Nevada bankruptcy laws: What are the Laws Regarding Bankruptcies in the State of Nevada
If you are a resident or business in the state of Nevada, you may be entitled to protections under the federal and state bankruptcy laws. Nevada state law guarantees you of your property rights within the bankruptcy process.
Who files for bankruptcy?
Individuals, married couples, and businesses have the right to seek bankruptcy protection as long as they meet certain conditions. Generally, individuals or married couples file under chapter 7 or 13 for bankruptcy protection. Businesses typically file for protection under Chapter 11, and farmers or fisherman who file under Chapter 12. It is advisable to consult with a qualified bankruptcy attorney of the state to determine whether bankruptcy is available to you and to help you determine which chapter of bankruptcy is appropriate for your situation.
Nevada bankruptcy and exemptions
Generally, the laws of the state in which you lived for two years before filing a bankruptcy petition will apply in your bankruptcy.
If the application of the existing general rules renders you ineligible for exemptions under any states laws, you may be allowed to select from the federal exemptions that as applicable in your bankruptcy.
For the vast majority of the residents of Nevada, who want to get rid of their massive debt burden without repaying it, Chapter 7 provides them with the most attractive choice.
A bankruptcy proceeding generally requires a person to sell all of their assets to pay for their debts. One primary purpose of homestead laws is to prevent homelessness when someone is in a state of bankruptcy. A person who goes through bankruptcy will have fewer assets than liabilities.
Here are some of the most common bankruptcy exemptions in Nevada:Homestead
Exemption for homestead is a maximum of $550,000 in equity in a home. If you want to claim this bankruptcy exemption, you are required to file a homestead declaration with the county recorder’s office before filing for bankruptcy.Personal property
The biggest fears people often have when they file for bankruptcy is that they will lose all of their property. Fortunately, Nevada is known as a debtor-friendly state that protects many forms of personal property, including:
- Funeral service or burial plot funds held in trust
- Health Aids
- Photographs and keepsakes
- One gun
- Mortgage impound accounts
- Criminal restitution
- Refunds on income tax attributable to Nevada or federal Earned Income Credit
- Geological samples, paleontological remains, and cataloged and arranged ores, which are indicated in reference books
- Up to $5,000 of equity in art, books, jewelry, and musical instruments
- Up to $12,000 of investment in furniture, appliances, household goods, electronics, clothing, yard, and home equipment
- Up to $16,500 in awards for personal injury
The Nevada bankruptcy exemption for motor vehicles is up to $15,000 of equity in vehicles equipped for a disabled person.Public benefits
Public benefits exemptions include:
- Aid to disabled, aged, blind and public assistance
- Industrial insurance (worker’s compensation)
- Compensation to crime victims
- Unemployment payments
- Children’s public support
- Benefits for vocational rehabilitation
- Social Security Act paymentsIncome and wages
The wages and income exemption is 75 percent of salary, or 50 times the federal minimum wage (whichever amount is higher).Wildcard
There is a “wildcard” exemption of up to $1,000 of any personal property not already covered in the above categories.
People who lend or creditors have a window of 60 days to either file an objection to the bankruptcy discharge for certain debts. As a result, debtors will generally receive a release after the 60-day objection period ends, it usually takes three to six months. If the court approves the plan, you as a debtor can begin your repayment. If not, the debtor regularly submits a new repayment plan. Once the debtors complete his/her repayment plan, usually within three to five years, he/she receives a discharge