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 SoloSuit?

SoloSuit makes it easy to fight 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.

>>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 your state

Here's a list of guides for other states.

All 50 states.

Guides on how to beat every debt collector

Being sued by a different debt collector? Were making guides on how to beat each one.

We have answers

Join our community of over 40,000 people.

You can ask your questions on the SoloSuit forum and the community will help you out. Whether you need help now are are just look for support, we're here for you.

Get Started

Win against credit card companies

Is your credit card company suing you? Learn how you can beat each one.

Going to Court for Credit Card Debt — Key Tips

How to Negotiate Credit Card Debts

How to Settle a Credit Card Debt Lawsuit — Ultimate Guide

Get answers to these FAQs

Need more info on statutes of limitations? Read our 50-state guide.

Why do debt collectors block their phone numbers?

How long do debt collectors take to respond to debt validation letters?

What are the biggest debt collector companies in the US?

Is Zombie Debt Still a Problem in 2019?

SoloSuit FAQ

If a car is repossessed, do I still owe the debt?

Is Portfolio Recovery Associates Legit?

Is There a Judgment Against Me Without my Knowledge?

Should I File Bankruptcy Before or After a Judgment?

What is a default judgment?— What do I do?

Summoned to Court for Medical Bills — What Do I Do?

What Happens If Someone Sues You and You Have No Money?

What Happens If You Never Answer Debt Collectors?

What Happens When a Debt Is Sold to a Collection Agency

What is a Stipulated Judgment?

What is the Deadline for a Defendants Answer to Avoid a Default Judgment?

Can a Judgement Creditor Take my Car?

Can I Settle a Debt After Being Served?

Can I Stop Wage Garnishment?

Can You Appeal a Default Judgement?

Do I Need a Debt Collection Defense Attorney?

Do I Need a Payday Loans Lawyer?

Do student loans go away after 7 years? — Student Loan Debt Guide

Am I Responsible for My Spouses Medical Debt?

Should I Marry Someone With Debt?

Can a Debt Collector Leave a Voicemail?

How Does Debt Assignment Work?

What Happens If a Defendant Does Not Pay a Judgment?

How Does Debt Assignment Work?

Can You Serve Someone with a Collections Lawsuit at Their Work?

What Is a Warrant in Debt?

How Many Times Can a Judgment be Renewed in Oklahoma?

Can an Eviction Be Reversed?

Does Debt Consolidation Have Risks?

What Happens If You Avoid Getting Served Court Papers?

Does Student Debt Die With You?

Can Debt Collectors Call You at Work in Texas?

How Much Do You Have to Be in Debt to File for Chapter 7?

What Is the Statute of Limitations on Debt in Washington?

How Long Does a Judgment Last?

Can Private Disability Payments Be Garnished?

Can Debt Collectors Call From Local Numbers?

Does the Fair Credit Reporting Act Work in Florida?

The Truth: Should You Never Pay a Debt Collection Agency?

Should You Communicate with a Debt Collector in Writing or by Telephone?

Do I Need a Debt Negotiator?

What Happens After a Motion for Default Is Filed?

Can a Process Server Leave a Summons Taped to My Door?

Learn More With These Additional Resources:

Need help managing your finances? Check out these resources.

How to Make a Debt Validation Letter - The Ultimate Guide

How to Make a Motion to Compel Arbitration Without an Attorney

How to Stop Wage Garnishment — Everything You Need to Know

How to File an FDCPA Complaint Against Your Debt Collector (Ultimate Guide)

Defending Yourself in Court Against a Debt Collector

Tips on you can to file an FDCPA lawsuit against a debt collection agency

Advice on how to answer a summons for debt collection.

Effective strategies for how to get back on track after a debt lawsuit

New Hampshire Statute of Limitations on Debt

Sample Cease and Desist Letter Against Debt Collectors

The Ultimate Guide to Responding to a Debt Collection Lawsuit in Utah

West Virginia Statute of Limitations on Debt

What debt collectors cannot do — FDCPA explained

Defending Yourself in Court Against Debt Collector

How to Liquidate Debt

Arkansas Statute of Limitations on Debt

Youre Drowning in Debt — Heres How to Swim

Help! Im Being Sued by My Debt Collector

How to Make a Motion to Vacate Judgment

How to Answer Summons for Debt Collection in Vermont

North Dakota Statute of Limitations on Debt

ClearPoint Debt Management Review

Indiana Statute of Limitations on Debt

Oregon Eviction Laws - What They Say

CuraDebt Debt Settlement Review

How to Write a Re-Aging Debt Letter

How to Appear in Court by Phone

How to Use the Doctrine of Unclean Hands

Debt Consolidation in Eugene, Oregon

Summoned to Court for Medical Bills? What to Do Next

How to Make a Debt Settlement Agreement

Received a 3-Day Eviction Notice? Heres What to Do

How to Answer a Lawsuit for Debt Collection

Tips for Leaving the Country With Unpaid Credit Card Debt

Kansas Statute of Limitations on Debt Collection

How to File in Small Claims Court in Iowa

How to File a Civil Answer in Kings County Supreme Court

Roseland Associates Debt Consolidation Review

How to Stop a Garnishment

Debt Eraser Review

Do Debt Collectors Ever Give Up?

Can They Garnish Your Wages for Credit Card Debt?

How Often Do Credit Card Companies Sue for Non-Payment?

How Long Does a Judgement Last?

How Long Before a Creditor Can Garnish Wages?

How to Beat a Bill Collector in Court

Not sued yet?

Use our Debt Validation Letter.

Out Debt Validation Letter is the best way to respond to a collection letter. Many debt collectors will simply give up after receiving it.

Let's Do It

It only takes 15 minutes.

And 50% of our customers' cases have been dismissed in the past.

"Finding yourself on the wrong side of the law unexpectedly is kinda scary. I started researching on YouTube and found SoloSuit's channel. The videos were so helpful, easy to understand and encouraging. When I reached out to SoloSuit they were on it. Very professional, impeccably prompt. Thanks for the service!" - Heather