The Bankruptcy process is not a simple one, and for good reason. The filer is asking the Nevada Bankruptcy Court to clear the debts that the filer originally committed to pay. In most cases, this was credit was extended in good faith. The elimination of these debts by the Court can cause significant financial damage to the person(s) or entities owed money. That being said, it would be unfair if the laws made it simple to file for Bankruptcy and circumvent these unpaid debts.

You will find a general outline of the steps and procedures required in most Bankruptcy cases at our filing page. In many situations, additional administrative steps may be required.



Determine which Chapter of the Bankruptcy code for which you qualify

The first step in the Bankruptcy process is to determine which type of filing should be made: Chapter 13 or Chapter 7.

The provisions of Chapter 13 have advantages to some persons who are considering Bankruptcy. For example, if you have more equity in a home than can be protected with the exemption for real estate in a Chapter 7 case - the use of the Chapter 13 case could allow you to keep the home. Certain debts which are not dischargeable in Chapter 7, such as those based on fraud, may be discharged if you were to successfully complete a Chapter 13 plan. Those who do not qualify for filing Chapter 7 as a result of income in excess of that permitted by the "means test" will be required to file a Chapter 13 case.

Chapter 7 is often appropriate for those whose mortgage and auto loan payments are current, in which there is little or no equity in these assets, and there is no money left from your monthly paycheck to pay your bills (such as credit cards and signature loans). Chapter 7 allows a fresh start - often while keeping most or all of your property.