Chapter 13 Bankruptcy in Nevada: How It Works and Who Qualifies
Compare the benefits, risks, costs, and eligibility requirements of Chapter 13 bankruptcy before deciding whether to file in Nevada.
By Loretta Kilday • Reviewed by the DebtCC Editorial Team
Attorney and Spokesperson
KEY TAKEAWAYS
- Chapter 13 bankruptcy lets you keep your property, such as your home and vehicle, while reorganizing your debts under a court-approved repayment plan.
- It requires a three-to-five-year commitment to monthly payments based on your income, allowable expenses, and total debt.
- An automatic stay immediately goes into effect upon filing, legally halting foreclosure sales, auto repossessions, collection lawsuits, and garnishments.
- To qualify, you must have stable, regular income and fall below federal debt limits, while staying current on tax filings.
Repayment plan length is determined by your state median family income.
Federal fee for Chapter 13, which the court may allow to be paid in installments.
For 1-person household as of April 1, 2026. Above-median income requires a 5-year plan.
Chapter 13 bankruptcy is a federal court reorganization process that lets people with steady income consolidate their debts and repay them over three to five years. In Nevada, it is a key tool for stopping home foreclosure and vehicle repossession while retaining assets that might otherwise be liquidated in Chapter 7.
What Is Chapter 13 Bankruptcy
Often referred to as reorganization or wage earner's bankruptcy, Chapter 13 allows individuals with stable incomes to develop a plan to repay all or part of their debts. Rather than liquidating property, filers keep their assets and use their disposable income to make a single monthly payment to a court-appointed trustee for three to five years.
How it works (example):
Suppose you fall behind on your mortgage payments by $12,000 after an unexpected job disruption. Now that you are employed again, the bank is threatening to foreclose. You do not have $12,000 cash to pay the arrears immediately.
By filing Chapter 13, you stop the foreclosure process. The court allows you to propose a repayment plan where you pay your regular monthly mortgage plus a portion of the $12,000 arrears each month over 60 months. This spreads the delinquency out and keeps you in your home.
During this time, the trustee distributes your payments. Once you successfully complete the plan, the remaining balances on eligible unsecured debts (like credit cards or medical bills) are legally discharged, even if they were only partially repaid under your plan.
Who Should Consider Chapter 13 Bankruptcy
Before filing, it is important to evaluate whether Chapter 13 fits your financial situation. Below is a breakdown of when Chapter 13 is generally the right choice versus when you should consider alternative options.
| Chapter 13 Is Usually the Right Fit If... | Consider Other Options If... |
|---|---|
| You want to keep your home or vehicle and need time to catch up on missed mortgage or auto payments. | You do not have a steady, reliable source of income to fund a multi-year monthly repayment plan. |
| You own valuable assets (like a family home with significant equity) that exceed Nevada's exemption limits and would be sold in Chapter 7. | You qualify for Chapter 7, do not own valuable non-exempt assets, and want to discharge your debts quickly in three to six months. |
| You have non-dischargeable debts—like tax liabilities, child support arrears, or student loans—and want to pay them off over time without creditor harassment. | Your total secured or unsecured debts exceed the federal statutory limits for filing Chapter 13. |
| You co-signed a debt with a loved one and want to shield them from collection actions using the Chapter 13 co-debtor stay. |
Unsure if Chapter 13 is the right path? Consult a bankruptcy lawyer to evaluate your situation. You can also compare a debt management plan or a consolidation loan to examine non-court alternatives.
How Does Chapter 13 Bankruptcy Work
Complete credit counseling
You must complete an approved pre-filing credit counseling course within 180 days before submitting your bankruptcy petition. Use only federally approved agencies.
Gather documents and evaluate assets
Collect detailed financial records, including pay stubs, bank statements, tax returns, bills, and mortgage documents. Draft your monthly budget and check the values of your property.
File your petition and schedules
Submit your bankruptcy petition and financial disclosures to the District of Nevada Bankruptcy Court. This triggers the automatic stay, halting foreclosure, repossession, and collections.
Propose your repayment plan
You must file your proposed three-to-five-year repayment plan within 14 days of filing your petition. The plan specifies how much you will pay the trustee each month and how it is allocated.
Attend the 341 meeting of creditors
Meet with your trustee to answer questions about your income, debts, assets, and proposed plan. Creditors are allowed to attend, but rarely do.
Plan confirmation hearing
A bankruptcy judge reviews your plan at a confirmation hearing. If the plan meets all legal requirements and any objections are resolved, the judge confirms the plan, making it legally binding.
Make monthly plan payments
Make your monthly payments to the trustee on time for three to five years. The trustee distributes the money to creditors according to the confirmed plan.
Complete debtor education and receive discharge
Complete a required debtor education course. Once your plan is finished and all requirements are met, the court grants a discharge, legally wiping out any remaining eligible unsecured debts.
What Your First 30 Days Look Like
Understanding the immediate timeline of a Chapter 13 case can help you prepare. Here is what happens right after you file:
The automatic stay takes effect, legally stopping home foreclosure sales, garnishments, and collection efforts.
You receive court notification of your 341 meeting date. You must file your proposed Chapter 13 plan by day 14.
Your first plan payment is due to the trustee. You must make this payment even if your plan has not yet been confirmed by the judge.
What You Need to File Chapter 13 in Nevada
Gathering your financial documents is critical to ensuring your plan is approved without delays. You must provide the following:
- Proof of income (pay stubs, business records, or pension details) for the past 6 months
- Tax returns for the past 4 tax years (a strict requirement under Chapter 13)
- Bank statements for the past 6 months
- A detailed list of all assets (real estate, vehicles, household goods, bank balances)
- A complete list of creditors, addresses, and the exact amount owed to each
- Mortgage and auto loan agreements detailing monthly payments and current arrearage
- Valuations or appraisals of real estate or vehicles if requested
- Your pre-filing credit counseling certificate
Chapter 13 Bankruptcy Costs and Filing Fees in Nevada
| Cost Item | Amount | Notes |
|---|---|---|
| Court filing fee | $313 | Mandatory federal fee ($235 filing plus $78 administrative fee). Unlike Chapter 7, fee waivers are not available for Chapter 13, but the court may allow payment in installments. |
| Required courses | $10 to $50 per course | Fees for credit counseling (pre-filing) and debtor education (pre-discharge) courses. |
| Trustee fee | Up to 10% | The standing trustee collects a fee (up to 10%) out of each monthly payment you make under the plan. |
| Attorney fees | Varies | Chapter 13 legal fees are higher than Chapter 7 (often $3,000 to $4,500). However, most attorneys will build the majority of their fees into your monthly plan payments. |
Verify current fees on the Nevada Bankruptcy Court fee schedule before filing.
Pros and Cons of Chapter 13 Bankruptcy
| Pros | Cons |
|---|---|
| You keep your property, including your home and car, even if your equity exceeds state exemptions. | You must commit to a strict, court-approved budget for three to five years. |
| The automatic stay halts foreclosure sales and auto repossessions, giving you time to catch up on arrears. | High failure rate; many filers struggle to complete the plan, risking dismissal or conversion. |
| Co-signers are shielded from collection efforts under the co-debtor stay. | Stays on your credit report for up to 7 years from the date of filing. |
| Any remaining eligible unsecured debt is discharged after you complete the repayment plan. | You cannot obtain new credit during the plan without explicit court/trustee approval. |
Do You Qualify for Chapter 13 in Nevada
To qualify for Chapter 13, you must have stable, regular income to fund your monthly payments. In addition, your income determines the required length of your repayment plan. If your income falls below the Nevada median family income, you can propose a 3-year plan. If it exceeds the median, a 5-year plan is required. As of April 1, 2026, the family median income thresholds in Nevada are:
| Household Size | Nevada Median Income Limit |
|---|---|
| 1 person | $72,222 |
| 2 people | $87,914 |
| 3 people | $101,638 |
| 4 people | $114,110 |
| Each additional member | Add $11,100 |
These census family median thresholds are updated about twice a year. Verify the most current figures on the DOJ means testing site before filing.
Chapter 13 Bankruptcy vs. Other Debt Relief Options
Here is how Chapter 13 compares to other debt relief strategies:
| Feature | Chapter 13 Bankruptcy | Debt Settlement | Debt Management |
|---|---|---|---|
| Goal | Reorganize and pay back all or part of your debts over three to five years under court protection. | Negotiate with individual creditors to pay a reduced lump sum, typically after stopping payments. | Repay full principal over three to five years at a reduced interest rate negotiated by a credit counselor. |
| Credit impact | Severe negative impact (remains for 7 years). | Severe negative impact (remains for 7 years). | Moderate negative impact. |
| Timeline | Three to five years. | Two to four years. | Three to five years. |
| Risk level | Court protected, but requires high payment discipline. | Risk of creditor lawsuits during the collection process. | Low risk if payments are made consistently. |
For more details, see our guides on debt management plans, debt settlement, and Chapter 7 bankruptcy in Nevada.
What Debts Can and Cannot Be Discharged in Chapter 13
Debts You Can Eliminate or Reduce
- Unsecured debt like credit cards and medical bills (often repaid at pennies on the dollar and the rest discharged)
- Personal loans, payday loans, and utilities (remaining balances discharged upon plan completion)
- Secured debt arrears (missed payments can be caught up over 3 to 5 years, keeping the asset)
- Older income taxes that meet federal criteria
Debts That Must Be Paid in Full
- Priority debts: Recent income taxes, child support, and alimony arrears must be paid in full (100%) through your repayment plan.
- Student loans: Like Chapter 7, student loans generally survive bankruptcy. They are paid as non-priority unsecured debts during the plan, but any remaining balance survives discharge.
- Secured debt principal: To keep a car or home, you must continue making your regular contract payments outside the plan, or pay the vehicle's value/debt in full through the plan.
What Property Can You Keep in Nevada Chapter 13 Bankruptcy
Unlike Chapter 7, where non-exempt assets can be sold to satisfy creditors, Chapter 13 allows you to keep all of your property. However, Nevada's exemption laws still play a crucial role because they determine the minimum amount you must pay your general unsecured creditors under the "best interest of creditors" test.
To use Nevada's exemption rules, you must have resided in the state for at least 730 days before filing. Married couples filing jointly can double the exemptions on most personal property. Key Nevada exemptions include:
| Property Type | Exemption Limit | NRS Citation | Notes |
|---|---|---|---|
| Home equity (homestead) | Up to $605,000 | NRS 115.010 | Protects equity in your primary home. Does not double for married couples. |
| Vehicle equity | Up to $15,000 per filer | NRS 21.090(1)(f) | One vehicle. Doubles to $30,000 for joint filers. No limit if modified for disability. |
| Household goods | Up to $12,000 | NRS 21.090(1)(b) | Furniture, appliances, electronics. Doubles to $24,000 for married couples. |
| Retirement accounts | Up to $1,000,000 | NRS 21.090(1)(r) / ERISA | Protects qualified accounts (IRA, 401(k), etc.). |
| Wildcard exemption | Up to $10,000 | NRS 21.090(1)(z) | Can be applied to any personal property (cash, bank accounts, stocks, etc.). Doubles for joint filers. |
| Tools of the trade | Up to $10,000 | NRS 21.090(1)(d) | Professional equipment, tools, and inventory used in your trade or occupation. |
| Jewelry | Up to $5,000 | NRS 21.090(1)(a) | Personal jewelry and artwork. Doubles for joint filers. |
Where to File for Chapter 13 Bankruptcy in Nevada
Chapter 13 petitions are filed with the U.S. Bankruptcy Court for the District of Nevada. Where you file and attend hearings depends on your county:
- Southern Division (Las Vegas Courthouse): Serves residents of Clark, Esmeralda, Lincoln, and Nye counties.
- Northern Division (Reno Courthouse): Serves residents of all other Nevada counties.
You must file your case and attend your 341 meeting of creditors in your designated division. Review the local rules and requirements on the official Nevada Bankruptcy Court website before submitting your forms.
Key Risks and Warnings Before You File
- Chapter 13 requires a long-term commitment. You must make your plan payments on time for three to five years. If you suffer a job loss or reduction in income, the plan may fail unless you seek modification.
- A Chapter 13 filing remains on your credit report for up to 7 years from the filing date, making it harder to obtain new loans or competitive interest rates in the short term.
- You cannot acquire new debt—such as an auto loan or a credit card—during the plan without the trustee's or court's permission.
- If you fail to make payments, the court can dismiss your case, which removes the automatic stay and allows creditors to resume collections, or convert your case to Chapter 7.
- Under Nevada law, private landlords can run credit checks and deny rental applications based on a bankruptcy record, as it is not a protected class under NRS 118.020.
- Although co-signers are protected under the co-debtor stay, if your plan does not propose to pay 100% of the co-signed debt, the creditor can request permission from the court to collect the unpaid portion from the co-signer.
"Chapter 13 is a marathon, not a sprint. The most common pitfall is proposing a plan payment that is too high, leaving no breathing room for unexpected expenses like car repairs or medical bills. If your budget is too tight, the plan is at high risk of failing. Working with an attorney to construct a realistic budget and utilizing Nevada's mortgage modification programs can make the difference between a successful discharge and a dismissed case."
— Loretta Kilday, Esq., Attorney and Spokesperson at DebtConsolidationCareHow to Decide if Chapter 13 Bankruptcy Is Right for You
- Evaluate your assets. If you have equity in a home or car that exceeds Nevada's exemption limits, Chapter 13 lets you keep them while Chapter 7 would put them at risk of liquidation.
- Review your mortgage. If you are facing foreclosure, Chapter 13 provides a legal mechanism to cure the default over time and save your home.
- Calculate your budget. Ensure you have a stable source of income that is sufficient to cover your basic living expenses plus a monthly plan payment for three to five years.
- Compare Chapter 13 to other debt relief programs, such as debt management plans or Chapter 7. Understand the difference in credit impact, timeline, and asset protection.
Bottom Line
Chapter 13 bankruptcy is a powerful tool for Nevada residents who have regular income but are struggling with overwhelming debt. It allows you to protect your home and car, stop foreclosure or repossession, and consolidate your payments into a single court-supervised monthly payment.
However, it requires a long-term commitment of three to five years to a strict court budget. If you successfully complete the plan, the court discharges any remaining eligible unsecured debts, giving you a fresh financial start.
Carefully review your budget and consult a bankruptcy lawyer before filing to ensure that Chapter 13 is the right path to financial recovery for you.
Frequently Asked Questions
Disclaimer:
This content is for informational purposes only and is not legal or financial advice. Bankruptcy laws vary by state, and outcomes depend on individual circumstances. Consult a qualified attorney before making any decisions.
Resources
- U.S. Bankruptcy Court, District of Nevada: Chapter 13 filing requirements
- U.S. Bankruptcy Court, District of Nevada: divisions & locations
- U.S. Bankruptcy Court, District of Nevada: fee schedule
- United States Courts: Chapter 13 Bankruptcy Basics
- United States Courts: credit counseling information
- U.S. Trustee Program: Means Testing
- U.S. Trustee Program: Census median family income table (cases filed on or after April 1, 2026)
- Nevada Revised Statutes 21.090, property exempt from execution
- Nevada Revised Statutes 115.010, homestead exemption amount
- Nevada Revised Statutes 118.020, unlawful housing discrimination
- IRS Publication 908, Bankruptcy Tax Guide
Loretta Kilday
Debt Relief Specialist & Spokesperson, DebtCC
Loretta Kilday, Esq., is an accomplished litigator and transactional attorney with more than 30 years of experience across debt collection, bankruptcy, and related matters. DebtConsolidationCare features her as its spokesperson and public voice. She has also trained and mentored junior attorneys and associates. She earned her J.D. from DePaul University College of Law and a B.S. in Finance from DePaul University.
- Loretta Kilday
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