Nevada Bankruptcy Exemptions

Like all states, Nevada has a set of exemptions you can use to protect some property when filing for bankruptcy, such as a home, car, and retirement account. In this article, you'll learn:

• how long you must live in Nevada before using its exemptions
• whether Nevada exemptions will protect all of your property, and
• what will happen to any property you can't exempt.

If you have more questions, read Filing for Bankruptcy in Nevada. Not only will you find answers, but it includes helpful checklists and a link to an interactive bankruptcy quiz. Or, try the start-to-finish "Filing for Bankruptcy" guide.

How Nevada's Bankruptcy Exemptions Work

You can protect property covered by an exemption regardless of whether you file for Chapter 7 or 13. But each chapter treats nonexempt property—things not covered by an exemption—differently.

• In Chapter 7 bankruptcy, the bankruptcy trustee sells nonexempt property and distributes the proceeds to creditors.
• In Chapter 13 bankruptcy, you keep everything you own. However, you must pay the value of the nonexempt property equity in your repayment plan, or your disposable income, whichever is more.

Nevada Bankruptcy Exemption List

We've put together a list of some common Nevada bankruptcy to help you determine whether you can protect property important to you. Although the federal bankruptcy exemptions aren't available in Nevada, keep in mind that spouses who share an ownership interest in property can double many exemptions (but not the homestead exemption).

Also, all filers are entitled to:

• use the federal nonbankruptcy exemption list
• protect stimulus payments, tax credits, and child credits using the federal COVID-19 recovery rebate exemption, and
• keep tax-exempt retirement accounts, including 401(K)s, 403(b)s, profit-sharing and money purchase plans, SEP and SIMPLE IRAs, and defined benefit plans and traditional and Roth IRAs to $1,512,350 per person (valid for bankruptcy cases filed between April 1, 2022, and April 1, 2025). (11 U.S.C. 522(b)(3)(C); (n).) Learn more about retirement accounts in bankruptcy.

Nevada Homestead Exemption

You can use the homestead exemption to protect up to $605,000 in equity in a home or mobile home. (Nev. Rev. Stat. §§ 21.090(1)(l), 115.010, 115.050.) You must record a homestead declaration (a form filed with the county recorder's office to put on record your right to a homestead exemption) before filing for bankruptcy to claim this exemption in bankruptcy. Learn more about the Nevada homestead exemption in bankruptcy and protecting your home in bankruptcy.

Example. Suppose that you own a home worth $800,000 and owe $200,000 on the mortgage, leaving you $600,000 of equity. If you file Chapter 7 bankruptcy, you can record and claim the Nevada homestead exemption to protect all of the equity in your home.

Nevada Motor Vehicle Exemption

The motor vehicle exemption ensures that filers can get to work, school, and other places after bankruptcy. You'll be able to protect up to $15,000 of equity in a motor vehicle or unlimited equity in a motor vehicle equipped for a person with a disability. (Nev. Rev. Stat. §§ 21.090(1)(f), 21.090(1)(p).) Learn more about the motor vehicle exemption and protecting cars in bankruptcy.

Nevada Wildcard Exemption

If you have something you'd like to keep that isn't covered by an exemption, the wildcard can help. A debtor can exempt up to $10,000 of any personal property of the debtor's choice (no real estate). (Nev. Rev. Stat. § 21.090(z).)

Other Nevada Bankruptcy Exemptions

Personal Property

• Burial plot or funeral service money held in trust. (Nev. Rev. Stat. § § 689.700; 21.090(1)(ff).)
• All health aids. (Nev. Rev. Stat. § 21.090(1)(q).)
• All keepsakes and pictures. (Nev. Rev. Stat. § 21.090(1)(a).)
• Private libraries, art, musical instruments, and jewelry valued up to $5,000. (Nev. Rev. Stat. § 21.090(1)(a).)
• Appliances, furniture, electronics, household goods, clothing, home, and yard equipment valued at up to $12,000. (Nev. Rev. Stat. § 21.090(1)(b).)
• Collections of ores, geological specimens, paleontological remains, which are numbered in reference books. (Nev. Rev. Stat. § 21.100.)
• Escrow and mortgage impound accounts. (Nev. Rev. Stat. §§ 645A.170, 645B.180.)
• One gun and uniforms (if required by law). (Nev. Rev. Stat. § 21.090(1)(i).)
• Personal injury awards valued at up to $16,150. (Nev. Rev. Stat. § 21.090(1)(u).)
• Victim crime restitution. (Nev. Rev. Stat. § 21.090(1)(x).)
• Income tax refunds attributable to the state or federal Earned Income Credit. (Nev. Rev. Stat. § 21.090(1)(aa).)
• Wrongful death awards to survivors to the extent necessary for support. (Nev. Rev. Stat. § 21.090(v).)
• Future earnings compensation to the extent necessary for support. (Nev. Rev. Stat. § 21.090(w).)
• 75% of wages or 50 times the federal minimum wage, whichever is more. (Nev. Rev. Stat. § 21.090(1)(g).)

Tools of the Trade

• Farm trucks, equipment, and supplies up to a value of $4,500. (Nev. Rev. Stat. § 21.090(1)(c).)
• Miner or prospector's dwelling, working mining claim, cars, tools, and appliances up to a $4,500 value. (Nev. Rev. Stat. § 21.090(1)(e).)
• Arms, uniforms, and accouterments that you are required to keep. (Nev. Rev. Stat. § 21.090(1)(i).)
• Professional library, equipment, and inventory up to a $10,000 value. (Nev. Rev. Stat. § 21.090(1)(d).)

Public Benefits

• Aid to blind, aged, disabled, and public assistance. (Nev. Rev. Stat. § § 422.291; 21.090(1)(kk); 422A.325; 615.270.)
• Worker's compensation (industrial insurance). (Nev. Rev. Stat. § § 616C.205; 21.090(1)(gg).)
• Payments received under the Social Security Act. (Nev. Rev. Stat. § § 21.090(1)(y).)
• Public assistance for children. (Nev. Rev. Stat. § 21.090(1)(ll).)
• Unemployment compensation. (Nev. Rev. Stat. § 612.710; 21.090(1)(hh).)
• Vocational rehabilitation benefits. (Nev. Rev. Stat. § § 615.270; 21.090(1)(jj).)

Retirement accounts and benefits

• Public employees' retirement benefits. (Nev. Rev. Stat. § § 286.670; 21.090(1)(ii).)
• ERISA-qualified pension or stock bonus plan up to $1,000,000. (Nev. Rev. Stat. § 21.090(1)(r).)

Confirming the Nevada Bankruptcy Exemptions

Exemptions change periodically so verify them on the Nevada Legislature's Law Library webpage or by consulting with a local bankruptcy lawyer. If you need more help, you can learn about finding state statutes in Laws and Legal Research.

When You Can Use Nevada Bankruptcy Exemptions

You can file for bankruptcy in Nevada after living there for more than 180 days. However, you must live in Nevada much longer before using Nevada exemptions—at least 730 days before filing, to be exact. Otherwise, you'd use the previous state's exemptions.

But suppose you weren't living in any particular state during the two years before filing for bankruptcy. In that case, you'd use the exemptions of the state you lived in for most of the 180 days before the two-year period that immediately preceded your filing. (11 U.S.C. § 522(b)(3)(A).)

Also, to claim the total value of the Nevada homestead exemption, you must have purchased and owned the property for at least 1,215 days before the bankruptcy filing. If you can't meet this requirement, your homestead exemption is limited by federal law to $189,050 (valid for bankruptcy cases filed between April 1, 2022, and April 1, 2025).

Learn more about filing for bankruptcy after moving to a new state and who can and can't file for bankruptcy.

Avoiding Exemption Issues in Nevada

If you don't exempt your property carefully, you could lose it. Answers to these questions might help you steer clear of common issues.

Do I automatically get to keep my exempt property? Generally, no. Here's the procedure you'll need to follow: You'll select the exemption set that best protects your property, list the exempt assets and applicable exemption laws on Schedule C: The Property You Claim as Exempt, and file it with your other required paperwork.

Will someone check my exemptions? The bankruptcy trustee—the court-appointed official tasked with managing your case—will review Schedule C to ensure that you have the right to protect the claimed property. A trustee who disagrees with your exemptions will file an objection with the court. The judge will decide whether you can keep the property.

Example. Jeff owns a rare, classic car worth $15,000, but the state vehicle exemption won't adequately protect it. Believing that the car qualifies as art—at least in his mind—Jeff exempts it using his state's unlimited artwork exemption. The trustee reviews Schedule C, disagrees with Jeff's characterization, and files an objection with the court. After consideration, the judge will likely side with the trustee, determining that the vehicle doesn't qualify as a piece of art.

What if I make a mistake? Most trustees won't file an objection unless it's clear that the debtor is trying to pull something over on the court. At least not without trying to resolve the issue first. If there's a minor exemption problem, the trustee will likely call you to work out the matter informally.

It's worth noting that it's not a good idea to finesse exemptions. Not only do you have an obligation to supply correct information on your bankruptcy forms, but purposefully making inaccurate statements could be considered fraudulent. Bankruptcy fraud is punishable by up to $250,000, 20 years in prison, or both.

Need More Bankruptcy Help?

Did you know Nolo has been making the law easy for over fifty years? It's true—and we want to make sure you find what you need. Below you'll find more articles that explain what bankruptcy is and how bankruptcy works. And don't forget that our bankruptcy homepage is the best place to start if you have other questions!

We wholeheartedly encourage research and learning, but online articles can't address all bankruptcy issues or the facts of your case. The best way to protect your assets in bankruptcy is by hiring a local bankruptcy lawyer.

Updated March 15, 2022