Filing for bankruptcy isn't a moral failure — it's a tool. Congress wrote it into federal law precisely so that families and small businesses overwhelmed by debt have a legal way to stop the bleeding and rebuild. The question isn't whether you "deserve" to file. The question is whether it's the right tool for your situation.
The two main chapters for individuals
Chapter 7 — liquidation
The classic "fresh start." Most unsecured debt — credit cards, medical bills, personal loans — gets wiped out in a matter of months. In exchange, a trustee can liquidate non-exempt assets to pay creditors. Nevada's exemption laws are generous, and most filers don't actually lose property they care about, but eligibility depends on income (the "means test").
Chapter 13 — reorganization
A 3–5 year repayment plan. You keep your property, including your home if you're behind on the mortgage, and repay creditors a portion of what you owe out of future income. Good for people with steady income who need to catch up on a mortgage or car loan, or who don't qualify for Chapter 7.
The automatic stay — immediate protection
The moment you file, federal law triggers an automatic stay that stops most collection activity in its tracks. That means:
- Wage garnishments stop
- Foreclosure sales pause
- Repossessions pause
- Collection calls and lawsuits stop
The stay isn't permanent, and there are exceptions (child support, some taxes, criminal matters). But it buys breathing room — sometimes just enough to negotiate, sometimes enough to discharge the debt entirely.
What bankruptcy doesn't fix
- Most student loans (rare exceptions for undue hardship)
- Recent income taxes
- Child support and alimony
- Debts incurred through fraud
- Most criminal fines and restitution
If most of your debt falls in these categories, bankruptcy may not be the right answer. We'll tell you that honestly.
What to bring to the consultation
- Recent pay stubs (last 6 months if you have them)
- List of debts — creditor names and approximate balances
- Tax returns for the last two years
- Bank statements (last 3 months)
- A list of property you own and any liens against it
You don't need any of this to make the first call. We can start with a conversation.