How do bankruptcy exemptions work in Nevada?
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How do bankruptcy exemptions work in Nevada?

| Oct 8, 2020 | Bankruptcy

Individuals who file for bankruptcy can keep certain personal assets, known as exemptions. Couples who file together can double the value of the exempt property they may retain. 

Before submitting a bankruptcy petition in Nevada, review the common exemptions state law allows. 

Homestead exemption

Nevada residents can keep equity in a primary residence, whether a home or mobile home. The limit for equity is $605,000 if the couple files a homestead declaration with the county before filing for bankruptcy. 

Financial assets

Certain benefits and funds also receive a Nevada bankruptcy exemption. Examples include: 

  • Unlimited restitution received as a crime victim, as a wrongful death award or for workers’ compensation benefits 
  • Social Security, public assistance, unemployment and vocational benefits 
  • Personal injury awards valued at no more than $16,150 
  • Federal and state income tax refunds 
  • Retirement benefits for public workers 
  • Qualifying retirement accounts 

Personal property

People who file for bankruptcy in Nevada may also keep: 

  • Up to $15,000 in equity in a vehicle (no limit for an individual who has a disability) 
  • Up to $12,000 in home and yard tools, clothes, electronics, furniture and appliances 
  • Up to $10,000 as a wildcard exemption that can apply to any personal property 
  • Up to $5,000 in jewelry, art, books and musical instruments 
  • Up to $4,500 equity in farm equipment and tools 

Nevada residents may also retain legally required work uniforms and one firearm. 

Individuals who are considering Chapter 7 bankruptcy should review the full list of state exemptions to help inform the right choice for their situation.