- Author: George Haines
- Published
Facing overwhelming debt in Nevada can feel like being trapped in a financial sandstorm with no escape.
If you are wondering: What is the difference between Chapter 7 vs. Chapter 13 Bankruptcy in Nevada?
In Nevada, Chapter 7 bankruptcy focuses on discharging (eliminating) unsecured debts like credit cards and medical bills, while Chapter 13 involves repaying debts over time through a repayment plan, often allowing debtors to keep their homes and cars.
Chapter 7 is generally quicker, often finalized within about six months, and may require selling some non-exempt assets. In contrast, Chapter 13 takes longer—typically three to five years—during which debtors develop a repayment plan that can discharge a broader range of debts than Chapter 7.
As Nevada bankruptcy attorneys with over 15 years of experience helping thousands of residents achieve financial freedom, we provide this definitive guide to help you make an informed decision.
What Is Bankruptcy and Key Concepts
Bankruptcy is a legal process that provides individuals with overwhelming debt the opportunity to either eliminate most unsecured debts or create a manageable repayment plan. In Nevada, as in all states, bankruptcy cases are handled in federal court under rules outlined in the U.S. Bankruptcy Code.
Bankruptcy discharge refers to the court order that releases debtors from personal liability for certain types of debts, preventing creditors from taking collection actions.
Automatic stay is the immediate court protection that prevents creditors from continuing collection activities, including foreclosure, repossession, wage garnishment, and even harassing phone calls. Both Chapter 7 and Chapter 13 filings issue an automatic stay that prevents creditors from collecting debts during the bankruptcy process.
Bankruptcy trustee is the court-appointed official who administers your bankruptcy case, reviews your paperwork, and in Chapter 7, identifies and sells non-exempt property to pay creditors.
Means test determines eligibility for Chapter 7 bankruptcy based on whether your income falls below Nevada’s median income for your household size. Individuals who file Chapter 7 must not have disposable income to qualify; otherwise, they may be directed to Chapter 13.
Why Bankruptcy Matters to Nevadans
Nevada residents face unique financial pressures that make understanding bankruptcy options particularly important. The state’s economy, heavily dependent on tourism and hospitality, experienced significant volatility during recent economic downturns, leaving many residents with unstable income streams and mounting debt.
Nevada homeowners benefit from one of the most generous homestead exemptions in the country ($605,000 as of 2025), making bankruptcy a potentially powerful tool for debt relief while protecting your home.
Early warning signs that bankruptcy might be appropriate include:
- Using credit cards for basic necessities
- Receiving regular collection calls
- Facing foreclosure or repossession notices
- Having wages garnished
- Being unable to make minimum monthly payments
- Considering payday loans or high-interest borrowing
Step-by-Step Guide for Filing Bankruptcy in Nevada
- Undergo credit counseling with a certified agency within 180 days before submitting your bankruptcy petition.
- This requirement applies to both Chapter 7 and Chapter 13 cases.
- Take the means test to determine Chapter 7 eligibility. If your household income is below Nevada’s median income ($58,613 for individuals, $83,497 for a family of four as of 2025), you automatically qualify for Chapter 7.
- Gather required documentation including tax returns for the past two years, pay stubs from the last 60 days, bank statements, property deeds, vehicle titles, and a comprehensive list of creditors.
- Complete bankruptcy petition and schedules listing all assets, debts, income, expenses, and financial transactions from the previous two years. Accuracy is critical as errors or omissions can result in dismissal or even charges of fraud.
- File your petition with the U.S. Bankruptcy Court, District of Nevada in either Las Vegas or Reno, along with the filing fee ($338 for Chapter 7, $313 for Chapter 13 as of 2025) or fee waiver application.
- Attend the 341 meeting of creditors approximately 30-45 days after filing, where the trustee will verify your identity and may ask questions about your financial situation.
- Complete debtor education course from an approved provider before receiving your discharge.
- Receive discharge after approximately 3-4 months for Chapter 7 or upon completion of your repayment plan (3-5 years) for Chapter 13. Chapter 13 may be preferred by debtors who are behind on mortgage payments and want to avoid foreclosure.
Chapter 7 vs. Chapter 13: Options and Differences
Chapter 7 Bankruptcy
- Process: Liquidation bankruptcy that eliminates most unsecured debts within 3-4 months
- Eligibility: Must pass the means test (income below Nevada median)
- Property: Non-exempt assets may be sold by the trustee to pay creditors
- Duration: Typically 3-4 months from filing to discharge
- Credit Impact: Remains on credit report for 10 years
- Success Rate: Chapter 13 typically has a higher failure rate compared to Chapter 7 due to long repayment terms
Chapter 13 Bankruptcy
- Process: Reorganization bankruptcy with a 3-5 year repayment plan, allowing individuals to reorganize debts and pay off secured debts over time
- Eligibility: Regular income and unsecured debts under $465,275; secured debts under $1,395,875
- Property: Keep all property, including non-exempt property, while making payments
- Duration: 3-5 years to complete the plan
- Credit Impact: Remains on credit report for 7 years
- Payment Plan: The monthly payment plan is based on what the debtor can afford, allowing for flexibility
| Feature | Chapter 7 | Chapter 13 |
|---|---|---|
| Primary Benefit | Quick debt elimination | Asset protection |
| Time to Completion | 3–4 months | 3–5 years |
| Effect on Foreclosure | Delays only temporarily | Can stop and catch up payments |
| Co-signer Protection | None | Protected during repayment plan |
| Previous Bankruptcy | Must wait 8 years after prior Ch. 7 | Must wait 2 years after prior Ch. 13 |
| Nevada Filing Fee (2025) | $338 | $313 |
Nevada-Specific Bankruptcy Information
Nevada bankruptcy exemptions are particularly generous compared to many other states, allowing residents to protect significant assets even when filing Chapter 7:
Homestead exemption: Up to $605,000 of equity in your primary residence
Vehicle exemption: Up to $15,000 equity in one vehicle
Personal property exemptions: Include household goods ($12,000), jewelry ($5,000), and work tools ($10,000)
Retirement accounts: Most are fully protected, including 401(k)s, IRAs, and pension plans
Wildcard exemption: $10,000 that can be applied to any property
Nevada requires filers to have lived in the state for at least 730 days (2 years) before filing to use Nevada exemptions. Otherwise, you must use exemptions from the state where you lived for the majority of the 180-day period prior to the two-year period.
The Nevada bankruptcy courts have locations in:
- Las Vegas: 300 Las Vegas Blvd. South, Las Vegas, NV 89101
- Reno: 300 Booth Street, Reno, NV 89509
Debts That Cannot Be Discharged in Nevada Bankruptcy
Understanding which debts can and cannot be eliminated through bankruptcy is crucial for Nevada residents considering this option. Our comprehensive debt relief strategies can help address even non-dischargeable debts.
Non-dischargeable debts in both Chapter 7 and Chapter 13:
- Most student loans (except in rare cases of “undue hardship” as determined by the court)
- Recent tax debts (generally those less than 3 years old)
- Child support and alimony obligations
- Court-ordered restitution for criminal acts
- Debts from willful and malicious injury to another person or property
- Certain homeowner association (HOA) fees accrued after filing
- Most government fines and penalties
According to the United States Courts’ bankruptcy statistics, approximately 12% of Nevada bankruptcy filers have significant non-dischargeable debts that require specialized legal strategies.
Chapter 13 offers advantages for handling certain non-dischargeable debts by allowing you to pay them off gradually through your repayment plan, often without additional interest or penalties. This can be particularly valuable for managing tax debts or domestic support arrears that cannot be eliminated. Debtors have less liability for non-dischargeable debts under Chapter 13 than under Chapter 7, where certain debts cannot be discharged at all.
Our attorneys can help you develop strategies for addressing non-dischargeable debts, including potential loan modification options for mortgage debt that may complement your bankruptcy filing.
Life After Bankruptcy: Recovery Strategies for Nevadans
The bankruptcy discharge is not the end of your financial journey—it’s a new beginning. Nevada residents who take proactive steps after bankruptcy typically recover their credit scores and financial stability faster than expected.
Financial recovery timeline for Nevada bankruptcy filers:
- 0-6 months: Focus on building emergency savings and establishing a sustainable budget
- 6-12 months: Apply for secured credit cards to begin rebuilding credit
- 12-24 months: Most filers qualify for auto loans (albeit at higher interest rates)
- 24-36 months: Many become eligible for conventional mortgage loans
- 48+ months: Credit scores often recover to pre-bankruptcy levels or better
According to a study by the Federal Reserve Bank of Philadelphia, consumers’ credit scores typically improve by 80-100 points within a year of bankruptcy discharge, demonstrating that recovery can begin almost immediately.
The Nevada Department of Business & Industry offers free financial literacy resources that bankruptcy filers can leverage to strengthen money management skills and avoid future financial difficulties.
Our firm provides all clients with a post-bankruptcy financial recovery plan tailored to their specific situations, focusing on proven techniques to rebuild credit, establish savings, and develop sustainable financial habits.
For many Nevadans, bankruptcy becomes a positive turning point—the American Bankruptcy Institute reports that 94% of filers feel their financial situation improved after completing the bankruptcy process.
Your Path to Financial Freedom Starts Here
Don’t continue suffering under the weight of overwhelming debt. Freedom Legal Team has helped thousands of Nevada residents successfully navigate bankruptcy and rebuild their financial lives. Our experienced attorneys will:
- Provide a free, comprehensive financial assessment to determine if bankruptcy is truly your best option
- Develop a customized debt relief strategy that protects your assets and addresses your specific concerns
- Handle all paperwork and court appearances so you can focus on moving forward
- Guide you through the entire process with compassion and without judgment
- Offer post-bankruptcy guidance to help you rebuild credit and establish financial security
Our clients consistently report immediate relief from creditor harassment, significant reductions in financial stress, and renewed hope for their financial future. Read about real client experiences in our bankruptcy success stories section.
Contact Freedom Legal Team today at (702) 745-8584 for a free, no-obligation consultation to discuss whether Chapter 7 or Chapter 13 bankruptcy is the right solution for your financial challenges. We’ve helped Nevada residents discharge millions in debt while protecting their homes and vehicles—we can help you too.
FAQs About Ch 7 and Ch 13 Bankruptcy in NV
How much does it cost to file bankruptcy in Nevada?
Filing fees in Nevada are $338 for Chapter 7 and $313 for Chapter 13. Attorney fees typically range from $1,200-$2,000 for Chapter 7 and $3,000-$4,000 for Chapter 13. Many attorneys offer payment plans, and fee waivers are available for those who qualify.
Will I lose my home if I file Chapter 7 in Nevada?
Most Nevada homeowners do not lose their homes in Chapter 7 bankruptcy thanks to Nevada’s generous $605,000 homestead exemption. If your equity falls within this limit, your home is protected.
Can I keep my car in bankruptcy?
Yes, in most cases. Nevada allows you to exempt up to $15,000 of equity in one vehicle. Chapter 13 allows you to keep your vehicle regardless of equity by including any remaining payments in your repayment plan.
How long does bankruptcy stay on my credit report?
Chapter 7 bankruptcy remains on your credit report for 10 years, while Chapter 13 stays for 7 years. However, most filers see their credit scores begin to recover within 1-2 years after discharge.
Can I file bankruptcy without a lawyer in Nevada?
While legally possible, it’s not recommended. Nevada bankruptcy laws are complex, and mistakes can lead to dismissed cases or even denied discharges. Most filers who succeed without attorneys have very simple cases with few assets.
Can bankruptcy stop an eviction in Nevada?
Bankruptcy’s automatic stay can temporarily halt eviction proceedings, but landlords can file motions to continue the eviction. Chapter 13 may provide more time and options to catch up on rent payments than Chapter 7.
How often can I file bankruptcy in Nevada?
You must wait 8 years between Chapter 7 filings, 2 years between Chapter 13 filings, 6 years between Chapter 13 and subsequent Chapter 7, and 4 years between Chapter 7 and subsequent Chapter 13.
