All states must adhere to federal standards for bankruptcy according to the 2005 Bankruptcy Act. There are 4 District Bankruptcy Courts in Nevada in which a petitioner can file. The most commonly filed types of bankruptcy are Chapter 7, Chapter 11, Chapter 12 and Chapter 13.
Chapter 7 is elimination bankruptcy, where the most unsecured debt can be taken off of the financial record of the petitioner. It is an attractive option for those with a high debt to low income ratio. The non-exempt assets may be used to pay off creditors, so some people opt for a different type of bankruptcy.
Also known as restructuring debt, Chapter 13 bankruptcy allows petitioners to make a plan for repayment over a period of 3 to 5 years to pay off their creditors. In doing so, most people who file Chapter 13 are able to keep their homes and cars as long as they continue to make payments.
Chapter 11 bankruptcy is similar, but a code written for businesses to receive debt relief through structured repayment, but stay in operation in the meantime. The repayment period is also usually 3 to 5 years for Chapter 11. A specific code applies to family fishermen and farmers. Chapter 12 offers these family owned companies to repay debt while keeping their doors open and protecting them from foreclosure.
The cost for filing Chapter 7 is $306, although it can be waived. Chapter 13 has a fee of $281 and cannot be waived, but paid in installments if necessary. Of course, the attorney fees for bankruptcy are the responsibility of the petitioner.
Official bankruptcy forms for the U.S. Bankruptcy Courts are available at http://www.uscourts.gov/forms/bankruptcy-forms or RecordsFinder.com Court Forms Section.
According to the 2005 Bankruptcy Act, all petitioners for bankruptcy must undergo credit counseling up to 6 months before filing. Credit counseling may help some individuals reach financial goals on their own, while others decide to pursue debt relief through bankruptcy. Those who choose bankruptcy have several additionally steps to follow.
There are District Bankruptcy Courts in four cities in Nevada. Each court shared jurisdiction over all of the counties in the state. The Courts are situated in Elko, Ely, Las Vegas and Reno.