Nevada Bankruptcy Attorney — Chapter 7 vs Chapter 13 in Las Vegas
When debt becomes overwhelming, bankruptcy can provide a legal path to financial relief. But choosing the right type of bankruptcy is critical — and the wrong choice can cost you property, time, or the ability to discharge the debts that matter most. A qualified Nevada bankruptcy attorney can evaluate your specific financial situation and guide you toward the option that best protects your assets and achieves your goals. Marathon Law Group helps Las Vegas residents navigate both Chapter 7 and Chapter 13 bankruptcy under Nevada law.
How Chapter 7 Bankruptcy Works in Nevada
Chapter 7 is often called “liquidation bankruptcy” — but in practice, most Nevada filers keep everything they own because of generous state exemptions. Chapter 7 works by discharging eligible unsecured debts, including credit card debt, medical bills, personal loans, and utility arrears. The process typically takes three to four months from filing to discharge.
To qualify for Chapter 7, you must pass the “means test” — a calculation that compares your average monthly income over the past six months to Nevada’s median income. If your income is below the median, you automatically qualify. If it exceeds the median, additional calculations determine whether you have sufficient disposable income to repay creditors under Chapter 13.
The moment a Chapter 7 petition is filed, the automatic stay immediately halts most collection actions — including lawsuits, wage garnishments, bank levies, and harassing creditor calls. This relief begins the day you file, not the day your case is resolved.
Nevada Chapter 7 Timeline
A typical Nevada Chapter 7 case proceeds as follows: file petition and schedules, attend a 341 Meeting of Creditors (usually 30 days after filing), creditor objection period (typically 60 days), and final discharge order — generally three to four months total from filing date.
How Chapter 13 Bankruptcy Works in Nevada
Chapter 13 is a reorganization bankruptcy. Rather than discharging debt immediately, you propose a three-to-five-year repayment plan that pays back some or all of what you owe, based on your disposable income and the nature of the debt. Chapter 13 is particularly valuable when you have significant assets you want to protect (such as a home with equity), when you have non-dischargeable debts like certain tax obligations or domestic support arrears, or when you don’t qualify for Chapter 7.
One of Chapter 13’s most powerful features is its ability to stop a foreclosure and allow you to catch up on missed mortgage payments through the repayment plan. If you’re behind on your mortgage and want to keep your home, Chapter 13 may be the right tool. A Nevada bankruptcy attorney can model both scenarios for your specific financial profile so you can make an informed decision.
Nevada Exemptions — What You Keep in Bankruptcy
Nevada has some of the most debtor-friendly exemption laws in the country. Exemptions protect specific types of property from being liquidated in Chapter 7 or counted against you in Chapter 13. Key Nevada bankruptcy exemptions include:
- Homestead exemption: Up to $605,000 in home equity (as of recent Nevada law — confirm current amounts with your attorney)
- Motor vehicle exemption: Up to $15,000 in vehicle equity
- Retirement accounts: Most 401(k)s, IRAs, and pension plans are fully protected
- Personal property: Household goods, clothing, and electronics up to certain limits
- Wages: 75% of disposable earnings are protected from garnishment
- Life insurance: Cash value of life insurance policies may be exempt
Understanding and properly claiming Nevada exemptions is one of the most important functions your bankruptcy attorney performs. Failing to claim an exemption can result in losing property that was legally protectable.
Which Debts Cannot Be Discharged in Nevada Bankruptcy
Not all debts go away in bankruptcy. Federal law excludes certain obligations from discharge in both Chapter 7 and Chapter 13, including:
- Most student loan debt (except in cases of demonstrable undue hardship)
- Child support and alimony obligations
- Most federal and state income tax debt less than three years old
- Debts arising from fraud or intentional misrepresentation
- Criminal fines and restitution orders
- Debts for personal injury or death caused by drunk driving
If the debts you most need to eliminate are on this list, bankruptcy may still help by discharging other debts and freeing up income to address the non-dischargeable obligations. Our attorneys will analyze your complete debt profile before you file.
Who Qualifies for Chapter 7 in Nevada
Qualification for Chapter 7 requires passing the means test. For 2024-2025, Nevada’s median household income thresholds vary by household size. You may also qualify if you have primarily business debts rather than consumer debts. If you’ve received a Chapter 7 discharge within the past eight years, you cannot receive another — but you may be eligible for Chapter 13.
Our Nevada bankruptcy attorneys evaluate every client’s eligibility before any filing decisions are made. We never recommend a bankruptcy chapter without fully analyzing your income, assets, debts, and goals. Contact our Las Vegas bankruptcy team for a free, confidential consultation.
Marathon Law Group’s Bankruptcy Approach
Marathon Law Group guides Las Vegas and Clark County residents through every step of the bankruptcy process — from the initial means test analysis through the final discharge order. We handle the paperwork, represent you at the Meeting of Creditors, respond to trustee inquiries, and ensure your exemptions are properly claimed and defended.
Bankruptcy is not failure — it is a legal tool designed to give honest debtors a fresh start. If overwhelming debt is affecting your quality of life, contact our Nevada bankruptcy attorney team today. We also handle personal injury cases and can advise clients dealing with medical debt from accidents — see our Nevada personal injury overview for more information.