How long does bankruptcy take in Nevada?
If you live in Nevada and are thinking about filing for bankruptcy, you may be curious how long it will take. Individual bankruptcy cases may have modest variances, but the procedure is predictable and consistent across states. The length of time it takes to emerge from bankruptcy in Nevada is mainly determined by the kind of bankruptcy you file and whether or not any creditors object to or petition the court to prevent particular debts from being dismissed.
To identify the time needed to file for bankruptcy in Nevada, you must first have a thorough grasp of the state’s bankruptcy laws and the several processes that must be completed.
Nevada’s bankruptcy procedures
To begin the bankruptcy procedure in Nevada, one must first file with the U.S. Bankruptcy Courts for the District of Nevada in both Las Vegas and Reno. Chapter 7 and Chapter 13 bankruptcy are the most common options for individuals.
If any, the nonexempt assets of the debtor are collected and liquidated by a court-appointed bankruptcy trustee in Chapter 7 bankruptcy to pay the debtor’s creditors. All outstanding obligations of the debtor are dismissed, erasing their responsibility. In Chapter 13, a debtor does not have to surrender any of his assets. Instead, he gets into a three- to a five-year repayment plan. Unpaid obligations are dismissed, just as they are in Chapter 7.
Steps that have been added
Following filing a bankruptcy petition, a debtor is required to take a series of actions. A debtor filing for bankruptcy under Chapter 7 must also file documents identifying the exemptions he wishes to claim—the types of property he may keep from being seized, up to a specific amount. Unlike other states, Nevada debtors can only claim state exemptions in bankruptcy.
One of the exemptions that are often applied is the homestead exemption, which shields a debtor’s equity of up to $550,000. However, to qualify for this exemption, debtors must have lived in the state for forty months before the application deadline. It is a strategy to stop people from moving to Nevada to claim this exemption in their bankruptcy cases which are not residents of the state. Debtors must provide the court with a repayment plan within 14 days after filing a petition for Chapter 13 bankruptcy protection.
How long would it take?
It all comes down to the sort of chapter you sent. Chapter 13 bankruptcy may take anywhere from three to five years, and as you may have guessed, it involves making monthly payments to the bankruptcy court. In most Chapter 7 cases, no motions are filed, and creditors get no assets to distribute.
Consequently, when the 60-day objection period expires, debtors generally get a discharge within three to six months. Confirmation hearings must be held no later than 45 days following the 341 meeting in Chapter 13 cases to see whether the repayment plan is realistic. Payments begin after the plan is approved by a judge. Debtors who miss payments must develop a new plan to make them up. When a debtor has finished his repayment plan within three to five years, they are often awarded a discharge.