Thanks to a variety of factors, including the end to the housing crisis and changes in American health care laws, the number of bankruptcy filings has fallen significantly in the previous ten years. However, these improving numbers don't change the fact that thousands of Nevadans file for bankruptcy protection each year. That was certainly the case in 2018.
Nevada Bankruptcy Filings in 2018
In total, 2018 saw 8,872 bankruptcy filings in the State of Nevada. The vast majority of those – 8,615 – were for individual non-business filings. Only 257 of the bankruptcies filed in Nevada in 2018 were business filings.
Of those nonbusiness filings, the vast majority were under Chapter 7 of the bankruptcy code. In total, 6,774 of the Nevada filings in 2018 were individuals filing for Chapter 7 protection. In contrast, 1,740 individuals filed for Chapter 13 protection. Finally, there were 92 non-business Chapter 11 filings, which is significantly higher than most other states see. For example, the State of Illinois only had a total of 18 individual Chapter 11 filings during the same time period. In fact, there were more individual Chapter 11 filings than business Chapter 11 filings in 2018.
When it comes to business filings, most Nevada companies file up under Chapter 7. In total, there were 151 Chapter 7 filings and 90 filings under Chapter 11. Only 12 companies filed for Chapter 13 protection in Nevada. There were no bankruptcy petitions filed under Chapter 12.
What type of bankruptcy is best?
These statistics prove that Nevada individuals file for bankruptcy under a variety of methods. And while an unusual number of Nevada residents filed under Chapter 11 in 2018, the bulk of filers each year opt for protection under either Chapter 7 or Chapter 13.
Chapter 7 bankruptcy is also known as a liquidation bankruptcy. This type of bankruptcy is only available if you have limited assets, and it provides a fresh start financially in a relatively short amount of time. In a Chapter 7 case, the bankruptcy trustee can liquidate some of your assets in an attempt to pay your creditors. Once this process is done, the debt you have remaining is typically discharged. And if you have an experienced Nevada bankruptcy attorney, you may be able to claim exemptions for most of your property.
A Chapter 13 bankruptcy is best if you have secured assets that you intend to hold onto after your bankruptcy. Unlike a Chapter 7, a Chapter 13 case can take years and involves agreeing to a plan that will require you to pay back a lot of your debts to your creditors. While it may not result in a large-scale discharge of your debt, it will give you a path to hold onto your secured assets like your home or your car.
No matter your financial situation, it is important that you discuss your options with a Nevada bankruptcy attorney before you declare bankruptcy. To schedule your free consultation, contact the experienced Nevada bankruptcy attorneys at Vohwinkel Law today.