Those filing for Chapter 7 bankruptcy relief in the state of Nevada must follow the state statutes to determine the types and amounts of exemptions available. Federal exemption standards are unavailable to Nevada residents. However, in most cases, Nevada exemptions offer much greater protection than federal standards.
In addition, while Chapter 7 bankruptcy allows filers to satisfy or have erased the majority of their consumer debt, it is important to note that they will still be responsible for such outstanding payments as tax debts, alimony payments, child support, and some students loans. Under Nevada law, there are opportunities to save some of a filer’s personal property due to state exemptions.
How to Keep Your Car
State and federal exemptions differ in this area:
- Federal exemption – $3,225
- Nevada state exemption – up to $15,000 (although there is no value limit for vehicles equipped for the disabled)
While a consumer debt for a vehicle can be erased, if it is secured by the vehicle itself, it must be paid or the creditor has the right to repossess the property.
How to Keep Your Home
- Federal homestead exemption - $20,200
- Nevada state exemption – up to $550,000 for real property or mobile homes
- Filer must record a homestead declaration before filing a petition for bankruptcy
Like a vehicle, any property that secures a loan can be foreclosed upon if the debtor fails to make their payments, even if the debt itself has been erased.
Nevada allows exemptions for other forms of personal property:
- Household goods, appliances, furniture, home and yard equipment – up to $12,000 total
- Books, jewelry, works of art, and musical instruments – up to $5,000 total
- Pictures and keepsakes, health aids, 1 gun
- Stocks in some closely-held corporations
- Any other personal property – up to $1,000
- Metal-bearing ores, geological specimens, paleontological remains or art curiosities which have been arranged and classified in reference books
- Funeral service contracts funds and burial plot purchase monies held in trust
- Tools of the trade:
- Tools, materials, library, equipment, inventory, and supplies – up to $10,000
- Farm trucks, equipment, tools, stock, and seed – up to $4,500
- Cabin or dwelling of a miner or prospector, cars, implements and appliances for mining, and a mining claim being worked – up to $4,500
- Arms, uniforms, and accoutrements for government service
Filing Schedule C of a Bankruptcy Petition
Nevada has a wide array of personal property that may be claimed as exempt. In order to ensure that all of those claims are honored and that all fall under Nevada statutes, Chapter 7 bankruptcy petitions require a Schedule C form be completed. That form must include information about:
- The property type
- The state statutes that apply
- The value of the property exemption
- The current assessed value of the property (not the market value)
Talk to a Local Bankruptcy Lawyer for Advice
Chapter 7 bankruptcy petitions in Nevada are detailed and exhaustive, ensuring the least amount of fraud. That means honest filers must also prepare their petition carefully and accurately or, in some cases, lose their exemptions. That is why it can be vital to enlist the assistance of a Nevada bankruptcy attorney who knows the laws and the most advantageous exemption plans to protect their clients.
