Before filing a petition for either Chapter 7 or Chapter 13 bankruptcy in Nevada, you, as a debtor, have to go through a credit counseling course. Also, you have to arrange your bankruptcy forms and petitions. After filing a request to declare bankruptcy in the bankruptcy court, you have to experience a debtor education course. This course is essential to obtain a discharge for your debts.
What is a Credit Counseling Course?
If you want to be eligible for either of Chapter 7 or Chapter 13 bankruptcy, then you have to take the services of any reliable agency for a credit counseling course. It is a prerequisite to provide a certificate of course completion to the bankruptcy court. This course should be completed within 180 days prior to filing for bankruptcy. Credit counseling determines if you can avail any other options instead of declaring bankruptcy. It considers your debts, expenses, and income to check if you can sort out your financial obligations without declaring bankruptcy. This course basically affirms that you don’t have any feasible choice except bankruptcy.
What is a Debtor Education Course?
After filing a bankruptcy petition, you will have to take up a debtor education course, which is essential to obtain a discharge. The purpose of this course is to teach you how to handle your money, utilize credit sensibly, and take the maximum advantage of your bankruptcy discharge. Debtor education actually trains you to make appropriate financial choices so as to avoid bankruptcy in the times to come.
Bankruptcy Exemptions in Nevada
The bankruptcy exemptions applicable in Nevada determine the assets and the property you can keep in a Chapter 7 bankruptcy. Additionally, these exemptions determine the amount you have to pay back to your unsecured creditors in a Chapter 13 bankruptcy.
Nevada offers one of the most valuable homestead exemptions in the entire U.S. By filing for bankruptcy in Nevada, you can possibly save almost $550,000 in your home equity. Another special exemption, known as the ‘Nevada Motor Vehicle Exemption’, enables you to protect equity of up to $15,000 in your van, truck, car, or any other type of vehicle.