How to File for Bankruptcy in Nevada

Nevada has the highest rate of per capita bankruptcy filings in the country.  In addition, they are 6th in the nation in unemployment, making it as important as anywhere in the country that residents be informed and equipped to make wise decisions about their financial future.  For those contemplating bankruptcy, there are many issues to consider, and consulting a bankruptcy attorney early in the process to provide the insight many debtors need to choose the right option.

Finding a Bankruptcy Attorney

There are many today claiming to be skilled and knowledgeable bankruptcy attorneys, especially in a state that has a high rate of such filings.  However, it is important to investigate those claims and be sure that the one chosen to represent a debtor has the ability to help them find the most benefits and suffer the fewest consequences in this difficult process.  The internet is a valuable tool, providing the debtor the opportunity to check an attorney’s track record and public record, access respected legal sites for information and recommendations, and even consult the state bar association for their recommendations.  In addition, the potential client should conduct their own interviews and obtain a written quote of all services and fees before they make their choice.

Bankruptcy Options

Of the six types of bankruptcy available to filers, the most common choice throughout the country is Chapter 7.  This type of bankruptcy is often known as liquidation bankruptcy, because the bankruptcy trustee may liquidate any property the filer owns to pay creditors before discharging, or erasing, the remainder of unsecured debt.  This is a good option for “no asset” filers who have no non-exempt assets to lose.

The other common form of bankruptcy for individuals in Chapter 13.  This type is appropriate for those with some monthly disposable income.  It allows the debtor to retain their property, but requires them to pay most of their debts in a reorganized repayment plan.  Their payments may be smaller, and at the end of the three- to five-year plan, any remaining unsecured debt may be discharged, as well.

Nevada Exemptions

One of the important forms of protection available to Chapter 7 filers is property exemption under state and federal laws.  These statutes allow the filer to claim certain types of property as exempt from liquidation.  In Nevada, only state statutes are available, but they include:

Filing the Petition

Once all these options are considered and the type of bankruptcy petition is determined, but before they can file, the debtor must attend credit counselling.  Once completed, the debtor and their attorney file their petition with the bankruptcy court.  At that point, the bankruptcy trustee takes charge of the case:

• Determining if the filer is qualified to file.  If they are not qualified for Chapter 7, the trustee may have them convert to Chapter 13
• Holding a 341 meeting, named after the section of the bankruptcy code, to question the debtor about their assets and claims, if necessary, under oath and to allow any creditors who attend to question the filer
• Once the petition is granted, the filer must complete a court-approved debt education course before any debts can be discharged.
• Debts can be discharged for the Chapter 7 filer at this point; for a Chapter 13 filer, some debts may be discharged if not paid in full at the end of the repayment plan.