Nevada Debt Relief
Nevada Credit Card Debt law carries a 4-year time limit for creditors filing suit over unpaid open-ended debt, such as Credit Cards. This limit, known as the Statute of Limitations (SOL), begins on the last payment due date that was not fulfilled. Unlike most states, the New York SOL does not start over upon subsequent partial payments made by the debtor. An answer to summons must be filed within 20 days or the debtor will face default judgment in favor of the creditor. Answers should be sent by certified mail to ensure proper delivery.
Nevada creditors are given 6 years to collect the debt, but the state allows the judgment to be renewed if needed. Recording the judgment in the appropriate county where a debtor’s real property is located institutes a lien against the property. The lien remains in effect 6 years and may be renewed, accruing interest at the rate of the contract or at a 9% rate set annually by the state. A homestead exemption is allowed up to $125,000 in equity. Personal assets may also be levied.
Wages may be garnished, but no more that 25% or those wages in excess of 30 times the federal hourly wage for the week. Garnishments are limited to 120 days and must be renewed to continue.
Nevada recognizes contracts containing “confession of judgment” clauses. These contracts have the same result as a debt judgment ruled by the court. However, the confession must be confirmed under oath by the debtor.
Debt Settlement is the optimal solution for those facing a debt judgment. Rather than letting the court decide when and how much the debtor must pay, Debt Settlement allows for interest free payments of the debt under terms agreed to by both parties.