Nevada Leads Nation in Bankruptcy Filings

While bankruptcy filings are up throughout country, the Administrative Office of the U.S. Courts is reporting that Nevada leads the nation in total bankruptcy filings.

Bankruptcy filings in Nevada have increased 64.5% from the previous year, which equals 27,560 filings.

Of the 27,560 filings:

• 881 were business filings.
• 26,000 were personal bankruptcy filings, the bulk of which were filed under Chapter 7.  In Chapter 7 bankruptcy, a debtor's non-secured assets are liquidated and the proceeds are distributed to the debtor's creditors. This is the most popular form of personal bankruptcy, as it eliminates the debtor's debts rather than restructuring them into a repayment plan.

In addition to an overall increase in bankruptcy filings, more specifically there has also been an increase in Chapter 11 filings. Under Chapter 11, a business or organization can seek protection from creditors while it reorganizes its debts and financial structure.

Nevada is also leading the nation in credit card delinquencies, with a past-due rate of 1.98% compared with 1.1% nationally.

If you are struggling to pay off your debts, and are interested in learning more about filing for bankruptcy, click here to find a bankruptcy attorney in your state!