Deciding Between Chapter 7 and Chapter 13 in Las Vegas

Falling behind on bills wears on a person in a way that is hard to explain to anyone who has not lived it. The phone rings during dinner. Mail stacks up on the counter, unopened. You may already suspect that bankruptcy is the answer and still feel uneasy about what it would mean for your home, your car, and your paycheck.

Most people in Las Vegas end up choosing between two paths. Chapter 7 clears most unsecured debt in roughly four to six months, provided your income passes what is called the means test. Chapter 13 sets up a repayment plan across three to five years instead, which often makes more sense when your income is higher or when you are trying to hold on to a house or a car you have fallen behind on. Which one fits depends on your income, your debts, and what you own. This guide walks through both in plain English, so you know what to expect before you sit down with a chapter 7 bankruptcy lawyer in Las Vegas.

What Chapter 7 Bankruptcy Does

Chapter 7 is often called liquidation bankruptcy, a name that alarms people and gives most of them the wrong idea. In practice, the majority of filers do not lose anything at all. Nevada exemption laws protect a set amount of equity in your home, your vehicle, and your personal belongings, and most people who file keep everything they own.

To qualify, you need to pass the means test. This compares your household income to the Nevada median for a family of your size. If your income falls below that median, you generally qualify. If it sits above, the court looks more closely at your expenses to see whether there is money left over that could reasonably go to creditors.

The moment you file, an automatic stay takes effect. This is the part clients tend to feel right away. The collection calls stop, lawsuits pause, and wage garnishment ends. A bankruptcy trustee then reviews your case, and if you have no non-exempt assets, which is true for most filers, there is nothing for the trustee to sell.

Chapter 7 typically discharges:

• Credit card balances  
• Medical bills  
• Personal loans  
• Old utility bills  
• Most other unsecured debt  

It usually does not discharge:

• Most student loans  
• Recent tax debt  
• Child support and alimony  
• Court fines  

Most Chapter 7 cases in Nevada close within four to six months, measured from the day you file to the day your debt is discharged.

What Chapter 13 Bankruptcy Does

Chapter 13 works on a different principle. Rather than wiping debt away at the start, you propose a repayment plan and pay back some or all of what you owe over three to five years. Your payment is calculated from your income and your reasonable expenses, not from the full balance sitting in the file.

People generally turn to Chapter 13 for one of these reasons:

• Their income is too high to pass the Chapter 7 means test  
• They have fallen behind on a mortgage or car payment and want to catch up without losing the property  
• They own non-exempt assets they would rather protect  
• They filed Chapter 7 recently and are not yet eligible to file again  

Chapter 13 triggers the same automatic stay the moment the case is filed. That stay halts wage garnishment, foreclosure, and repossession while your plan is in place. When you finish the plan, remaining eligible debt is discharged.

Chapter 7 and Chapter 13 Side by Side

It helps to see the two next to each other:

• Timeline: Chapter 7 usually runs four to six months, while Chapter 13 runs three to five years  
• Eligibility: Chapter 7 requires passing the means test, while Chapter 13 requires steady income to fund a plan  
• What happens to the debt: Chapter 7 discharges most unsecured debt quickly, while Chapter 13 repays part of it through the plan and discharges the remaining balance at the end  
• Property: most Chapter 7 filers keep everything under Nevada exemptions, while Chapter 13 lets you catch up on a house or car and keep it  
• Credit report: a Chapter 7 stays for up to ten years, and a Chapter 13 stays for up to seven  
• Best suited to: Chapter 7 fits lower income and few assets when you want a fast fresh start, and Chapter 13 fits higher income, secured debt you have fallen behind on, and property you intend to keep  

Which One Is Right for Your Situation in Nevada

There is no single right answer, and anyone who hands you one before looking at your finances is guessing. In practice it comes down to three questions:

• Does your income pass the means test? If you are under the Nevada median for your household size, Chapter 7 is usually available to you  
• Are you behind on a house or car payment you want to keep? Chapter 13 gives you a structured way to catch up instead of losing it  
• Do you have assets above the Nevada exemption limits? If so, Chapter 13 can protect what Chapter 7 might not  

A short conversation with a bankruptcy lawyer is the fastest way to get a real answer, because the answer genuinely turns on your income, your debts, and what you own. No one can tell you which chapter fits, or promise a particular outcome, without reviewing your situation first.

Affordable, Flat-Fee Bankruptcy Help

Many people wait far longer than they should because they assume a lawyer is out of reach. It is worth saying plainly that you can probably afford this. Half Price Lawyers offers flat-fee bankruptcy representation, which means the price is set and explained to you before you commit to anything.

A free consultation walks through your income, your debts, and what you are hoping for, and it ends with a clear answer about which chapter fits your situation. There is no pressure and no surprise fee waiting at the end. Most people tell us afterward that the hardest part was picking up the phone.

Frequently Asked Questions

What is the income limit for Chapter 7 bankruptcy in Nevada?

There is no fixed dollar limit. The means test compares your household income to the Nevada median for a family of your size. If you are under that median, you generally qualify for Chapter 7. If you are over it, the court reviews your allowed expenses to see whether Chapter 7 still fits.

Does Chapter 13 stop wage garnishment?

Yes. Filing Chapter 13, like filing Chapter 7, triggers an automatic stay. That stay stops wage garnishment, collection calls, and most lawsuits as soon as your case is filed, while your repayment plan is worked out.

How long does bankruptcy stay on your credit report?

A Chapter 7 bankruptcy stays on your credit report for up to ten years, and a Chapter 13 stays for up to seven. Many people see their score begin to recover within a year or two as they rebuild.

Can I keep my house if I file Chapter 7 in Las Vegas?

In most cases, yes. The Nevada homestead exemption protects a set amount of equity in your primary residence. If you are current on your mortgage and your equity falls within the exemption, Chapter 7 usually does not affect your home.

Can I afford to file bankruptcy in Las Vegas?

Yes. Half Price Lawyers uses flat-fee pricing for bankruptcy cases, so you know the cost before you commit, with no surprise charges later. A free consultation reviews your situation and lays out your options, so cost never has to be the reason you go without help.

Take the First Step Toward a Fresh Start

If debt has you caught between Chapter 7 and Chapter 13, you do not have to sort it out alone. At Half Price Lawyers, we review your income, your debts, and what you own, and we explain your options in plain terms with a chapter 7 bankruptcy lawyer in Las Vegas. Reach out to us today through our contact page to schedule a free consultation and get a straight answer about which path fits your situation.