step is preparing a full overview of your financial life. You’ll need to gather documents that show your income, monthly expenses, outstanding debts, and any assets you own. The court uses this information to evaluate your case and determine your eligibility. If anything is missing or incomplete, your petition could be delayed—or denied entirely.
In Nevada, bankruptcy filers must use the state’s exemption laws, which are designed to protect certain property from being sold off during the process. These exemptions play a key role in determining what you can keep, so it’s essential to apply them correctly. Nevada’s laws are relatively generous compared to some states, making it possible to shield essential assets while working toward debt relief.
Nevada exemptions include:
- Homestead: Up to $605,000 in equity in your primary residence
- Motor vehicle: Up to $15,000 in equity for one vehicle
- Personal property: Reasonable household goods, clothing, and furnishings
- Tools of the trade: Up to $10,000 in professional tools or equipment
- Wages: Up to 75% of disposable weekly earnings
- Public benefits: Fully exempt, including Social Security, unemployment, and disability
- Retirement accounts: Most tax-qualified pensions and IRAs are fully protected
Work With an Experienced Nevada Lawyer
If you’re a Nevada resident struggling to stay ahead of mounting debt, bankruptcy may offer the relief you need to reset and rebuild. Whether you’re considering Chapter 7 to discharge unsecured debts or Chapter 13 to catch up through a manageable repayment plan, the right filing can stop collection actions and give you a clear path forward.
Nevada’s exemption laws provide strong protections, allowing you to keep essential property while working toward financial stability. But navigating the system can be complicated, and one misstep could delay your case or put your assets at risk.
Submit a request online or call us today at (866) 345-6784 to get in touch with an experienced lawyer in your area!
About the Author
Aaron is a professional legal writer with a B.S. in English Education from Southern Illinois University – Carbondale. He has written, published, and edited thousands of legal articles for RequestLegalHelp, which has connected over 5 million people to legal help in the United States.
With over five years of experience writing thousands of legal articles for law firms across the U.S. and Canada, Aaron specializes in covering federal, state, and city-level legal issues ranging from auto accidents to wrongful terminations.
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