Filing for bankruptcy in Nevada may be an option if you have more debt than you are able to pay. If this describes your situation, the first and most important step is to consult with a Nevada bankruptcy attorney. It’s also important to have an understand of Nevada bankruptcy laws. Here are six things you need to know when considering this process.
Know What Bankruptcy Can’t Do
While bankruptcy can eliminate some of your debts, you’ll still be liable for others under bankruptcy law. Secured creditors, such as for your mortgage and car loan, can repossess the property unless you continue to make payments, sometimes under a revised payment agreement. You also can’t discharge child support, alimony, certain other divorce debts, some student loans, court restitution orders, criminal fines, and certain taxes. And if you have cosigners, they are still responsible for your debt if you file bankruptcy.
Familiarize Yourself with the Types of Bankruptcy
Eligibility for each type depends on specific factors. For individuals, Chapter 7 debt is for those under a certain income threshold and completely discharges your debts, while Chapter 13 is for those over the income threshold and allows for reorganization of some debts and discharge of others. Chapter 11 is reserved for businesses and those with a very large amount of debt, while Chapter 14 is specifically for family farmers. Your bankruptcy attorney Nevada can advise on your individual situation.
Understand Credit Counseling Requirements
Nevada bankruptcy laws require that you undergo credit counseling within six months before filing bankruptcy. After filing and before your case can be discharged, you also must successfully complete a financial management course.
Be Prepared to Pay a Fee
In addition to paying your attorney’s fee, you’ll also be responsible for paying court fees when you file bankruptcy. The current fee is $335 for Chapter 7 bankruptcy and $310 for Chapter 13.
Know Where to File Bankruptcy
In Nevada, the bankruptcy court has both a Northern Division and a Southern Division. Those who live in Clark, Esmeralda, Lincoln, or Nye County must file in the Southern Division court in Las Vegas, while residents of other counties file in the Northern Division.
Prepare Your Paperwork
Getting your paperwork in order is key to a successful bankruptcy filing. You’ll need to gather proof of all your income, all your debts, as well as any other information the court requests in order to determine whether you are eligible for bankruptcy under your state’s bankruptcy law.