How to File for Bankruptcy in Nevada
Preparing to file for bankruptcy in Nevada is something that takes some serious preparation. Research is often the first step for debtors interested in filing for bankruptcy. One thing that is important to know is that the bankruptcy process in the state of Nevada closely mirrors the bankruptcy process throughout the rest of the country. This is why debtors should take time to become familiar with federal bankruptcy laws and regulations before taking any steps to file in Nevada. Of course, it is also beneficial to look into the specific requirements that must be fulfilled when filing for bankruptcy in the state of Nevada.
The Essentials of Filing for Bankruptcy in Nevada
There are several types of bankruptcy that a person may be eligible for in Nevada. The most common form is Chapter 7 bankruptcy. This form of bankruptcy allows for debts to be discharged. Chapter 13 is another common option. This form of bankruptcy allows for a debtor to set up a payment plan for paying back creditors over time. While Chapter 7 bankruptcy and Chapter 13 bankruptcy are popular options, they are not the only options that are available in the state of Nevada. Farmers and fishermen in the state actually have the option to file for a special form of bankruptcy called Chapter 12 bankruptcy. In addition, a form of bankruptcy called Chapter 11 bankruptcy exists for people who have large amounts of personal or business debt.
How to Start the Bankruptcy Process in Nevada
There are several key steps that must be completed before the bankruptcy process can get off the ground for a debtor in Nevada. A person will actually need to complete a credit counseling course during the six months prior to filing for bankruptcy. It is important to take this course through an agency that is approved in the state of Nevada. The list of approved agencies can be found here. It should be noted that debtors also need to complete a debtor education course once the bankruptcy process has been started. The list of approved providers for this course can be found here.
It is necessary to file a formal petition with the court when seeking to begin the bankruptcy process. This petition activates an automatic stay. The automatic stay prevents all creditors from making attempts to contact a debtor or collect any funds that are owed. A means test is one of the most important steps of the bankruptcy process. A debtor must submit detailed information and paperwork regarding income, assets and liabilities to the court as part of a means test. This information will determine a debtor's eligibility for bankruptcy protection. It will also be used to determine which form of bankruptcy a person can file under. One other key component of the bankruptcy process is something called a meeting of creditors. This is a mandatory meeting that is arranged by the court. The meeting is important because it provides creditors with a final opportunity to prove that a debtor in a Chapter 7 case possesses nonexempt assets that can be forfeited. It also gives creditors the option to contest the terms of a payment plan that has been set up as part of a Chapter 13 case.
A Look at the Specifics of Filing for Bankruptcy in Nevada
The United States Bankruptcy Court for the District of Nevada has locations in Las Vegas and Reno. The filing fee when filing for Chapter 7 bankruptcy is $335. The filing fee when filing for Chapter 13 bankruptcy is $310. The fee schedule for all other types of bankruptcy can be accessed here. The forms that are needed when filing for bankruptcy in Nevada can be accessed here.