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Chapter 13 bankruptcy lets Nevada residents keep assets (including homes) while repaying debts over a 3–5 year court-approved plan. You must have regular income and unsecured debts under $465,275 and secured debts under $1,395,875 (2024 limits). Nevada's homestead exemption (NRS 115.010) can protect up to $605,000 in home equity. Chapter 13 is often used to stop foreclosure, catch up on mortgage arrears, and save a car. Consult a Las Vegas bankruptcy attorney to determine if Chapter 13 is right for your situation.
Chapter 13 vs. Chapter 7: Which Is Right for You?
Chapter 7 bankruptcy liquidates non-exempt assets to discharge most debts immediately — but you may lose property and must pass a means test. Chapter 13 is a reorganization — you keep your assets and repay creditors over 3–5 years through a court-approved plan. Chapter 13 is often the better choice if you:
- Own a home with equity you want to protect
- Are behind on mortgage payments and want to stop foreclosure
- Have a car loan you want to keep and restructure
- Have income too high to qualify for Chapter 7
- Have non-dischargeable debts (like certain taxes) you want to pay off over time
Chapter 13 Eligibility Requirements
To file Chapter 13 in the District of Nevada, you must meet the following requirements:
| Requirement | 2024 Limits / Details |
|---|---|
| Unsecured debt limit | Less than $465,275 |
| Secured debt limit | Less than $1,395,875 |
| Income requirement | Regular income (wages, self-employment, Social Security, etc.) |
| Prior bankruptcy | No Chapter 7 discharge in past 4 years; no Chapter 13 discharge in past 2 years |
| Tax returns | Must be current on filing all required federal and state tax returns |
Nevada Homestead Exemption — NRS 115.010
Nevada protects up to $605,000 in home equity from creditors. In Chapter 13, you keep your home as long as you make plan payments and current mortgage payments. This is one of the most powerful exemptions in the country for Las Vegas homeowners.
The Chapter 13 Repayment Plan
Within 14 days of filing, you must submit a proposed repayment plan to the court. The plan runs 3 years (if your income is below the state median) or 5 years (if above). Your monthly plan payment depends on:
- Your disposable income after allowed living expenses
- The value of non-exempt assets (unsecured creditors must receive at least this)
- Priority debts (taxes, domestic support obligations) which must be paid in full
- Mortgage arrears (must be paid in full over the plan)
A Chapter 13 trustee is appointed in Las Vegas to review your plan, receive your monthly payments, and distribute them to creditors. The trustee may object to your plan if it doesn't meet legal requirements. Your attorney negotiates with the trustee and creditors to get the plan confirmed by the court.
Stopping Foreclosure with Chapter 13
One of the most common reasons Las Vegas homeowners file Chapter 13 is to stop foreclosure. The moment you file, an automatic stay goes into effect — all collection actions, including foreclosure sales, must immediately halt. Your Chapter 13 plan then allows you to catch up on mortgage arrears over the plan period while continuing current payments.
Timing Is Critical
The automatic stay stops a foreclosure sale the moment it's filed — even if the sale is scheduled for the same day. However, if you file too late, the lender may have already transferred title. If you're facing foreclosure in Las Vegas, contact a bankruptcy attorney immediately to evaluate your timeline.
Nevada Exemptions in Chapter 13
Nevada allows you to keep all of your exempt property in Chapter 13. Key Nevada exemptions include:
- Homestead (NRS 115.010): up to $605,000 in home equity
- Vehicle (NRS 21.090(1)(f)): up to $15,000 per vehicle
- Wages (NRS 21.090(1)(g)): 75% of disposable weekly earnings
- Retirement accounts (NRS 21.090(1)(r)): 401(k), IRA, pension — fully exempt
- Household goods (NRS 21.090(1)(b)): up to $12,000
- Health aids (NRS 21.090(1)(c)): fully exempt
What Happens After You Complete the Plan
After successfully completing all plan payments (typically 36–60 months), the court enters a Chapter 13 discharge. This discharges most remaining unsecured debts, including credit cards and medical bills. Unlike Chapter 7, Chapter 13 can also discharge certain debts that survive Chapter 7, such as marital property settlement debts and some tax obligations.
Your credit report will show the Chapter 13 for 7 years from the filing date. However, many people begin rebuilding credit within 1–2 years of filing by obtaining secured credit cards and making on-time payments.
Frequently Asked Questions
A Chapter 13 repayment plan runs 3 years if your income is below Nevada's median household income, or 5 years if your income is above the median. After successfully completing all plan payments, you receive a discharge. The total time from filing to discharge is typically 3–5 years. During this entire period you have court protection from creditors.
Yes — keeping your home is one of the primary reasons people choose Chapter 13. Nevada's homestead exemption (NRS 115.010) protects up to $605,000 in home equity. In Chapter 13, you catch up on any mortgage arrears over the plan period while continuing to make current mortgage payments. As long as you complete the plan and stay current on your mortgage, you keep your home.
As of 2024, to qualify for Chapter 13 you must have unsecured debts (credit cards, medical bills, personal loans) of less than $465,275 and secured debts (mortgages, car loans) of less than $1,395,875. These limits are adjusted periodically. If your debts exceed these limits, you may need to explore Chapter 11 bankruptcy instead.
Yes. When you file Chapter 13, an automatic stay immediately halts all collection actions including foreclosure proceedings. Even if a foreclosure sale is scheduled for the same day you file, the automatic stay stops it. Your Chapter 13 plan then allows you to pay back the mortgage arrears over 3–5 years. Timing is critical — contact a bankruptcy attorney before the sale date.
Chapter 13 bankruptcy will appear on your credit report for 7 years from the filing date and will initially cause a significant drop in your credit score. However, many people begin rebuilding credit during the plan period. After receiving your discharge and following healthy credit practices — secured credit cards, on-time payments, low utilization — many filers achieve good credit scores within 2–4 years after discharge.