How Common Is Bankruptcy in Nevada?

Bankruptcy in Nevada is incredibly common, but most don’t realize it because of social stigma. The fear of what others might think is one of the most common reasons why people struggling with unmanageable debt avoid seeking the help they so desperately need. If this sounds like you, you’re not alone, and an experienced bankruptcy lawyer in Las Vegas can answer your questions to separate fact from fiction.

Nevada Bankruptcies Have Increased Year Over Year

Since 2022, bankruptcy filings in Nevada have increased by an average of 20% per year, with over 9,200 cases filed in 2025 alone. Of the Nevada cases filed in 2025, only about 4% involved primarily business debt, meaning about 96% were “consumer” cases, or cases filed by individuals to eliminate debt and reorganize their affairs, such as catching up past due payments to save a car or home. The trend appears to be continuing, with approximately 14% more Nevada cases being filed in the first two months of 2026 than during the first two months of 2025.

Bankruptcies Are Increasing Nationwide

In January 2026, multiple sources reported that bankruptcies were on the rise in the United States. CBS News, for example, reported that bankruptcy filings increased by 12% in a single year, noting that well over 530,000 consumers filed for bankruptcy in 2025 alone. This is a considerable portion of the US population, and goes to show that when times get tough, people turn to bankruptcy for relief, regardless of the stigma they feel might be associated with it. It’s impossible to predict how 2026 will play out, but based on available Nevada and National data, one would assume that trend of increasing filings will continue through 2026.

What’s Causing More People to File Bankruptcy?

This is a question economists will undoubtedly debate, and different people have different reasons affecting whether and when to seek bankruptcy relief. As someone considering bankruptcy yourself, you probably have your own specific reasons.

Recent economic issues are not necessarily tied to the current rate of bankruptcy filings. Most economists recognize the average American will hold off for as long as possible before filing for bankruptcy. This means many bankruptcies being filed today are the result of growing financial pressures stemming from last year (or even the year before). On the other hand, something like an unexpected loss of employment can turn a manageable financial situation into an unmanageable one in the blink of an eye if there’s no quick and clear path to recovery.

A recent arrival on the financial scene is the “buy now, pay later” app. These services are designed to encourage spending, often to a reckless extent. These apps are also somewhat controversial, with some arguing that they prey on those who are prone to overspending.

While there are societal issues to be considered, the elephant in the room is inflation. A decrease or “cooling” of inflation today doesn’t mean prices are going down or even staying the same – it may only mean that prices will continue to increase, but at a slower rate than before. For individuals already struggling to pay for basic necessities, inflation can make financial stability impossible if they are also dealing with increasing amounts of debt. A few extra dollars at the grocery store or gas pump can be all it takes for many American families to seek bankruptcy relief.

People File for Bankruptcy Because It Makes Sense

Aside from the economic factors driving increasing bankruptcy filings, most people make the decision because at the end of the day, it just makes sense. Maybe you’ve increased your working hours and cut your expenses to the bone, but you still find yourself coming up short. Bankruptcy can discharge your debts, allowing you to start fresh with control over your financial future. To explore your options, including bankruptcy, consider scheduling a consultation with an attorney.

Can a Bankruptcy Lawyer Help Me?

A bankruptcy lawyer can dispel myths about bankruptcy that might be keeping you from considering it as the tool to address your financial problems. The real fear about bankruptcy is a fear of the unknown. Statistics show more people each year are making the decision to file for bankruptcy, overcoming fear with knowledge and careful guidance from a bankruptcy lawyer. To learn more, contact Larson & Zirzow today and schedule your consultation.

Sources: 

ecf.nvb.uscourts.gov/ecfstatsdash/

uscourts.gov/data-news/data-tables/2025/12/31/bankruptcy-filings/f-2

nvb.uscourts.gov/about-the-court/bankruptcy-statistics/case-filings-annual/

cbsnews.com/news/bankruptcy-filing-rise-consumer-business-epiq/