Bankruptcy Attorney Nevada: Chapter 7 vs 13, Exemptions & Means Test (2026)
🛡️ Confronting unmanageable debt, wage garnishment, or an impending foreclosure in Nevada? This comprehensive guide details Chapter 7 versus Chapter 13 paths, Nevada’s opt-out exemptions, the homestead equity protection, Means Test eligibility thresholds, and the federal bankruptcy court that serves the state.
Navigating Debt Relief in the State of Nevada
From Las Vegas housing and hospitality-industry income swings to medical debt and small-business setbacks across Reno and rural Nevada, unexpected financial trouble can push Nevada households into unsustainable debt quickly. Federal bankruptcy law offers a lawful path to discharge debt entirely or restructure it into an affordable court-supervised plan.
Working with an experienced Nevada bankruptcy attorney is especially valuable here because Nevada is an opt-out state — filers cannot use the federal exemption list in 11 U.S.C. § 522(d) and must rely on the Nevada schedule (NRS 21.090 and NRS 115.010) — and Nevada’s unusually large homestead cap can meaningfully change what a filer keeps.
Chapter 7 vs. Chapter 13: Choosing the Right Path
Chapter 7: Fresh Start Liquidation
Often called “straight bankruptcy,” Chapter 7 discharges qualifying unsecured debts (credit cards, medical bills, personal loans) in approximately 3 to 5 months. A court-appointed trustee reviews the petition to confirm non-exempt property is absent. In Nevada, the homestead exemption in NRS 115.010 protects up to $605,000 of owner-occupied equity, so many Chapter 7 filers keep their homes — but equity above the cap and the recording of a homestead declaration should be reviewed with an attorney before filing.
- Discharges unsecured debts within 90–120 days
- Requires passing the Nevada Means Test
- No mandatory debt repayment plan
Chapter 13: Wage Earner Restructuring
Designed for individuals and sole proprietors with steady income whose earnings exceed Chapter 7 limits, who owe non-dischargeable debt, or who need to cure mortgage arrears. Chapter 13 establishes a 3- to 5-year court-supervised repayment plan, allowing Nevada homeowners to stop foreclosure, catch up on missed mortgage payments, and protect equity above the homestead cap by paying a plan instead of surrendering property.
- Curbs mortgage defaults and can stop a foreclosure sale
- Consolidates obligations into one affordable monthly payment
- Protects non-exempt property that would otherwise be sold
Nevada’s Opt-Out Exemption System
Nevada is an opt-out state under 11 U.S.C. § 522(b)(2): federal exemptions are unavailable to Nevada filers, and the Nevada statutes decide what property is protected. This should be reviewed with an attorney well before filing:
A Nevada homestead occupied by its owner is protected up to $605,000 of equity, one of the more generous residential protections in the country. The protection is generally perfected by recording a declaration of homestead (NRS 115.020), and the cap is adjusted periodically. Equity above the cap may be reachable by a Chapter 7 trustee, which is why homeowners with very large equity often evaluate Chapter 13 instead.
Personal Property & Other Exemptions
Nevada law also exempts categories of personal property under NRS 21.090, including up to $15,000 of equity in a motor vehicle, household goods, tools of the trade, and certain retirement and public-benefit funds, each with its own statutory limit. Because the federal exemption list is not available in Nevada, the state limit for each asset category should be checked individually with an attorney rather than assumed.
Key Nevada Bankruptcy Statutes & Rules
| Statutory Element | Nevada Rule & Federal Code |
|---|---|
| Exemption System | 11 U.S.C. § 522(b)(2): Nevada is an opt-out state — federal exemptions are unavailable; filers use Nevada exemptions under NRS 21.090 and NRS 115.010. |
| Homestead Exemption | NRS 115.010: up to $605,000 of equity in an owner-occupied primary residence; declaration of homestead under NRS 115.020. |
| Personal Property Exemptions | NRS 21.090: household goods, up to $15,000 of vehicle equity, tools of the trade, and other personal property categories, each with statutory limits. |
| The Automatic Stay | 11 U.S.C. § 362: Halts foreclosure sales, repossessions, lawsuits, and wage garnishments upon filing. |
| Means Testing Period | 11 U.S.C. § 707(b): 6-month historical median income comparison against Nevada census figures. |
| Mandatory Credit Counseling | 11 U.S.C. § 109(h): Briefing required within 180 days before filing from a UST-approved agency. |
Source: Nevada Revised Statutes, Chapters 21 & 115; U.S. Bankruptcy Code (Title 11). Dollar limits are adjusted periodically — confirm current figures with a licensed Nevada attorney.
Nevada Federal Bankruptcy Court
Bankruptcy is federal law. Nevada is served by one federal district — the District of Nevada — with bankruptcy court locations in Las Vegas and Reno. Use the city links below to find attorneys near you:
Frequently Asked Questions: Nevada Bankruptcy
Can I use federal bankruptcy exemptions in Nevada?
No. Nevada is an opt-out state: under NRS 21.090 and NRS 115.010 Nevada has opted out of the federal exemption list in 11 U.S.C. § 522(d), so Nevada residents must use the Nevada state exemptions. An experienced attorney maps your home equity, vehicle, retirement accounts, and personal property against the Nevada schedule before you file.
How much home equity does the Nevada homestead exemption protect?
Under NRS 115.010, a Nevada homestead is protected up to $605,000 of equity in an owner-occupied primary residence, and the protection is generally perfected by recording a declaration of homestead under NRS 115.020. The figure is adjusted periodically and equity above the cap can be at risk in Chapter 7, which is one reason homeowners with very high equity sometimes choose Chapter 13. Confirm the current amount and your recording status with a Nevada attorney.
How does the Nevada Means Test determine Chapter 7 eligibility?
The Means Test compares your household’s average gross income over the 6 months prior to filing against the Nevada median income for your household size. If your income is at or below the median, you automatically qualify for Chapter 7. If it exceeds the median, a second calculation of IRS-allowed living expenses determines whether meaningful disposable income exists that would instead push you toward Chapter 13.
How does the Automatic Stay protect Nevada debtors?
Under 11 U.S.C. § 362, filing a bankruptcy petition in the Nevada federal bankruptcy court triggers an immediate injunction called the Automatic Stay. It halts creditor collection calls, pending wage garnishments, state court lawsuits, and foreclosure sales or vehicle repossessions the moment the petition is filed.
Which federal bankruptcy court handles my Nevada case?
Nevada is served by a single federal judicial district — the District of Nevada — with bankruptcy court locations in Las Vegas and Reno. Your case is generally filed in the location serving your county of residence, and your attorney will advise on how hearings and the 341 meeting of creditors are scheduled for your case.
Can taxes and student loans be discharged in a Nevada bankruptcy?
Income taxes owed to the IRS can be discharged in Chapter 7 or Chapter 13 if they satisfy the federal "3-2-240 rule" (return due 3+ years before filing, filed 2+ years before filing, assessed 240+ days before filing, with no fraud). Nevada has no state personal income tax, so federal tax debt is usually the main tax question. Most federal and private student loans remain non-dischargeable absent a showing of undue hardship, and domestic support obligations and criminal fines are never dischargeable.
Related Legal Resources in Nevada & Financial Law
Bankruptcy Attorney Arizona Guide
Compare Nevada’s opt-out exemption approach with neighboring Arizona.
Bankruptcy Attorney California Guide
Compare Nevada’s opt-out exemption approach with its large western neighbor.
Bankruptcy Attorney Washington Guide
See how another western state structures its homestead protection.
Bankruptcy Attorney Texas Guide
Review another large opt-out state’s property exemptions.
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Stop Creditor Harassment & Take Control of Your Finances
Do not let overwhelming debt dictate your future. A Nevada bankruptcy attorney can help you invoke the automatic stay, apply the right exemptions, and map out a pathway to permanent financial freedom. Most attorneys offer free initial case evaluations.
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