Bankruptcy is a situation that no one really wants to go through. However, it might be the only option available to you if you’re struggling with insurmountable debt and no other option has been successful to alleviate it. Filing bankruptcy can help you pay back your debts and essentially start over with your finances.

Although there are several types of bankruptcy, Chapter 13 is one of the most common for individuals dealing with debt. It is a good option because it allows you to organize your debts and ultimately come up with a plan to pay them back. If you are considering this route and are located in Nevada, it’s important to know the laws regarding Chapter 13 bankruptcy.

Who is Eligible?

As per bankruptcy law, you are eligible for Chapter 13 if you have unsecured debts that are worth under $360,475. Meanwhile, your secured debts must be under $1,081,400 in total. You are also required to take and complete a credit counseling course. Finally, you must also not have had any other bankruptcy dismissed within 180 days of filing.

Pre-Filing Requirements

To file for Chapter 13 bankruptcy in Nevada, you must first successfully complete a credit counseling course. Courses can be taken online or at a physical location. If you cannot afford to pay for the courses, you may be able to have cost reduced or even receive a waiver depending on your level of income. For instance, if your income is under 150 percent of the federal poverty level, you should qualify for one or the other.

In Nevada, locations to file include these counties: Clark, Esmerelda, Lincoln and Nye.

Chapter 13 Plan

Bankruptcy law determines how the Chapter 13 process works. There are certain documents you are required to file, but the most important factor is the bankruptcy plan. You, the debtor, must submit a Chapter 13 repayment plan along with your bankruptcy petition or 14 days after you file the petition.

Generally speaking, the Chapter 13 repayment plan dictates how you will make repayments toward your debt. A bankruptcy trustee will oversee your case and disburse payments to your creditors until you have repaid them. However, it’s important to note that you may not necessarily be required to pay back your debts in full. Depending on the claim of the creditor, you may not have to fully pay. There are three types of claims: priority, secured and unsecured. Priority must always be paid in full.

The plan must include terms stating that repayment of your debts must begin within 30 days after you file for bankruptcy.

Automatic Stay

An automatic stay is also initiated after your Chapter 13 bankruptcy has begun. Your bankruptcy attorney can ensure that you understand what this means. The stay temporarily prevents your creditors from trying to collect on your consumer debts during the bankruptcy process. These are debts involving family, household or personal purposes.

Your repayment plan must be approved by the bankruptcy court during a confirmation hearing.

If you are filing for bankruptcy, you must have an experienced bankruptcy attorney on your side. It gives you a better opportunity to have a successful case and hearing so you can move forward to reorganize your finances and pay back your debts. Contact Fair Fee Legal Services at your earliest convenience.