Nevada bankruptcy exemptions will play a crucial role in your bankruptcy filing. These exemptions can protect your most valuable assets, making it important to know if you will file for bankruptcy in Nevada.
Nevada exemptions are especially prevalent in Chapter 7 bankruptcy, where assets are liquidated for debt relief. The bankruptcy exemptions will allow you to keep your most important assets during the liquidation process.
In short, whether you are a Nevadan filing for bankruptcy or a novice bankruptcy lawyer, you need to know these Nevada bankruptcy exemptions to be prepared for the landscape of Nevada bankruptcy.
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When looking to find the Nevada bankruptcy exemptions, you can search at the following resources:
Nevada Legislation – The Nevada State Legislature website provides Nevada Revised Statutes NRS-021 covering bankruptcy exemptions.
Consulting A Bankruptcy Attorney – A Bankruptcy attorney can provide valuable information on your bankruptcy case, including the bankruptcy exemptions relating to your case.
Nevada Legal Portals – Websites that provide legal information can be a good source of information on Nevada’s bankruptcy exemptions.
One of Nevada’s bankruptcy exemptions is a motor vehicle exemption. This is there to protect debtors’ means of transportation, which can be vital to keeping up with a Chapter 13 bankruptcy repayment plan.
In Chapter 7 bankruptcy, the motor vehicle exemption allows individuals to shield a certain amount of equity value in their vehicles from liquidation.
This exemption is not limitless and is capped at the following equity value. In this context, equity is the vehicle’s market value minus outstanding loans or liens.
Unmarried – If you are unmarried, this bankruptcy code will protect up to $15,000 in equity in your vehicle.
Married – If you are married, the bankruptcy code will cover up to $30,000 in equity in your vehicle.
If the equity in the vehicle exceeds the allowed limit, it could be subjected to liquidation in a Chapter 7 bankruptcy. However, vehicles meant to help with a disability will be completely exempt, no matter the equity in the car.
The Nevada homestead exemption shields the debtor’s primary residence from the liquidation process.
We go into a deep dive into the Nevada homestead exemption in our article Can You File Bankruptcy And Keep Your House? However, we provide key features on exempt property to understand:
Primary Residence – In bankruptcy cases, this exemption will apply to the debtor’s primary residence.
Equity Limit – In Nevada, the equity limit is $605,000. If you are above this limit, you may not be able to keep your house in a Chapter 7 bankruptcy.
Married Couples = Married people in Nevada have a higher equity limit in the homestead exemption.
It’s crucial for all homeowners in Nevada who are filing for bankruptcy to understand this exemption.
Nevada’s personal property exemptions protect essential personal property from creditors and liquidation. This personal property could include clothing, furniture, household goods, yard equipment, and even tools of the trade.
There are limitations that come with this property exemption. According to the Nevada State law, the following apply:
Private libraries, art, instruments, and jewelry can not exceed $5,000
Household goods, furniture, electrons, clothing, and yard equipment can not exceed $12,000
Fram trucks, stock, tools, and supplies can not exceed $4,500
Tools, inventory, instruments, and materials used to carry a business or trade can not exceed $10,000
This Nevada bankruptcy exemption is a lifeline for those dependent on specialized tools and equipment to earn a living. From mechanics to artisans, this exemption is critical for those who work a trade and are filing for bankruptcy.
It’s important to note that the limit for the tools of trade exemption follows the personal property exemption maximum value limits.
The Nevada wildcard exemption is unlike any other exemption as it’s not tied to a specific asset but allows debtors to exempt $10,000 for an individual and $20,000 for a couple to any property they choose.
This wildcard exemption is extremely beneficial for Nevadans whose financial situation depends on unique or unexpected assets. In addition, the exemption allows adaptability, allowing the debtor to tailor exemptions that better fit their situation.
However, even though the wildcard exemption may seem large, it can go fast when filing for bankruptcy. We recommend contacting a bankruptcy lawyer to walk you through Nevada law and statically using the wildcard amount.
State law recognizes the importance of retirement savings and has exemptions to protect pension and retirement assets. The specifics of Neada’s pension and retirement exemptions include:
IRAs – Individual Retirement Accounts (IRAs) are protected up to a certain limit. In Nevada, IRAs and Roth IRAS are protected up to $500,000.
ERISA-Qualified Plans – ERISA-qualified retirement plans such as 401(k)s, and pension plans are exempt from the bankruptcy process in Nevada.
Public Employee Pensions – Pensions for public employees, such as those from state and local government agencies, are protected from creditors.
Above, we covered the well-known Nevada bankruptcy protections. However, some more unknown exemptions can benefit your situation.
Public benefits such as social security, unemployment compensation, veterans’ compensation, and workers’ compensation are protected if you file bankruptcy.
In Nevada, alimony and child support payments you may receive are exempt when you file for bankruptcy.
The process from a life insurance policy is protected by a clause that prohibits the funds from life insurance to pay off creditors.
Health aids such as wheelchairs or hearing aids necessary for your health are exempt from bankruptcy.
Federal law has a set of federal bankruptcy exemptions that apply to all U.S. states. Some of the federal exemptions are:
Homestead Exemption – The federal homestead exemption protects $25,150 of equity in the debtor’s primary residence.
Motor Vehicle Exemption – The federal exemption on motor vehicles protects up to $4,000 in equity for your vehicle.
Personal Items – The federal exemption on personal property covers household items, furnishings, clothing, appliances, and books up to $13,400.
Jewelry Exemption – Federal law protects jewelry up to $1,700.
Tools of Trade – Federal exemption law covers up to $2,525 for tools and equipment like farm trucks.
Are you filing for bankruptcy in Nevada? If so, you need skill, compassion, and experience on your side. At The Rodney Okano Law Office, we have over 20 years of experience in Nevada bankruptcy law and have helped hundreds of people begin their financial reset.
To get a free consultation with a bankruptcy lawyer call (702) 565-3060.
Can I keep my home if I file for bankruptcy in Nevada?
Yes, the Nevada Homestead Exemption allows you to protect up to $605,000 in equity in your primary residence. This exemption helps ensure you can retain your home during and after bankruptcy.
Are retirement savings protected in Nevada bankruptcy?
Yes, Nevada provides exemptions for certain retirement accounts, including IRAs and 401(k)s.
Can I use Nevada exemptions and federal exemptions in my bankruptcy case?
No, debtors in Nevada must choose either the exemptions the federal exemptions. Mixing and matching between the two sets of exemptions are not allowed.
Can exemptions help me keep my vehicle in Nevada bankruptcy?
Yes, the Nevada Motor Vehicle Exemption allows debtors to protect a certain amount of equity in their vehicles.