Even with the continued decline in bankruptcies in recent years, Nevada still ranked number two in bankruptcies for 2021. During the pandemic, stimulus payments and financial assistance programs helped numerous people avoid bankruptcy.
However, with the recent concerns about rising inflation, interest rates, and the economy shifting into a recession, the number of bankruptcies could once again start to increase. Should you find yourself in a financial struggle to keep up with debt payments, bankruptcy could be the solution to bring the financial relief you seek.
Contact a bankruptcy attorney in Las Vegas today for a free consultation with a price match guarantee.
How was Nevada ranked number two in bankruptcies?
A study by SmartestDollar.com calculated the number of bankruptcies filed in each state for 2021 for every one million residents. According to their study data, Nevada had 2,308 bankruptcies filed in 2021 for every one million residents. Out of these filings, 2,234 per million were reported as non-business bankruptcies.
What types of bankruptcies were filed in Nevada in 2021?
Out of the 6,995 total Nevada bankruptcy filings in 2021, the majority of these were for Chapter 7 bankruptcy, followed by Chapter 13 bankruptcy, as reported by the American Bankruptcy Institute. The least number of filings were for Chapter 11 bankruptcy.
How many businesses filed bankruptcy in Nevada in 2021?
The total bankruptcy filings by businesses in Nevada were 226, with the following breakdown by type:
- Chapter 7 – 143 Filings
- Chapter 11 – 76 Filings
- Chapter 13 – 7 Filings
How many people filed bankruptcy in Nevada in 2021?
In 2021, people filed a total of 6,769 bankruptcies in Nevada, with the following figures for the type of bankruptcy filed:
- Chapter 7 – 6,030 Filings
- Chapter 11 – 15 Filings
- Chapter 13 – 724 Filings
Why did businesses have fewer bankruptcy filings in Nevada in 2021 than individuals?
The primary reason businesses had fewer bankruptcy filings in Nevada in 2021 is because they have access to different business insurance coverages that can help prevent and avoid bankruptcy. While there is no such thing as business bankruptcy insurance, there are other coverages that help with a wide range of losses, such as:
- Employee Injuries
- Product Recalls
- Customer Injuries
- Business Interruptions
- Lawsuits and General Litigation
Individuals, on the other hand, do not have access to the same types of coverage.
What is the difference between the different types of bankruptcies?
Chapter 7 bankruptcy is the most common type of bankruptcy filed every year. It is a complete liquidation of all assets, which is then used to satisfy any outstanding debts. Any remaining balances left are discharged by the bankruptcy court. As a result, the filer is relieved of all financial responsibility for dischargeable debts.
Chapter 11 bankruptcy applies primarily to businesses to allow them to reorganize while protecting them from creditors. It can involve the creation of debt repayment plans to satisfy debts. Individuals may also qualify for this type of bankruptcy when they operate a small business as a sole proprietorship or partnership.
Chapter 13 bankruptcy is another type of bankruptcy filed by individuals. It allows them to reorganize their debts and create a repayment plan which a court-appointed trustee oversees. Once the payment plan requirements are satisfied, any remaining debts owed are discharged, releasing the individual of any future financial responsibilities.
How do I file for bankruptcy in Las Vegas?
The first thing you need to do is schedule a free consultation with a Nevada bankruptcy attorney in Las Vegas at DeLuca & Associates. During your consultation, our bankruptcy attorney will review your current financial situation and advise you on what types of bankruptcy you are eligible to file.
In addition, we will explain the differences between the types of bankruptcies in greater detail to help you decide which is best. We also provide guidance and assistance on the next steps you need to take to file your Nevada bankruptcy.
Our bankruptcy law firm is pleased to offer a bankruptcy price match guarantee for Chapter 7 filings. We also offer zero-down bankruptcy options to help you get the fresh start you deserve.
To find out what type of bankruptcy is best for you, request a free consultation with our Nevada bankruptcy attorney today.
Sources:
Jones, J. (2022). U.S. States With the Most Bankruptcies.
Bankruptcy Filing Trends in Nevada. (2022).