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Las Vegas Divorce Attorney > Blog > Bankruptcy Law > What is the Process of Filing for Chapter 7 Bankruptcy in Nevada?

What is the Process of Filing for Chapter 7 Bankruptcy in Nevada?

petition to file for bankruptcy

When it comes to bankruptcy, Nevada’s laws are quite different from the rest of the country. While many believe that it is similar in each state and just involves filling out a series of forms, the truth is that there are specific laws set in place in order to protect those who face this unfortunate circumstance, which are unique to where you reside. There are a number of factors that come into play including your home, real estate investments, cars, other personal property, and retirement accounts. Furthermore, there are bankruptcy exemptions specific to Nevada which we will examine. First, let’s take a look at the main type of bankruptcy sought out by individuals who need to eliminate their debt without the the burden of paying it back.

Chapter 7 Bankruptcy in Nevada

Chapter 7 is what most typically think of when they hear the word bankruptcy. It involves a fresh start where all of your assets are liquidated and distributed to creditors in order to pay off your debts. There are specific debts that are unable to be discharged including alimony, child support, debts resulting from fraud, student loans, and certain taxes. This type of bankruptcy is generally filed by individuals who have large credit card debt and few assets. Furthermore, Chapter 7 bankruptcy allows the provision for filers to keep specific secured debts ranging from your car to your furniture as long as you sign a reaffirmation agreement which states that the debt cannot be filed in bankruptcy court again for a period of eight years. In this instance, the reaffirmed debt must be paid current and future payments must be made on time.

In terms of exemptions in the state of Nevada, properties that fall into specific categories are allowed to be exempt from bankruptcy if it is within limits. Furthermore, if property is secured such as a car or home and payments are current, an individual has the choice to keep the property as long as they continue to make payments. Let’s examine the various exemptions that a filer can take advantage of in Nevada.


Real estate property as well as mobile homes up to $125,000 may be exempt. In order to do so, the declaration must be made before filing. A Las Vegas bankruptcy lawyer would be able to assist in organizing the proper paperwork.


Insurance categories ranging from group life, health proceeds, life insurance policies, and proceeds from life insurance policies are exempt from bankruptcy.


Property belonging to a business partnership as well as ERISA benefits have certain provisions to be exempt. Furthermore, public employee pensions cannot be affected by bankruptcy.

Personal Property

Items that are considered personal property such as appliances, furniture, home equipment, books, burial plots, funeral service trusts, health aids, keepsakes, motor vehicles, and guns all fall into this category but contain strict guidelines. A bankruptcy attorney in Nevada is highly specialized in knowing the limits for these items.

Public Benefits

Industrial insurance such as workers’ compensation claims, unemployment, vocational rehabilitation benefits, and uniforms would fall into this exemption category.

In terms of the filing process for bankruptcy in Nevada, the 2005 Bankruptcy Act makes it a requirement for filers to obtain credit counseling within six months of filing. Furthermore, they must complete a financial management course following the bankruptcy application. Bankruptcy is not just granted to anyone who files. Your income is analyzed and a decision is made depending on your financial transactions, living expenses, debts, and property. A petition is then filed at the Nevada district bankruptcy court by your attorney.

For a consultation about your bankruptcy options, call Ghandi Deeter Blackham Law Offices at 702-878-1115.

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