How to Settle a Debt in Nevada

Legal Expert
Sarah Edwards, BS

Sarah Edwards is a professional researcher and writer specializing in legal content. An Emerson College alumna, she holds a Bachelor of Science in Communication from the prestigious Boston institution.

Edited by Hannah Locklear

Editor at SoloSuit
Hannah Locklear, BA

Hannah Locklear is SoloSuit’s Marketing and Impact Manager. With an educational background in Linguistics, Spanish, and International Development from Brigham Young University, Hannah has also worked as a legal support specialist for several years.

Settling your debt in Nevada can be simple.

Summary: You can settle your debt in Nevada at any stage of the debt lawsuit process. Just follow these three steps: respond to the lawsuit with an Answer before the 20-day deadline, send an initial offer to begin negotiations, and get the settlement agreement in writing. SoloSettle can help you with all three steps and more.

Most people carry some debt, like a personal loan, credit card, or mortgage. You are probably no exception. While you took on the debt intending to repay it, life happens, and you may fall behind. Perhaps you can no longer afford to make the payments, or you lost a primary source of your income.

Regardless, when you stop making regular payments to a creditor, they’ll swoop in to rectify the issue. They’ll call, send you letters, and may contact you via email. If you don’t resume payments, your creditor can charge off your account and sell it to a debt collector. Or they will take legal action against you.

Creditors and debt collectors can pursue debt lawsuits against consumers who don’t repay their loans. A debt lawsuit can result in a judgment, which can lead to wage garnishment, liens on your property, and more.

No one wants to deal with the consequences of a judgment. Resolving the issue before your court date is best. You can do so through debt settlement.

Keep reading to learn how you can settle your debt in Nevada—once and for all.

There are 3 steps to the debt settlement process

If you’ve been sued for a debt in Nevada, follow these three steps to settle it:

Respond to the debt lawsuit with an Answer.
Start negotiations with an offer.
Get the settlement agreement in writing.

Below, we’ll explore each of these steps in detail. Alternatively, you can watch the following video to learn more.

1. Respond to the debt lawsuit with an Answer

The debt lawsuit process begins when a creditor or debt collector files a Complaint against you in your local Nevada court. You’ll receive a copy of the Complaint and a Summons document to appear before a judge.

You have 20 days to respond to a debt lawsuit in Nevada. If you don’t respond on time, you will automatically lose the case when the court orders a default judgment against you at your creditor’s request.

With a default judgment, creditors and collectors can garnish your wages, seize your property, and even freeze your bank account. This is why it’s so important to respond to the case, even if you plan to settle.

Most people don’t realize they must respond to the Complaint to defend themselves from a default judgment. If they don’t file a legal response, known as an Answer, the creditor can ask the court to grant a default judgment against them.

An Answer is your defense to the lawsuit. You’ll indicate why you haven’t been able to pay or why you believe the claim against you doesn’t have merit.

Make the right defense the right way with SoloSuit.

2. Start negotiations with an offer

Your next step is determining how much you can afford in a debt settlement. Examine your savings, along with your upcoming paychecks. If you don’t have much cash, consider selling something you don’t need or getting help from friends and family.

We recommend starting your negotiation with 60% of the total debt. That’s enough to show you’re genuinely interested in resolving the matter.

Your creditor may counter your offer with one of their own. If it’s too much money for you, explain your financial circumstances. They may be willing to provide you with alternative repayment arrangements.

Don’t accept any offer you know you won’t be able to repay. If you do and fail to make your full payment, the creditor will continue the lawsuit, and they’ll likely win the case.

SoloSettle makes the negotiations process easy.

3. Get the settlement agreement in writing

Before transferring any money to your creditor, get the settlement agreement in writing. That way, you ensure that both you and your creditor have a complete understanding of the terms of the deal.

Your settlement agreement should indicate how much you’ll pay your creditor, where you’ll send the payment, and when it’s due. It should also specify that your payment constitutes a total debt settlement. Your creditor will relinquish their rights to collect any more money toward the balance of the loan, and they’ll drop the lawsuit against you.

We recommend that you include room for a notary to sign the contract. Notarizing the agreement ensures there are witnesses to the deal. If your creditor tries to back out of the contract, you’ll have a signed copy as evidence.

Here’s a debt settlement agreement example, with a preview attached below, to give you an idea of what yours should include.

Debt Settlement Agreement

Now that we’ve covered each of these steps, let’s consider an example of how to settle a debt in Nevada.

Example: LVNV Funding is suing Brian, who lives in Nevada, for an unpaid credit card debt of $2,000. Brian uses SoloSuit to respond to the lawsuit with an Answer before Nevada’s deadline, which is 20 days. This gives Brian time to work out a debt settlement plan. After taking a close look at his income, Brian determines he can afford to pay off 75% of the debt right now, or $1,500. He uses SoloSettle to start negotiations with LVNV Funding. He begins with a low offer at 50%, or $1,000. After a few rounds of offers and counteroffers, LVNV agrees to settle for 70% of the debt, or $1,400. LVNV Funding dismisses the case, saving Brian the stress of going to court and thousands of dollars.

What are the debt collection and debt settlement laws in Nevada?

According to Nevada’s Uniform Debt Management Services Act keeps debt settlement companies accountable. It prohibits certain actions by and regulates the licensure of such agencies. According to the Debt Management Services Act, debt settlement companies cannot:

Take a consumer’s money and use it in any other way than to hold it in a trust and eventually settle a debt.
Settle a debt on behalf of a consumer for more than 50 percent of the amount of the debt owed to a creditor, unless agreed upon by both the consumer and creditor.
Claim that payment of a certain amount will settle a certain amount or range of indebtedness.
Claim that enrolling in their program will prevent litigation, garnishment, attachment, repossession, foreclosure, eviction, or loss of employment.
Pretend they are equipped to provide legal advice or services.

Nevada also has multiple state debt collection laws. Under NV Rev Stat § 649.375 (2020), debt collectors cannot take specific actions, including the following:

Harass a debtor’s employer when trying to collect a claim from a consumer.
Charge interest or fees on debts unless they’re legally allowed to.
Advertise a consumer’s debt for sale, or threaten to do so to collect the claim.
Publish the consumer’s debt through any public medium.

On top of this statewide act, Nevada adheres to the federal law concerning debt collection, which is known as the Fair Debt Collection Practices Act (FDCPA). Under the FDCPA, debt collectors cannot:

Attempt to contact a consumer before 8 a.m. or after 9 p.m.
Call a debtor more than seven times over a week.
Contact a consumer repeatedly or let the phone ring off the hook.
Tell a debtor they’ll go to prison if they don’t pay a bill.
Use deceptive means to contact a debtor to collect a debt.

Under the Nevada statute of limitations law NV Rev Stat § 11.190 (2017), there is a four-year limitation for lawsuits concerning oral debts and debts on account. The rule allows six years for written contracts.

What’s the best debt settlement company?

If you’d like help settling your debts, SoloSuit has a few recommendations.

SoloSettle is not like your average debt settlement company. It is a debt settlement service that helps individuals facing debt lawsuits resolve their obligations. Here are some features that make SoloSettle unique.

SoloSettle is a product of SoloSuit, a trusted brand with years of experience helping consumers manage debt. Sophisticated scams that prey on those overwhelmed with debt problems are a real concern. With SoloSuit’s SoloSettle tool, you know you are working with a valid company that has helped thousands of consumers.

SoloSettle works with debts of any size. Other debt settlement companies require a substantial minimum debt before taking you on as a client.

The SoloSettle tool is an active attempt to settle a debt, making it ideal to use if a lawsuit has been filed. The settlement tool is equally helpful to avoid a debt proceeding to a lawsuit.

Settle with SoloSettle

Make an Offer

Other reputable debt settlement companies include:

National Debt Relief first opened in 2009. Since then, it’s helped thousands of individuals resolve their debts through settlement. To qualify for a program with National Debt Relief, you must have at least $10,000 in unsecured debts and agree to make monthly payments. On average, customers save 50% of the total value of their obligations.

Freedom Debt Relief is another popular debt settlement program. Since 2002, the company has helped over 750,000 clients resolve more than $10 billion in debts. If you’re interested in its services, you must have a minimum of $10,000 in debt. Most people complete the program within four years.

New Era Debt Resolutions has been in business for over 23 years, making them a trusted name in debt settlement. They have an A+ rating from the Better Business Bureau (BBB).

Century Support Services has over a decade of experience in helping consumers settle debts and maintains an A+ rating from the BBB. The business has consistently high customer satisfaction scores, but the fees can be steep. Make sure you understand the fee structure before making a final decision.

What are the best ways to contact a creditor?

You can reach your creditor on the phone, via email, or by traditional snail mail.

Email is generally the best contact method since it’s relatively quick and provides a written record. You’ll have time to consider each message before writing your response.

However, phone calls are helpful if you want to speak directly with your creditor. We recommend recording the conversation so you can refer to it later.

Be aware that NV Rev Stat § 200.620 prohibits recording a conversation without explicit consent from both parties. Thus, you’ll need to ask your creditor for permission before recording the call.

FAQs about Nevada debt settlement

Do you have other questions about settling your debt in Nevada? Here are a few of the most common inquiries we hear.

Q. What percentage of debt should I offer to settle?

Try to start your debt negotiations with at least 60% of the debt’s total value. That’s enough for your creditor to strongly weigh whether a lump-sum payment makes sense versus extended uncertain payments. If you can’t afford 60% of the debt, offer what you can and explain your financial circumstances.

Q. How long will it be before a debt becomes uncollectible in Nevada?

Oral debts and debts on account have a four-year statute of limitations, while written obligations have a six-year limit. If your debt passes the time limit, your creditor can no longer pursue legal action against you. However, they can continue reporting your account to the credit bureaus. They can also call you and send you letters.

Q. Can I do my own debt settlement?

Yes, you can negotiate a debt settlement yourself with your creditors. You don’t need the help of a debt settlement service. However, working with an organization frees you from several time-consuming and frustrating tasks and can potentially result in more significant savings.

How to get debt relief in Nevada

SoloSuit has other articles concerning debt relief and debt collections in Nevada. Here are a few you can peruse.

Debt settlement can help you avoid a judgment

If you’re facing a debt lawsuit, settlement is your ticket out of the situation. Seek help from SoloSettle, or attempt to handle the negotiations yourself. Make sure to get your contract in writing before transferring any money to your creditors.

If you need help settling your debt lawsuit before your court date, SoloSuit can assist you.

What is Solo?

Solo makes it easy to resolve debt with debt collectors.

You can use SoloSuit to respond to a debt lawsuit, to send letters to collectors, and even to settle a debt. SoloSuit's Answer service is a step-by-step web-app that asks you all the necessary questions to complete your Answer. Upon completion, we'll have an attorney review your document and we'll file it for you.

SoloSettle can help you contact your debt collector or creditor and negotiate the debt to settle for less, all online. It simplifies and streamlines the process to settling your debt.

No matter where you find yourself in the debt collection process, Solo is here to help you resolve your debt.

>>Read the FastCompany article: Debt Lawsuits Are Complicated: This Website Makes Them Simpler To Navigate

>>Read the NPR story on SoloSuit. (We can help you in all 50 states.)

How to Answer a Summons for debt collection in all 50 states

Here's a list of guides on how to respond to a debt collection lawsuit in each state:

The Ultimate 50 State Guide

Debt collector guides

Are you being contacted by a debt collector? We’re making guides on how to resolve debt with each one.

Arbitration

If the thought of going to court stresses you out, you’re not alone. Many Americans who are sued for credit card debt utilize a Motion to Compel Arbitration to push their case out of court and into arbitration.

Below are some resources on how to use an arbitration clause to your advantage and win a debt lawsuit.

Bankruptcy

Bankruptcy is a great way to legally resolve debt, but it's usually best to consider it as a last resort. Here are some bankruptcy guides to help you decide which debt resolution option is best for you.

Check your case status

Don’t have time to go to your local courthouse to check the status of your case? We’ve created state guides on how to check the status of your case throughout the US, complete with online search tools and court directories.

Credit

Debt has a big impact on your credit. Below is a list of guides on how to repair and improve your credit, even while managing major debt, along with other credit-related resources.

Debt collection FAQs

Find answers to some of our the most commonly-asked questions about debt collection below.

Debt collection documents and templates

If you're dealing with debt, these documents and templates will help you respond, protect your rights, negotiate, and resolve your debts.

Debt relief

We’ve created a specialized guide on how to find debt relief in all 50 states, complete with steps to take to find relief, state-specific resources, and more.

Debt settlement

Debt settlement is one of the most effective ways to resolve a debt and save money. We’ve created state guides on debt settlement. Find out how to settle in your state with a simple click and explore other debt settlement resources below.

Eviction

Facing an eviction? The following guides will help you navigate your situation with confidence.

Federal debt collection laws

Knowing your rights makes it easier to stand up for your rights. Below, we’ve compiled all our articles on federal debt collection laws that protect you from unfair practices.

Legal aid

Helping people find access to justice is at the heart of Solo's misison. If you're dealing with a legal debt issue, the following guides will help you through it.

Medical debt

Having a health challenge is stressful, but dealing with medical debt on top of it is overwhelming. Here are some resources on how to manage medical debt.

Personal finance

Learn how to manage your finances and overcome crushing debt. Check out our personal finance guides below.

State debt collection laws

Debt collection laws vary by state, so we have compiled a guide to each state’s debt collection laws to make it easier for you to stand up for your rights—no matter where you live.

Statute of limitations on debt

Like all debt collection laws, the statute of limitations on debt varies by state. So, we wrote guides on each state’s statutes and more.

Stop collection calls

Do you keep getting calls from an unknown number, only to realize that it’s a debt collector on the other line? If you’ve been called by any of the following numbers, chances are you have collectors coming after you, and we’ll tell you how to stop them.

Wage garnishment

Forgot to respond to your debt lawsuit? The judge may have ordered a default judgment against you, and with a default judgment, debt collectors can garnish your wages. Here are our guides on how to stop wage garnishment in your state, plus other wage garnishment resources.

The Debt Hotline

Hosted by Team Solo, The Debt Hotline breaks down debt and personal finance topics with help from attorneys, financial experts, and industry pros. We respond to real questions to help you navigate debt with knowledge and courage.

Other debt resources

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