Exempt Possessions
Although bankruptcy law is a federal law, it provides certain “exemptions” which are found in state law. Nevada has at least 33 exemptions available. If the value of your equity in the property is below the exemption amount, then you will be entitled to keep the property.
It is important to remember that the bankruptcy court values only the equity in an item to determine if it falls within the exemption allowed . For example, a car worth $10,000 wholesale with a loan against it in the amount of $9,000 has only $1,000 of equity. Because of that, you may be able to keep your property even if you file. Further, Nevada is known as a very Debtor friendly exemption state and in almost every Chapter 7 case the Debtor retains ALL of his or her property.
Some of the common Nevada exemptions:
- Homestead – $550,000
- Vehicle – $15,000
- Home Furnishings – $12,000
- Clothing/Jewelry – $12,000
- Miscellaneous (usually used for cash and bank accounts) – $1000
- Retirement Accounts – 100% up to $500,000
- Net unpaid wages owing at time of filing – 75%
- Tools used in current employment – $12,000 per debtor
