- Author: George Haines
- Published
Last Updated: September 2025 | Author: George Haines, Bankruptcy Attorney
When you’re considering Chapter 7 bankruptcy in Nevada, the first question is: “Do I qualify?” The answer isn’t always straightforward, but understanding Nevada’s income limits is your starting point.
This comprehensive guide breaks down everything you need to know about Chapter 7 income limits, the means test process, and qualification requirements based on current federal bankruptcy law and Nevada regulations.
🎯 Quick Qualification Check: Use our income table below to see if you automatically qualify, or scroll down for the complete means test guide.
Nevada Chapter 7 Income Qualification Requirements
You qualify for Chapter 7 bankruptcy in Nevada if:
- Your household income falls below Nevada’s median income for your family size, OR
- You pass the means test showing limited disposable income after essential expenses
Even if your income appears to exceed the median limits initially, you may still qualify through the means test process, which considers your allowable monthly expenses.
💡 Not sure which bankruptcy chapter is right for you? Check out our detailed comparison of Chapter 7 vs Chapter 13 bankruptcy options to make the best decision for your situation.
2025 Nevada Chapter 7 Income Limits
These figures are effective November 1, 2024, and valid through 2025:
| Household Size | Annual Income Limit | Monthly Income Limit |
|---|---|---|
| 1 person | $65,815 | $5,485 |
| 2 people | $81,519 | $6,793 |
| 3 people | $93,366 | $7,781 |
| 4 people | $103,947 | $8,662 |
| 5+ people | Add $9,900 per additional person | Add $825 per additional person |
Source: U.S. Department of Justice – Census Bureau Median Family Income
Important: If your income is below these limits, you automatically qualify for Chapter 7. If above, you must take the means test.
⚖️ Already know you need to file? Learn what happens during a Chapter 7 bankruptcy to understand the complete process.
How Your Income Gets Calculated for Bankruptcy
Your “current monthly income” for bankruptcy purposes doesn’t mean your current paycheck. According to federal bankruptcy law, it’s the average of all income received during the 6 months before filing bankruptcy.
This timing can be strategically important. If you recently experienced a reduction in income, waiting additional months before filing may lower your 6-month average and potentially help you qualify for Chapter 7 rather than Chapter 13.
Income Sources INCLUDED:
- Wages and salary (gross amount, before taxes)
- Self-employment and business income
- Unemployment benefits
- Rental income
- Alimony and child support received
- Pension and retirement payments
- Investment income (dividends, interest)
- Side gig income (Uber, freelancing, etc.)
Income Sources EXCLUDED:
- Social Security benefits
- Certain disability benefits
- COVID-19 stimulus payments
- TANF and food assistance
- Victim compensation payments
Strategic Timing Considerations
If you recently lost a job or took a pay cut, waiting a few months before filing can lower your 6-month income average and help you qualify.
💼 Dealing with unemployment? Read our guide on Las Vegas unemployment and the bankruptcy means test for specific strategies.
The Nevada Chapter 7 Means Test Process
The means test determines if people with above-median income still qualify for Chapter 7. It calculates your disposable income after subtracting allowable living expenses.
📚 Want to understand the complete means test process? Our detailed article on the means test and median income for Nevada provides additional insights.
How the Means Test Works:
Step 1: Calculate your average monthly income over 6 months
Step 2: Subtract allowable monthly expenses using IRS standards
Step 3: Compare your disposable income to qualification thresholds
Means Test Results:
- Monthly disposable income under $124.58 (or $7,475 over 60 months): You qualify for Chapter 7
- Monthly disposable income over $207.92 (or $12,475 over 60 months): You must file Chapter 13
- Between $124.58-$207.92: Additional calculations required to determine qualification
Source: U.S. Trustee Program Means Testing Guidelines
Allowable Expense Categories:
National Standards (IRS-determined amounts):
- Food and clothing
- Personal care and household supplies
- Transportation (car payments, insurance, gas)
- Healthcare expenses
Local Standards (Nevada-specific amounts):
- Housing and utilities
- Transportation costs
Actual Expenses (your real costs):
- Court-ordered support payments
- Income taxes
- Mandatory employment deductions
- Health insurance premiums
- Childcare expenses
- Secured debt payments (mortgage, car loans)
Chapter 7 vs Chapter 13: Comparison
| Factor | Chapter 7 | Chapter 13 |
|---|---|---|
| Income Requirements | Must pass means test | No income limits |
| Asset Protection | May lose non-exempt assets | Keep all assets |
| Timeline | 3–6 months | 3–5 years |
| Monthly Payments | None | Required repayment plan |
| Best For | Low/moderate income, high unsecured debt | Higher income, behind on secured debts |
🤔 Still unsure which chapter fits your situation? Our comprehensive guide on which is better: Chapter 7 or Chapter 13 bankruptcy can help you decide.
Common Chapter 7 Disqualification Issues
According to federal bankruptcy law and court precedents, these issues can prevent Chapter 7 qualification:
- Hiding or transferring assets before filing (fraudulent transfer)
- Failing to report all income sources on required forms
- Taking on new debt just before filing with no intention to repay
- Filing too soon after a previous bankruptcy discharge
- Skipping required credit counseling within 180 days of filing
- Luxury purchases within 90 days of filing ($750+ threshold)
⚠️ Want to avoid costly mistakes? Read our detailed guide on things you should probably not do before filing for bankruptcy and our bankruptcy dos and don’ts.
✅ Free Consultation Available: Get personalized advice on your specific situation – contact us for a free consultation.
Document Requirements for Means Test
Federal bankruptcy law requires these documents for accurate means test calculation:
Income Documentation:
- ☐ 6 months of pay stubs
- ☐ Last 2 years of tax returns
- ☐ Bank statements (6 months)
- ☐ Profit/loss statements (if self-employed)
- ☐ Benefits letters (unemployment, child support, etc.)
Expense Documentation:
- ☐ Mortgage/rent statements
- ☐ Utility bills
- ☐ Insurance payments
- ☐ Healthcare expenses
- ☐ Transportation costs
- ☐ Childcare receipts
Required Certificates:
- ☐ Credit counseling certificate (from approved agency)
📋 Need help organizing your paperwork? Our article on your first visit to your Las Vegas bankruptcy lawyer’s office explains exactly what to bring.
🏠 Worried about losing your home? Learn about Nevada exemptions in bankruptcy to understand what property you can protect.
Special Circumstances and Legal Exemptions
Means Test Exemptions
According to 11 U.S.C. § 707(b)(2)(C), you may be exempt from the means test if:
- Your debts are primarily business-related (not consumer debts)
- You’re a disabled veteran whose debts were incurred during active duty or homeland defense activities
Nevada Homestead Exemption
Under Nevada Revised Statutes § 115.010, Nevada allows up to $605,000 in home equity protection, meaning most homeowners can keep their primary residence in Chapter 7.
Self-Employed Filers
Business owners must provide additional documentation under federal bankruptcy requirements:
- Detailed profit and loss statements
- Business expense documentation
- Monthly income averages over 6 months
- Clear separation of business and personal expenses
👔 Running a business and need debt relief? Our guide on how bankruptcy is helping businesses recover provides insights for business owners.
🎓 Have student loans? Check out our guides on benefits of bankruptcy when you owe student loans and discharging student loans in Las Vegas bankruptcy.
🏠 Concerned about keeping your home? Learn whether bankruptcy can stop foreclosure on your Las Vegas home.
🔒 Privacy concerns? Read about whether your family needs to know you’re filing for bankruptcy.
Alternatives If You Don’t Qualify for Chapter 7
If you don’t qualify for Chapter 7, federal bankruptcy law provides these alternatives:
Chapter 13 Bankruptcy
- Repay portion of debts over 3-5 years under court-supervised plan
- No income limits (must have regular income)
- Keep all assets while making payments
- Often results in significant debt reduction
💰 Learn more: Read our detailed explanation of what happens when you file Chapter 13 bankruptcy in Las Vegas.
Debt Settlement
- Negotiate reduced balances with creditors outside of court
- Typically results in paying 40-60% of original debt
- Avoids bankruptcy filing on credit report
- May have tax consequences on forgiven debt
Credit Counseling
- Consolidate payments through non-profit counseling agency
- May negotiate reduced interest rates with creditors
- Doesn’t reduce principal balance owed
- Less impact on credit score than bankruptcy
🤷♂️ Wondering if you should file at all? Our article should I file for bankruptcy walks through the decision-making process.
📞 Get Professional Guidance: Every situation is unique. Call us at (702) 880-5554 for a free consultation to discuss your specific options.
Professional Legal Consultation
Determining Chapter 7 eligibility involves complex federal bankruptcy law calculations and strategic timing considerations. While this guide provides the legal framework, bankruptcy laws contain many nuances that can significantly impact your case.
Consider consulting with a qualified bankruptcy attorney if:
- Your income is close to the median limits
- You have complex income sources (business, rentals, investments)
- You’re unsure about optimal timing for filing
- You have significant assets that need protection
The means test and qualification process involves multiple federal forms and calculations, but with proper legal guidance, you can navigate the system effectively.
Benefits of Professional Legal Guidance
✅ Maximize Qualification Chances: Proper legal analysis significantly increases your chances of meeting federal requirements.
✅ Avoid Legal Pitfalls: Professional attorneys help you avoid common errors that lead to case dismissal or denial.
✅ Strategic Timing: Expert analysis of when to file can determine qualification success.
✅ Asset Protection: Ensure maximum property protection under Nevada and federal exemption laws.
🌟 Addressing Common Concerns: Worried about misconceptions surrounding bankruptcy? Read our article on Las Vegas myths about bankruptcy to understand the facts.
🎯 Understanding the Fresh Start: Learn about Las Vegas bankruptcy’s “fresh start” benefits and how federal bankruptcy law helps rebuild financial stability.
Free Legal Consultation Available
📞 Call Now: (702) 880-5554
✅ What Our Consultation Includes:
- Free initial case evaluation (no obligation)
- Personalized income and means test analysis
- Clear explanation of all available legal options
- Honest assessment of qualification likelihood
⏰ Act Promptly: Income limits and financial circumstances change. Understanding your legal options sooner enables better strategic planning.
💻 Online Scheduling Available: Schedule your free consultation online at your convenience.
Legal Disclaimer: This guide provides general information about federal bankruptcy law and Nevada-specific requirements. Every situation is unique, and bankruptcy laws are complex. Consult with a qualified bankruptcy attorney for legal advice specific to your circumstances.
Official Legal Resources:
- 🏛️ Federal Guidelines: U.S. Trustee Means Testing Information
- ⚖️ Local Court: U.S. Bankruptcy Court, District of Nevada
- 📋 Official Forms: Administrative Office of U.S. Courts Bankruptcy Forms
- 🎓 Free Legal Education: Free Las Vegas bankruptcy information from federal courts
Related Legal Articles:
- Can I still file for individual bankruptcy in Las Vegas?
- How many times can you file bankruptcy under federal law?
- You don’t have to be poor to file bankruptcy
- Las Vegas elderly debt relief legal options
- Financial planning and bankruptcy considerations
This article was last updated in September 2025 with current federal bankruptcy law requirements and Nevada-specific income figures. Income limits are updated twice yearly by the U.S. Trustee Program.
