How to File Bankruptcy in Nevada: The Fundamentals.
The Nevada bankruptcy process is governed by federal law, so the fundamentals of filing for bankruptcy are no different from other states. However, you need to be familiar with Nevada’s state exemption legislation.
How to File Bankruptcy in Nevada for Free
A bankruptcy lawyer is not required to file a Chapter 7 bankruptcy lawsuit. In addition, the Nevada Bankruptcy Court may waive your filing cost if your income is less than 150 percent of the federal poverty level. This article will teach you how to handle the bankruptcy process in Nevada on your own.
How Bankruptcy Works in Nevada
In most ways, declaring bankruptcy in Nevada is similar to declaring bankruptcy in another state. The bankruptcy process is governed by federal law rather than Nevada state law, and it works by dissolving contracts between you and your creditors, allowing you to start over. However, Nevada’s laws play a big role as well. They select which assets you are allowed to keep in your bankruptcy case. You’ll also need to know some other filing details, which we’ll go over following the basics.
In qualifying for bankruptcy in Nevada, you’ll meet the initial condition if you’ve never filed for bankruptcy. Otherwise, see if enough time has gone since your last filing to allow you to refile. The amount of time you have to wait depends on the chapter you’ve already filed and the chapter you’re planning to file. Find out more about multiple bankruptcies.
You’ll also need to meet certain chapter requirements.
Qualifying for Chapter 13
To qualify for Chapter 13 can be a costly proposition because the additional advantages come at a high cost, and many individuals cannot afford the monthly payment. To be eligible, you must pay the greater of:
- your priority nondischargeable debt
- the value of nonexempt property, or
- your disposable income.
Nevada Bankruptcy Means Test
Since it would be unethical to allow anybody to file for Chapter 7 bankruptcy without consideration for their real capacity to repay their obligations, anyone who intends to do so must first pass the Nevada bankruptcy means test. This test begins by comparing your monthly salary to the median household income for a family of your size.
The means test determines whether enabling you to file Chapter 7 would be a misuse of the bankruptcy process if your income exceeds the income restrictions. It demonstrates to the court that you do not have enough monthly income to qualify for a Chapter 13 bankruptcy repayment plan.
Nevada Bankruptcy Forms
Though most Chapter 7 bankruptcy forms are the same in all jurisdictions, there are particular Nevada bankruptcy forms that are unique to the Silver State. They are the Creditor Matrix and the Creditor Matrix Verification. Both are available for download on the Nevada Bankruptcy Court’s website.
District of Nevada Requirements
Everyone who files for bankruptcy in the District of Nevada must submit an original bankruptcy petition as well as one copy to the bankruptcy court. If you want to pay your filing fee in installments, you must pay at least $80 within two days of filing your case.
Keeping Property When Filing Bankruptcy in Nevada
You will not lose everything if you declare bankruptcy. To safeguard your property, you will rely on your state’s bankruptcy exemption provisions. The major exemptions are listed below, but first, knowing the following will help you maximize what you’ll preserve in your case.
- Exempt and non-exempt property. You can maintain property that is exempt or protected by an exemption. If the property is not covered by a bankruptcy exemption, you will either lose it in Chapter 7 or have to pay for it in the Chapter 13 repayment plan.
- Choosing state or federal exemptions. In contrast to several other states, you cannot pick between the state exemption list and the federal bankruptcy exemption list. You must take advantage of Nevada’s exemptions. You can, however, employ the federal nonbankruptcy exemptions.
- Doubling exemptions. If both spouses own the property and file jointly, the exemption amount can be doubled.
- COVID-19 recovery rebate exemption. With the federal recovery rebate exemption, you may be able to safeguard stimulus payments, tax credits, and child credits in bankruptcy.
- Retirement accounts all filers can protect. You can maintain up to $1,362,800 in tax-free retirement accounts, including 401(k)s, 403(b)s, profit-sharing and money-purchase plans, SEP and SIMPLE IRAs, defined benefit plans, and standard and Roth IRAs.
After Filing for Bankruptcy in Nevada
Your creditors will cease pestering you soon after you file for bankruptcy. It takes a few days because the court mails notice to your creditors of the “automatic stay” order, which stops most creditors from continuing to demand payment from you. What will happen next is as follows:
- You will be required to turn up financial documentation that prove the assertions in your bankruptcy application.
- You’ll present in the 341 meeting with creditors, which is required of all filers.
- You’ll finish a debtor education course and turn in your completion certificate.
All of these things must occur before you can receive a Chapter 7 bankruptcy discharge. Filers in Chapter 13 will also be required to attend a repayment plan confirmation hearing and execute a three- to five-year payment plan.
Filing Bankruptcy Alone vs. Filing with an Attorney
The law does not require you to engage a lawyer to proclaim relief. As a pro se debtor, a person may represent himself or herself in court. Simply contact your local bankruptcy court and acquire all forms and criteria straight from them. Filing on your own is a difficult process.
Filing Bankruptcy without an Attorney
A simple Chapter 7 Bankruptcy with few debtors or assets may be simple to handle on your own.
A simple bankruptcy that does not need the services of an attorney may look like this:
- your salary is lower than the state median;
- you don’t own anything;
- your debts will be regarded as dischargeable.
Working with an Attorney
Working with a bankruptcy lawyer is typically in one’s best interests most of the time. A bankruptcy attorney is meant to represent you, not the interests of your creditors.
An attorney is also well-versed in exemption legislation. Furthermore, they can devise innovative tactics to preserve your assets through reasonable payback plans that are fair to all parties concerned.
While you may be able to fight and handle a bankruptcy on your own, having an attorney tends to make things a lot simpler in an already stressful situation, especially when so much is at risk.
Final Thoughts and Considerations on Filing for Bankruptcy In Nevada
As you can see, there is a lot of information related to filing for bankruptcy and then effectively departing it uninjured or satisfied. Only a professional bankruptcy attorney can help you through this difficult procedure, especially in complex instances. Make certain that you hire someone you respect and trust.
Freedom Law Firm is here to help.
Bankruptcy is often the last but necessary resort. It is a delicate and complex proceeding, and you want someone with plenty of experience to consult with, guide you through the process and help you determine the scope of the discharge.
In many cases, unless a party in interest files a complaint objecting to the discharge, the bankruptcy court may issue a discharge order relatively early in the case – generally, 60 to 90 days after the date first set for the meeting of creditors.
If you would like to find out whether bankruptcy is the right option for you, please request a call-back by submitting a short online form. All initial consultations are FREE and confidential.
In many cases, unless a party in interest files a complaint objecting to the discharge, the bankruptcy court may issue a discharge order relatively early in the case – generally, 60 to 90 days after the date first set for the meeting of creditors.If you would like to find out whether bankruptcy is the right option for you, please request a call-back by submitting a short online form. All initial consultations are free and confidential.