Business Debt Restructuring in Nevada: 7 Laws That Change Your Leverage (2026)

The Two Nevada Rules That Decide Everything Else

Nevada is an easy state to fund into and a hard state to argue in, and both halves of that come from the same short sentence in NRS 99.050(1). Parties may agree for the payment of any rate of interest on money due or to become due on any contract, for the compounding of interest if they choose, and for any other charges or fees. There is no general ceiling to breach, no criminal usury line of the kind New York carries, and no civil penalty schedule waiting for a funder who priced your advance at the equivalent of triple digits, which is why owners who arrive here having read about a rate defense somewhere else spend the first two weeks of a workout looking for a statute that does not exist.

The rule running the other direction is one almost nobody signs up for deliberately. Nevada never adopted the warrant of attorney. NRS 17.100 permits a judgment by confession only on a statement in writing, signed by the defendant and verified by his or her oath, that authorizes entry of judgment for a specified sum and states concisely the facts out of which the debt arose. A clause buried on page nine of a funding agreement is not that document, and no lawyer the funder picks can supply it for you. When a confessed judgment does surface against a Nevada business, it almost always came from another state and had to be walked in through the door NRS 17.350 opens.

Between those two poles sit five questions that actually price a Nevada settlement. What the code does and does not require a funder to disclose or hold a license for, how far back a creditor can unwind what you moved out of the company, and how quickly a judgment reaches an operating account are the first three. The last two are whether your entity has standing under the deceptive trade practices statute, and what is left standing in your own name once a personal guaranty converts into a judgment against a married couple in a community property state, and the sections below take them in the order a file moves through them.

1. Nevada Makes You Confess Your Own Judgment

A confession of judgment in Nevada is a two-page instrument you sign after the fact, not a clause you sign at funding. NRS 17.090 allows a judgment by confession to be entered without action, either for money due or to become due or to secure a person against contingent liability, but only in the manner NRS 17.100 and NRS 17.110 prescribe. NRS 17.100 requires a written statement signed by the defendant and verified by oath, authorizing entry of judgment for a specified sum, and where the confession is for money it must also state concisely the facts out of which the debt arose and show that the sum confessed is justly due. NRS 17.110 sends that statement to the clerk, who enters judgment for the amount confessed with $28 costs, and the statement and the judgment become the judgment roll.

Read that against what an Ohio or a Pennsylvania funder holds and the gap explains why Nevada files settle on different arithmetic. There is no warrant of attorney in chapter 17, no provision letting the creditor appoint counsel to appear for you, and nothing that converts a signature page into a judgment while you are asleep. The legislature went further for one class of creditor. NRS 675.350(1) forbids a licensee under the Installment Loan and Finance Act from taking any confession of judgment, and it also bars any power of attorney running to the licensee or to a third person to confess judgment or to appear for the borrower in a judicial proceeding. A receivables desk pricing a Nevada file has to assume a contested case, and files that have to be litigated get settled on different numbers than files that can be reduced to a filing clerk’s errand.

The confessed judgments that do land on Nevada businesses were entered somewhere else and brought here under the Uniform Enforcement of Foreign Judgments Act, which at NRS 17.350 lets an exemplified copy of any foreign judgment be filed with the clerk of any district court in the state. Once filed it is treated the same way a Nevada judgment is treated, and it carries the same procedures and defenses for reopening, vacating or staying. NRS 17.360 requires the creditor to file an affidavit with your last known address and to mail notice of the filing by certified mail, return receipt requested, and subsection 3 bars any execution or other enforcement process until 30 days after that mailing date. The count runs from the mailing, which is why the first question for counsel is when the envelope went out rather than when the paper was filed.

Nevada also put a price on skipping that sequence, and it is one of the few genuinely aggressive debtor provisions in the code. NRS 31.2945 covers a judgment debtor who is a resident of this State and who either maintains an account or other property at a Nevada branch of a financial institution or draws earnings from Nevada employment. That debtor may sue a foreign judgment creditor that obtained a writ of garnishment without satisfying NRS 17.330 to 17.400. Damages are two times any amount paid to the creditor under the writ, and the court must award reasonable fees and costs to a prevailing plaintiff. Where an out-of-state judgment has already swept an account, the domestication file is the first thing counsel in the Delancey Street network pulls, because a defective filing changes what the funder is willing to discuss.

2. The Rate Is Whatever the Writing Says

NRS 99.050(1) is four lines long and it ends the usury conversation in Nevada before it starts. Parties may agree for the payment of any rate of interest on money due or to become due on any contract, may agree to compound it, and may agree to any other charges or fees. The one condition attached is procedural: the parties shall specify in writing the rate upon which they agree, that interest is to be compounded if so agreed, and any other charges or fees to which they have agreed. The only rate ceiling in the section is NRS 99.050(2), which caps consumer credit extended to a covered service member or a dependent at the lesser of 36% annual percentage rate or the federal maximum and voids a contract that exceeds it. That provision has nothing to do with an advance against your company’s receivables.

Where no writing fixes a rate, NRS 99.040 supplies one, and it is the prime rate at the largest bank in Nevada, as ascertained by the Commissioner of Financial Institutions on the January 1 or July 1 immediately preceding the transaction, plus 2%, readjusting on each January 1 and July 1 thereafter until the judgment is satisfied. That is the default a court reaches for on an implied contract or a detained sum, and it is generous compared to what most funding agreements recite. NRS 17.130(2) then carries the same formula onto a judgment, but only where no rate is provided by contract or otherwise by law, and it starts the meter at the time of service of the summons and complaint rather than at entry.

From the funder’s side, that combination is why Nevada paper prices well, because a recovery model that assumes a contract default rate survives collection, accrues from service, and faces no statutory cap produces a number that grows on its own while the file sits. Two years between service and satisfaction at a stated default rate is not a rounding difference on a $200,000 balance, and it explains why a funder that already has a judgment feels no urgency to close at your number. The practical consequence for a Nevada workout is that time is expensive in a way it is not in states where post-judgment interest is fixed at a low statutory figure.

None of that means the pricing is beyond argument, only that the argument does not start at the rate. What the writing requirement in NRS 99.050(1) does give you is a document question with real teeth in some files. Ask whether the agreement actually specifies the charges and fees it later imposes, or whether returned item fees, default fees, servicing fees and stacking penalties came off a schedule nobody signed. Take the position that the total repayment amount and every fee has to be traceable to the executed documents, and make the funder produce them. That is a smaller point than a usury defense and it is the one Nevada leaves open.

3. No Disclosure Statute, and a License Question Nobody Pulled

As of August 2026 the Nevada Revised Statutes contain no commercial financing disclosure law and no registration regime for providers or brokers of business-purpose financing. Nothing requires a funder to hand your company a page stating the amount financed, the amount you actually receive after fees, the total repayment amount, the finance charge or an estimated annual percentage rate. No Nevada agency maintains a list of funders you can check before signing, and there is no state complaint process aimed at this product, because there is no state duty to complain about. Advice built on New York’s article 8 disclosure regime or California’s Financial Code requirements describes a different jurisdiction, and the first job in a Nevada file is confirming whether a choice of law clause drags any of it along.

The legislature’s silence here is deliberate rather than accidental, which is worth knowing before you assume a bill is coming. In 2023 it created an entire licensing chapter for an adjacent product. NRS chapter 604D, added at page 2395 of the 2023 Statutes of Nevada, licenses earned wage access providers through the Nationwide Multistate Licensing System and requires a $35,000 surety bond under NRS 604D.250. It also requires full fee disclosure and a no-cost option under NRS 604D.400, bars the provider from using credit reports for eligibility or suing the user to collect under NRS 604D.410, and authorizes an administrative fine up to $50,000 for unlicensed activity under NRS 604D.620. Most of the chapter is written to sunset December 31, 2029. A legislature that detailed about a consumer paycheck advance and silent about a six-figure receivables purchase has made a choice.

What Nevada does have, and what almost nobody pulls, is a licensing statute broad enough to reach commercial lending. NRS 675.060 provides that no person may engage in the business of lending in this State without a license from the Commissioner for each office or place of business. NRS 675.020(4) defines that business as soliciting loans in this State or making loans to persons in this State, unless the transactions are isolated, incidental or occasional. The exemption list at NRS 675.040 runs to banks, credit unions, mortgage companies, real estate investment trusts and gaming licensees, and subsection 11 exempts a person who exclusively extends credit to non-residents for business purposes located outside Nevada. Lending to a Nevada business is not on that list, and several national online lenders publish Nevada among the states they will not fund at all.

The honest limits on that argument matter as much as the argument. Chapter 675 reaches loans, so it does nothing until a court is persuaded that a purchase of future receivables was a financing in substance. NRS 675.035 is the hook for that fight, because it applies the chapter to a person who seeks to evade it by device, subterfuge or pretense, including by calling a loan by any other name. The penalties also run to the state rather than to you: NRS 675.470 makes unlicensed dealing a misdemeanor and NRS 675.490 authorizes an administrative fine of not more than $10,000. No private damages remedy is written into the chapter. What a documented licensing exposure buys is a funder that would rather settle than have the Commissioner of Financial Institutions read the file. Our rundown of Nevada MCA defense counsel covers who actually litigates these.

4. Chapter 112 Still Says Fraudulent, and the Insider Window Is 12 Months

About half the country renamed this body of law when it adopted the 2014 revisions, and the vocabulary is a quick way to check whether an adviser has read the statute a Nevada judge applies. NRS 112.140 says the chapter may be cited as the Uniform Fraudulent Transfer Act, and the operative sections still speak of a transfer being fraudulent as to a creditor. A memo about voidable transactions is describing some other state’s code. The tests live in NRS 112.180(1). Paragraph (a) reaches a transfer made with actual intent to hinder, delay or defraud any creditor, while paragraph (b) needs no intent at all and applies where you got no reasonably equivalent value and either had unreasonably small remaining assets for the business you were about to engage in or believed you would incur debts beyond your ability to pay.

NRS 112.180(2) then lists eleven factors a court may weigh on intent, and running your own last twelve months against that list is a more useful exercise than most owners expect. The factors include whether the transfer went to an insider, whether you kept possession or control of the property afterward, and whether the transfer was disclosed or concealed. They also reach whether you had been sued or threatened with suit beforehand, whether the transfer covered substantially all your assets, whether assets were removed or concealed, and whether the consideration coming back was reasonably equivalent to what went out. Insolvency at the time or shortly afterward counts, and so does a transfer made shortly before or shortly after a substantial debt was incurred. The eleventh factor is the one this industry sees constantly, and it describes a debtor who transferred the essential assets of the business to a lienor who transferred them to an insider of the debtor.

NRS 112.190 adds the versions that require an existing creditor. Subsection 1 reaches a transfer for less than reasonably equivalent value while insolvent or that caused the insolvency. Subsection 2 reaches a transfer to an insider on an antecedent debt where you were insolvent and the insider had reasonable cause to believe it, which is the paragraph that captures paying yourself back on an old shareholder loan while the advances went unpaid. The deadlines in NRS 112.230 do not merely bar a remedy, they wipe out the claim. An actual-intent claim gets 4 years, or 1 year after the transfer was or reasonably could have been discovered if that is later, while the constructive claims under NRS 112.180(1)(b) and NRS 112.190(1) get 4 years, and the insider antecedent-debt transfer under NRS 112.190(2) gets 1 year.

Two Nevada wrinkles change how this section reads, and the first is NRS 112.150(2)(c), which excludes from the definition of asset an interest in property held as community property to the extent it is not subject to process by a creditor holding a claim against only one spouse, and quietly narrows what a single-guarantor creditor can attack. And NRS 112.230(2) carves the chapter out entirely for transfers to a spendthrift trust under chapter 166, where NRS 166.170 gives an existing creditor 2 years from the transfer or 6 months from discovery, whichever is later, and requires clear and convincing proof. None of that is an instruction to move anything, and it should not be read as one. Every distribution, equipment sale, intercompany transfer and loan repayment in the last four years should be dated, valued and put in front of counsel before a workout plan is drafted, because the plan has to be built around what already happened.

5. A Nevada Writ Needs No Judge and No Waiting Period

Post-judgment collection in Nevada is fast because two of the usual friction points are missing. NRS 21.010 lets the prevailing party obtain a writ of execution at any time before the judgment expires, with no statutory cooling-off period after entry. NRS 21.120(1) then covers personal property that is not in the debtor’s possession, including debts or credits due or to become due, and on instructions from the creditor and without requiring an order of court, the sheriff shall serve a writ of garnishment in aid of execution on whoever holds it. Compare NRS 31.249(1), which says no writ of garnishment in aid of attachment may issue except on order of the court. Before judgment a creditor needs a judge; after judgment it needs a form and a sheriff.

What the writ reaches is narrower than owners fear in one respect and wider in another. NRS 31.291(3) provides that a garnishment of a bank, credit union, savings and loan or savings bank creates a lien only upon the amounts in the account at the time of service. A single writ therefore does not sit on the account and capture next Friday’s deposits. It also means a creditor that knows your deposit rhythm can serve repeatedly. The garnishee has 20 days after service to answer the interrogatories under NRS 31.260(1)(e). The 180-day continuing writ in NRS 31.296(1) applies where the garnishee is an employer, not to an operating account. NRS 21.118 covers a levy on a going business: with the debtor’s consent the sheriff places a keeper in charge for at least 2 days, and during that period you may operate for cash only, with the full proceeds handed to the keeper.

The exemption clock is where Nevada files are lost. Under NRS 21.112(1) a judgment debtor has 10 days after the notice of the writ is served by mail under NRS 21.076 to serve a claim of exemption on the sheriff, the garnishee and the creditor and file it with the clerk. Property must then be released within 9 judicial days unless the creditor serves an objection and a notice of hearing, which has to be filed within 8 judicial days after the claim is served. The floor amounts in NRS 21.105 give a personal bank account $2,000 where electronically deposited federal benefits are identifiable and $400 otherwise, and both are written for a judgment debtor’s personal account rather than for your company’s operating account, which has no comparable protection.

Three more mechanics set the timeline a workout has to beat. NRS 17.150(2) makes a recorded transcript or abstract a lien on all non-exempt real property the debtor owns in that county or later acquires, continuing 6 years from docketing. NRS 17.214 lets the creditor renew by affidavit filed within the 90 days before expiration, with a copy mailed to you by certified mail within 3 days. NRS 21.270 then entitles a creditor, at any time after entry, to an order requiring you to appear and answer under oath about your property, and that examination may be taken before an attorney representing the creditor rather than a judge. If the judgment is against you personally and the business is held in an LLC, NRS 86.401(2)(a) makes a charging order the exclusive remedy against your membership interest, whether the company has one member or more. NRS 78.746 extends the same protection to stock in a closely held Nevada corporation.

6. Your Company Has Standing Under Chapter 598

Most state unfair practices acts are written around a consumer and stop at the entity door, and Nevada’s does not. NRS 598.0915 defines a deceptive trade practice by what the defendant did in the course of his or her business or occupation, with no requirement that the plaintiff be a consumer. The private action at NRS 41.600(1) is available to any person who is a victim of consumer fraud, and subsection 2(e) defines consumer fraud to include a deceptive trade practice as defined in NRS 598.0915 to 598.0925. NRS 0.039 defines person, for the statutes generally, as a natural person, any form of business or social organization and any other nongovernmental legal entity, including a corporation, partnership, association, trust or unincorporated organization, so your LLC is a person for this purpose.

The Nevada Supreme Court closed the remaining gap in R.J. Reynolds Tobacco Co. v. Eighth Judicial District Court, 138 Nev., Adv. Op. 55 (July 28, 2022), holding that a victim of consumer fraud under NRS 41.600 need not be a consumer of the defendant’s goods or services. The practices that fit a funding file are scattered across several sections rather than gathered in one, with NRS 598.092(8) reaching a person who knowingly misrepresents the legal rights, obligations or remedies of a party to a transaction, and NRS 598.0915(15) reaching any other knowingly false representation in a transaction. NRS 598.0923(1) adds conducting business without all required state, county or city licenses, knowingly failing to disclose a material fact in connection with the sale of goods or services. It also reaches knowingly violating a state or federal statute relating to such a sale, and using coercion, duress or intimidation in a transaction.

The remedies read well and the fee exposure runs one way. NRS 41.600(3) directs that a prevailing claimant shall be awarded damages sustained, any equitable relief the court deems appropriate, and costs and reasonable attorney’s fees. Subsection 4 confirms the action is not an action upon the contract underlying the original transaction, which matters where the funding agreement carries an arbitration or forum clause. NRS 598.0999(3) instructs a court to require a person who knowingly and willfully engaged in a deceptive trade practice to pay the aggrieved party the profits derived and treble damages on damages suffered. That language sits inside the criminal penalty provision, and whether a private plaintiff can reach it outside such a proceeding is a question to put to Nevada counsel rather than to assume.

Two limits keep this honest, and a funder will raise both, starting with NRS 598.0955(1)(a), which exempts conduct in compliance with the orders or rules of, or a statute administered by, a federal, state or local governmental agency, and which a funder will invoke wherever it can point to something it is licensed under. And the clock is shorter than the contract clock: NRS 11.190(2)(d) gives 4 years for a deceptive trade practice claim, accruing when the aggrieved party discovers or by due diligence should have discovered the facts constituting the practice. A claim on the written contract itself gets 6 years under NRS 11.190(1)(b). In most Nevada files the live counts are breach, fraud in the inducement and recharacterization, with a chapter 598 count added where the sales call, the term sheet and the executed agreement tell three different stories in writing.

7. What a Guarantor Keeps in a Community Property State

Once a personal guaranty becomes a judgment in your own name, NRS 21.090(1) is the list of what a creditor cannot take, and the figures are specific enough to plan against. Professional libraries, equipment, supplies, tools, inventory, instruments and materials used to carry on your trade or business are exempt to $10,000 under paragraph (d). One vehicle is exempt where your equity does not exceed $15,000 under paragraph (f). Household goods, furnishings, electronics, apparel and yard equipment run to $12,000 under paragraph (b), and private libraries, art, musical instruments and jewelry to $5,000 under paragraph (a). Retirement money is protected to $1,000,000 in present value under paragraph (r), personal injury compensation to $16,150 under paragraph (u), and the wildcard at paragraph (z) covers any other personal property, including equity in money, stocks, bonds or funds on deposit, to $10,000 of your choosing.

Earnings are protected by whichever of three formulas leaves the most under paragraph (g), and the choices are 82% of disposable earnings for a workweek in which gross weekly pay was $770 or less, 75% where it exceeded $770, or 50 times the federal minimum hourly wage in effect when the earnings are payable. Two structural points sit underneath the list. NRS 21.090(3) confirms Nevada opted out of the federal bankruptcy exemptions, so the section 522(d) schedule does not apply to a Nevada resident unless the same protection appears in subsection 1. And nothing in NRS 21.090 indexes these amounts to inflation, so the printed number is the number until the legislature moves it, which it last did for this section in 2025.

The homestead is the largest figure and it has a step people skip, because NRS 115.010(2) extends the exemption to equity not exceeding $605,000, a figure set in the 2019 session and unchanged through the 2025 session. NRS 115.020 requires the claimant to declare the intention in writing, signed, acknowledged and recorded the way conveyances of real property are recorded. NRS 115.050 shows what happens when a creditor tests the number. On the creditor’s oath that equity exceeds $605,000 the judge appoints three disinterested appraisers, and if the property cannot be divided it is sold with $605,000 paid to you first, and no bid under that amount may be received. NRS 115.055, added in 2019, keeps those proceeds exempt only if they are reinvested in like-kind property identified within 45 days and occupied within 180 days of the sale. And under NRS 115.010(3) the exemption never reached purchase-money obligations, improvements, mechanics liens, taxes or a mortgage or deed of trust both spouses executed.

Community property changes who has to be named and what is reachable. NRS 123.220 makes all property acquired after marriage by either spouse community property absent a written agreement, a decree or a statutory exception. NRS 123.050 protects the separate property and the community share of one spouse only from debts the other contracted before the marriage, which is a narrow shield for an advance signed last year. Read that with NRS 123.230(6), which provides that where both spouses participate in managing a business, neither may acquire, sell, convey or encumber its assets, including real property and goodwill, without the other’s consent, while a sole managing spouse may act alone in the ordinary course. Whether a security interest signed by one spouse over a jointly managed Nevada business survives that subsection is worth asking counsel early, because the answer changes who signs the settlement. Our page on challenging a personal guaranty covers the guaranty side in more detail.

The Order a Nevada Stack Actually Comes Apart

Everything above is inventory. The sequence is what turns it into a settlement, and it starts with a search rather than a call. Nevada files financing statements with the Office of the Secretary of State under NRS 104.9501(1)(b) for everything except as-extracted collateral, timber and fixture filings, so one search produces the list of who claims your receivables and in what order they got there. Pull it before you negotiate anything, because the position that has been on the index longest is the one with the strongest claim to the same dollars every other funder is counting on. A junior position that knows it is junior prices its exit very differently than one that thinks it is first.

The second document is the reconciliation record. Nevada gives you no disclosure statute to point at, which means the file has to be built out of what the agreement promised and what the funder did when you invoked it. Make the request in the exact form the contract specifies, in writing, with bank statements and processor reports attached, and keep proof of delivery. A refusal, a demand for documents the agreement never mentioned, or silence is worth more in negotiation than any hardship narrative, and it is the evidence a recharacterization argument runs on if the file ever needs one.

The third is the exit paper, and it is where self-negotiated Nevada settlements most often go wrong. A payoff letter is not a release. What closes a position is an agreement naming the funder, its successors, assignees, servicers and participants, releasing the guarantor by name as well as the entity, and requiring a UCC-3 termination within a stated number of days after the final payment clears. If a termination does not appear, NRS 104.9513(3) requires the secured party, within 20 days after receiving a signed demand from the debtor, to send or file a termination statement where there is no remaining obligation and no commitment to give value. Send the demand in writing and date it. Settling four positions and then discovering the following year that two financing statements are still on the index is how a business pays for a workout twice. Our review of Nevada business debt settlement companies covers what outside help adds to that sequence.

Who Should You Call? Our Top-Rated Business Debt Firms

One firm on this list works the entire lifecycle of a business debt file, from stopping the daily debits through attorney-led negotiation, UCC lien removal, and a signed release. The other two cover broader debt categories that often sit alongside the advances. Choose accordingly.