Nevada Bankruptcy Laws
Nevada bankruptcy has similar bankruptcy laws and procedures to those of other states. Many of the Nevada bankruptcy laws and procedures within the state of Nevada are intended to help individuals and corporations through hard economic times and carry them to a good economic standing later down the road. Some NV bankruptcy laws within the state of Nevada are different from other states, like certain exemptions, but the majority of the laws reflect those of other states.
Before an individual or family files for NV bankruptcy, they must attend a credit counseling course 6 months prior to filing the claim. They must also take a debtor counseling course before a settlement is reached.
Nevada Bankruptcy : Personal and Corporate
Individuals and corporations can file for Nevada bankruptcy. A family or individual with a large accumulation of debt usually files for Chapter 7 or Chapter 13 bankruptcy, while a corporation usually files for Chapter 11 bankruptcy if they are in economic trouble. There are many exemptions within all forms of NV bankruptcy in the state of Nevada.
NV Bankruptcy Chapter 7
If a family or individual wants to file for Chapter 7 bankruptcy, they must first pass a “means test.” The test examines the average income, and in order to pass the test, a person’s income must fall below the state average. The average income in Nevada is $43,146. If a person with a family wants to file for Chapter 7, the average income increases for every head in the house.
Chapter 7 bankruptcy is often referred to as liquidation because the person or family is usually left with a clean slate after a creditor retrieves the required assets. The only problem with Chapter 7 bankruptcy is that a creditor can collect many valuable assets in order to pay for your debt, and in some cases, your house is in danger in a Chapter 7. Some exemptions in the state of Nevada include:
• Up to $550,000 in real property
• Up to $12,000 in household goods
• A car less than $15,000 in value
• Up to $16,500 in personal injury compensation
• 75% of earned wages OR 50 times the minimum wage (whichever is greater)
NV Bankruptcy Chapter 11
If a business or corporation is facing economic troubles, they may file for Chapter 11 bankruptcy. This measure gives the company a “break” from economic trouble or debt problems and allows them to reorganize their finances. The owner of the company is often seen as the overseer of the restructuring process, and they often act in “good faith” with the creditor and court.
NV Bankruptcy Chapter 13
If you or your family has a steady income and is willing to make sacrifices in order to reduce debt, you can file for Chapter 13 bankruptcy. The family or person is required to make repayments over the next three to five years, and during this time, creditors are often not allowed to hassle you. You can usually avoid foreclosure on a property if you opt for Chapter 13.
Taxes
In a Chapter 7 bankruptcy, your tax returns may be considered a valuable asset and turned over to a creditor. In some cases, you can keep tax returns in a Chapter 13, but the wages usually go towards repayment of debt or living expenses.
Filing a Nevada Bankruptcy Claim
There are specific timetables you work with when filing for Nevada bankruptcy. There are also numerous documents, files, and fees that are associated with NV bankruptcy, so it’s always a good idea to contact a lawyer as soon as possible. A lawyer will know specific procedures and give you advice in handling certain situations with creditors.
