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:
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 bankruptcy guide, What You Need to Know to File for Bankruptcy.
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.
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:
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.
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.
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.
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).)
Tools of the Trade
Retirement accounts and benefits
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.
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).) Learn more about filing for bankruptcy after moving to a new state.
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 $170,350 (this figure will adjust on April 1, 2022).
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, purposefully making inaccurate statements could be considered fraudulent. Bankruptcy fraud is punishable by up to $250,000, 20 years in prison, or both.
You might not know this, but Nolo has been making the law easy for DIYers for over fifty years. If you have questions, use the links we've included throughout for more details. Otherwise, you'll find the answers to almost all of your bankruptcy questions at nolo.com/legal-encyclopedia/bankruptcy or by consulting with a local bankruptcy lawyer.
This overview cannot provide all of the information you'll need to file a bankruptcy case. Consider buying a self-help book such as How to File Chapter 7 Bankruptcy by Attorney Cara O'Neill and Albin Renauer J.D for more detailed information.
Updated August 12, 2021