Filing for bankruptcy in Nevada does not mean losing everything. Nevada has some of the most generous bankruptcy exemptions in the country, including a homestead exemption that protects up to $605,000 in home equity. Marathon Law Group helps Las Vegas residents understand their options and navigate the bankruptcy process with confidence.
How Chapter 7 Bankruptcy Works in Nevada
Chapter 7 bankruptcy — sometimes called liquidation bankruptcy — allows eligible individuals to discharge most unsecured debts within approximately 3 to 4 months. Dischargeable debts include credit card balances, medical bills, personal loans, and most other unsecured obligations.
To qualify for Chapter 7 in Nevada, you must pass the means test. Your income must be below Nevada’s median income level, or your disposable income after allowed expenses must fall below a threshold set by federal law. An attorney can quickly determine whether you qualify.
Nevada’s Homestead Exemption — Protecting Your Home
One of Nevada’s most significant bankruptcy protections is the homestead exemption under NRS 21.090. Nevada protects up to $605,000 in equity in your primary residence from creditors in bankruptcy. This means if your home has $300,000 in equity, that equity is fully protected and you can keep your home through Chapter 7.
Important: the homestead exemption only applies to your primary residence. Investment properties and vacation homes are not protected.
Other Nevada Bankruptcy Exemptions
Beyond the homestead exemption, Nevada protects several other categories of property in bankruptcy:
- Vehicle: up to $15,000 in equity in one vehicle
- Retirement accounts: most 401(k), IRA, and pension accounts are fully protected
- Life insurance: cash value of life insurance policies is protected
- Household goods: up to $12,000 in furniture, appliances, and household items
- Tools of the trade: up to $4,500 in tools or equipment used in your occupation
- Wages: 75% of disposable weekly earnings
Chapter 13 Bankruptcy — An Alternative to Chapter 7 in Nevada
Not everyone qualifies for Chapter 7, and for some people Chapter 13 bankruptcy is actually the better option even when they do qualify. Chapter 13 allows you to keep assets you might lose in Chapter 7 while reorganizing your debts into a manageable 3 to 5 year repayment plan.
Chapter 13 is often the right choice when:
- You are behind on your mortgage and want to save your home from foreclosure
- You have non-exempt assets you want to keep that would be liquidated in Chapter 7
- You have debts that cannot be discharged in Chapter 7 but can be managed in a repayment plan
- Your income is too high to pass the Chapter 7 means test
Under Nevada’s generous exemptions, most people filing Chapter 13 in Las Vegas pay back only a fraction of their unsecured debts over the repayment period with the remainder discharged at the end of the plan.
The Automatic Stay — Immediate Protection When You File Bankruptcy
One of the most powerful aspects of any bankruptcy filing is the automatic stay. The moment you file your petition — whether Chapter 7 or Chapter 13 — an automatic stay goes into effect immediately under federal bankruptcy law.
The automatic stay immediately stops:
- All collection calls and written demands
- Wage garnishments
- Bank account levies
- Foreclosure proceedings (temporarily)
- Lawsuits and judgments being enforced
- Repossession of vehicles
For people facing aggressive creditor action in Las Vegas, the automatic stay provides immediate breathing room while the bankruptcy process proceeds.
Debts That Cannot Be Discharged in Chapter 7
While Chapter 7 eliminates most unsecured debts, certain obligations survive bankruptcy:
- Child support and alimony
- Most student loan debt
- Recent income tax debts (generally within 3 years)
- Debts from fraud or intentional wrongdoing
- Criminal fines and restitution
- Debts not listed in your bankruptcy filing
Frequently Asked Questions
Will bankruptcy ruin my credit forever?
Chapter 7 stays on your credit report for 10 years, but many people find their credit score begins improving within 1 to 2 years of discharge as they rebuild with secured cards and on-time payments.
How long does Chapter 7 bankruptcy take in Nevada?
Most Chapter 7 cases are completed in 3 to 4 months from the date of filing to discharge.
Can I file bankruptcy if I own a business in Las Vegas?
Yes. Business owners can file personal Chapter 7 bankruptcy. Whether to include business debts depends on how the business is structured. Marathon Law Group can advise on the best approach for your situation.
If you are considering bankruptcy in Las Vegas or Clark County, contact Marathon Law Group for a free consultation. We will review your situation and explain your options clearly.
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How Marathon Law Group Helps Las Vegas Bankruptcy Clients
Filing for bankruptcy is a significant legal step that requires careful preparation. Errors in your bankruptcy petition can result in a case being dismissed or, in cases involving fraud, serious legal consequences. Working with an experienced bankruptcy attorney ensures your filing is complete, accurate, and timed properly to maximize the protection you receive.
Marathon Law Group guides Las Vegas residents through every stage of the bankruptcy process — from the initial means test through the final discharge. We explain your options clearly, help you understand exactly what property you keep, and make sure you receive the full benefit of Nevada’s generous exemptions. If you are struggling with debt and need a fresh start, contact us for a free, confidential consultation. We are here to help you move forward with confidence.