How to File Chapter Seven in Nevada
- 1). Pass the means test. Because a debtor can discharge most debts under Chapter 7, the debtor must qualify by passing the means test. To pass this test, the debtor's average monthly income in the six months preceding the bankruptcy petition must not exceed the median income in Nevada. If the debtor's income is too high, the debtor must take the second part of the test. If the debtor does not have any disposable income left over after paying allowed expenses such as utilities, a car payment and rent or a mortgage, the debtor passes the means test.
- 2). Attend credit counseling. Prior to filing for Chapter 7 in Nevada, a petitioner must attend credit counseling with a court-approved agency. A credit-counseling agency will advise the filer regarding the consequences of bankruptcy and evaluate options. The debtor must obtain credit counseling at least 180 days before filing.
- 3). File a bankruptcy petition. The debtor initiates the bankruptcy by filing Form B1, Voluntary Petition Form and Exhibit D, Individual Debtor's Statement of Compliance with Credit Counseling Requirement. The debtor has the option of filing in person at the Reno or Las Vegas location or online at the Nevada bankruptcy court website. Once the debtor files the petition, an automatic stay prohibits creditors from collecting on the debt, foreclosing on a home or enforcing a judgment.
- 4). File applicable schedules. Within 14 days of the initial filing, the debtor must file schedules that detail the debtor's assets, liabilities and creditors and Form B7, Statement of Financial Affairs. Schedules include Schedule A (Real Property), Schedule D (Creditors Holding Secured Claims) and Schedule I (Current Income of Debtor).
- 5). Pay the filing fee. The cost of filing for Chapter 7 is $299 (as of 2011). If the debtor is unable to pay the entire amount in one lump sum, the debtor can split up the payment into four installments ($50 within 30 days of filing, $50 within 60 days of filing, $100 within 90 days of filing and $99 within 120 days of filing).
- 6). Attend the meeting of creditors. In attendance at the meeting of creditors will be the bankruptcy trustee, creditors, and the petitioner. In most cases, creditors will not attend. The trustee and the creditor may ask the petitioner questions about the information included on the petition. Seven days before the meeting, the petitioner must provide the trustee with a copy of his most recent tax return.
- 7). Attend a financial management course. Before the bankruptcy court grants a discharge, the petitioner must attend an approved financial management course. The debtor must file a Certification of Completion of Instructional Course Concerning Financial Management at least 45 days after the meeting of creditors. The bankruptcy court will notify the debtor of the discharge via mail approximately two months after the creditors' meeting.
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