//Chapter 7 Most Filed Bankrtupcy

Chapter 7 Most Filed Bankrtupcy

Nevada is not different from the rest of the United States.  The single most common type of bankruptcy filed in the United States and in Nevada is chapter 7 bankruptcy.  Another name for ch 7 bankruptcy is a “straight bankruptcy” or a “liquidation bankruptcy”.  Chapter 7 bankruptcy is the type or chapter most people think about when the word “bankruptcy” comes to mind.
Chart showing bankruptcy filings in the US
Chapter 7 bankruptcy in Nevada is used by individuals, partnerships, and corporations who have no hope for repairing their financial situation. A Henderson Chapter 7 bankruptcy liquidates debtor’s estate under the rules of the Bankruptcy Code..
Keep in mind, certain debts cannot be discharged in a Chapter 7 bankruptcy.  Some of the debts that aren’t able to be discharged in a Nevada Chapter 7 Bankruptcy include:
  • Child support
  • Fraudulent debts
  • Debts for willful and malicious injury
  • Certain types of taxes
  • Most student loans
  • Alimony or spousal support
In Nevada, over 80% of all bankruptcies filed were chapter 7 bankruptcies.  Approximately 18% of all Nevada bankruptcies were chapter 13 bankruptcy filings.  The other approximate 2% of bankruptcy filings in Nevada were chapter 11 bankruptcy filings by businesses.