Chapter 7 bankruptcy has a number of requirements and standards that must be met in order for someone to be able to file. Income limits are an obvious restriction—if you make a lot of money, it’s assumed that you should be able to handle repaying your debts. On the other hand, those who don’t make as much may not be expected to be capable of managing all the debt they have accrued.
If you’re considering bankruptcy in Nevada or you are curious about what the income limits are, read on to learn more.
In Nevada, anyone who wants to file for Chapter 7 bankruptcy must pass a means test. This means that you have to prove that your income is lower than the state’s listed median income based on household size. For example, based on the table below, if your household has three people, you’ll have to prove that your total combined income is less than $77,536 in order to be eligible to file.
Chapter 7 Income Limits
In Nevada, as of the most recent update in 2022, the income limit for Chapter 7 in the state is as follows:
|Household Size||Annual Income Limit|
There are some instances where you may be able to prove to the courts that you should be allowed to file Chapter 7, even if you can’t meet this requirement. However, it’s rare that it is permitted. Your best option is to work with a reputable bankruptcy lawyer to ensure that you get the best possible filing and outcome.
What If I’m Not Eligible for Chapter 7?
Of course, that leads to the next question for people who need serious financial relief: what happens if they are over the income limit? Typically, that means that unless they can otherwise prove they would be incapable of repaying any part of their debts, they must file for Chapter 13 bankruptcy.
Under Chapter 13, debtors must make an arrangement to repay some or all of their debts over a three to five-year period. For some people, that may not be feasible, even if they technically earn beyond the income limit. Again, this is why it’s helpful to have an experienced bankruptcy lawyer on your side.
Contact a Bankruptcy Lawyer for Your Nevada Bankruptcy Filing Needs
Bankruptcy is a complex process that involves a lot of paperwork, proof, and legal hurdles to overcome. While some people manage to navigate it on their own without much struggle, there’s definitely something to be said for hiring a Nevada bankruptcy lawyer to file the case on your behalf. You can simply provide the paperwork, sign the documents, and show up for your hearing when they tell you it’s time.
To learn more about filing Chapter 7 bankruptcy and income limits in Nevada, reach out to an experienced attorney today. At DeLuca Associates, we’ll provide you with a free consultation to get started.