Don’t be scared of bankruptcy: exemptions can provide stability
  1. Home
  2.  » 
  3. Bankruptcy
  4.  » Don’t be scared of bankruptcy: exemptions can provide stability

Don’t be scared of bankruptcy: exemptions can provide stability

| Jun 3, 2020 | Bankruptcy

There’s no shame in falling on hard financial times. It happens to millions of Americans every year. The sad reality, though, is that many of these individual suffer as they try to fight their way out of debt. They might spend years or even decades turning to credit cards, personal loans, payday loans, and family and friends just to make ends meet. Unfortunately, in many instances these actions only leave individual overwhelmed and facing even more debt.

If you’re reading this blog post, then you know that bankruptcy is an option, but you might have some reservations about moving forward with the process. If you’re like a lot of Nevadans, then you might be worried about being left with nothing once the bankruptcy process is over. Take comfort in the fact that this simply isn’t true. Under the law there are a number of bankruptcy exemptions that allow you to keep some items of so that you truly can start the next chapter of your life with some stability and a clean financial slate. Let’s take a look at some of those exemptions.

  • Homestead exemptions: This exemption allows you to keep a certain amount of equity that is built into your home. Since Nevada is pretty generous to debtors, this exemption is significant. In fact, the state allows you to claim more than $605,000 in home equity through this exemption.
  • Personal property exemptions: You might be relieved to know that you can even keep a lot of your personal property after bankruptcy. You can keep about $12,000 worth of furniture, appliance, clothing, and electronics, as well as $5,000 in art, books, and jewelry. You can also keep all of your photographs and keepsakes. Even one gun is exempted from the bankruptcy process, if you own one. Those firearms in excess of one, though, will likely be sold off during a Chapter 7 filing.
  • Motor vehicle exemption: Nevadans can keep up to $15,000 in equity in a vehicle. So, if you owe $5,000 on a $20,000 car, then you’ll pocket that $15,000 when the vehicle is sold off. This exemption is even more generous when the vehicles involved are equipped to assist a disabled individual.
  • Tools exemption: If you work in a profession that requires the use of tools, then much of it may be exempted from bankruptcy. This includes farm tools and related equipment like trucks, tractors, seed, and livestock. However, there are strict limits on the value that can be exempted, typically $4,500.
  • The wildcard exemption: Nevada also provides an addition $10,000 worth of exemptions for any other property that doesn’t qualify under one of the above-identified exemptions or to use in additional to limited exemptions. This can be applies to any property you want to keep. So, if the property in question doesn’t qualify under another exemption, then you can keep up to $10,000 worth of it. Or, on the other hand, you could apply the additional $10,000 wildcard exemption to keep equity in a vehicle that is worth more than the $15,000 motor vehicle exemption.

As you can see, you’ll get to keep a significant amount of financial resources in the event you pursue bankruptcy, even if you choose to pursue a Chapter 7 liquidation bankruptcy. And these are just some of the many exemptions that may apply to you. Many people who go through bankruptcy therefore find that easing themselves of their burden leaves them much better off, and they often wish that they had pursued bankruptcy much sooner than they did.

Therefore, if you’ve been forced to take on insurmountable medical debt, face the sudden and unexpected loss of a job, take on the responsibility of caring for someone with high needs, or simply have struggled to make ends meet for whatever reason, then you might want to seriously consider bankruptcy as an effective debt relief option. An experienced legal team, like the one at our firm, can help Nevadans navigate the sometimes confusing bankruptcy process to ensure that they maximize their chances of achieving the outcome they desire.