Nevada Bankruptcy Law Key Terms

Understand the basic elements of a bankruptcy before you consider filing

By Michelle Cramer

In a struggling economy, many individuals and business have to explore many possibilities for getting out of debt. One not so popular, but sometimes necessary, option is to file for bankruptcy. Whether this is a consideration for you, or you receive notice that someone owing you money will file, it's important to understand what that will mean for you and your business. Keep the following key terms in mind as you consider moving forward with Nevada bankruptcy proceedings.

Chapter 7

Chapter 7 Bankruptcy is also known as the "liquidation" form of bankruptcy. Basically, under Chapter 7, the trustee sells your nonexempt property and distributes the proceeds to your creditors for repayment of the debt (based upon the percentage of your overall debt that creditor holds).
Try: Visit the Law Offices of Stefanie Clemen for an explanation of Chapter 7 in layman's terms. More details are also available under the Chapter 7 page of the United States Bankruptcy Court District of Nevada website.

Chapter 13

A Chapter 13 bankruptcy is a reallocation of debts for individuals that maintain a steady income. The debtor may keep property and must stick with a repayment plan that has the agreed upon debts paid within three-to-five years.
Try: Bankruptcy Helpers provides a simple explanation of Chapter 13 Bankruptcy, or you can visit the U.S. Bankruptcy Court District of Nevada Chapter 13 page.

Trustee

A bankruptcy trustee, appointed by the U.S. Trustee Program, is responsible for assessing the debts someone filing bankruptcy owes, and, depending on the type of bankruptcy filed, structures and oversees the sale of property and repayment of debts. The trustee is also responsible for protecting the debtor from unnecessary costs.
Try: The Trustee page on the District of Nevada website lists available Nevada bankruptcy trustees. Learn more about the roles of a bankruptcy trustee from Filing for Bankruptcy Online or Idearc Media's Superpages super tips.

CM/ECF

CM/ECF stands for Case Management / Electronic Case Filing service. This is the filing service established by the federal government so that anyone with an Internet connection can file documents online for a bankruptcy case.
Try: Learn more about the Nevada District Court CM/ECF.

NVB-PACER

NVB-PACER stands for Nevada Bankruptcy - Public Access to Court Electronic Records. Anyone with a logon and password (you must have approval) can pay a per-page fee to access Nevada Bankruptcy Court records.
Try: More information is available on the Nevada District Court PACER page.

Discharge

The discharge of a debt in bankruptcy means the bankruptcy court releases the debtor from liability for payment of that particular debt. In a Chapter 7 bankruptcy, discharge typically occurs 60 days after the complaint deadline for creditors and trustees. Discharge is usually four years after the filing date in Chapter 12 or 13 bankruptcies.
Try: Learn more about Discharge in Bankruptcy from the U.S. Bankruptcy Court District of Nevada.