Nevada Bankruptcy Laws
One of the important forms of protection available to Chapter 7 clients is property exemption under state and federal laws. These statutes allow the client to claim certain types of property as exempt from liquidation. In Nevada, only state statutes are available, but they include:
Homestead |
Up to $550,000 |
Personal Property |
Motor vehicles up to $15,000; household goods, furniture and miscellaneous equipment, up to $12,000 total; other forms of personal property up to $5,000 total; keepsakes; health aids; personal injury up to $16,500; wrongful death awards; restitution for criminal acts; $1,000 additional of any personal property; funeral service contract |
Wages |
30 times the federal hourly minimum wage per week or minimum of 75% of disposable weekly earnings, whichever is greater |
Pensions |
Tax exempt retirement accounts; Traditional and Roth IRAs up to $1,095,000/person; up to $500,00 in an IRA; deferred compensation; ERISA-qualified benefits; public employees |
Public Benefits |
Crime victims’ compensation; aid to blind, aged, and disabled; public assistance; public assistance for children; unemployment; vocational rehabilitation benefits; industrial insurance (worker’s comp) |
Tools of the trade |
Up to $10,000; farm equipment, tools, stock, and seed, up to $4,500; mining equipment, cabin, cars, or claims, up to $4,500; required arms uniforms, and accoutrements |
Insurance |
Some forms of life insurance policies or proceeds; health insurance proceeds; group life or health policies or proceeds; annuity contract proceeds up to $350/mo.; fraternal society benefits |
Miscellaneous |
Security deposits on rental residence |
Once all these options are considered and the type of bankruptcy petition is determined, but before they can file, the debtor must attend credit counseling. Once completed, the debtor and their attorney file their petition with the bankruptcy court. At that point, the bankruptcy trustee takes charge of the case:
- Determining if the client is qualified to file. If they are not qualified for Chapter 7, the trustee may have them convert to Chapter 13
- Holding a 341 meeting, named after the section of the bankruptcy code, to question the debtor about their assets and claims, if necessary, under oath and to allow any creditors who attend to question the client
- Once the petition is granted, the client must complete a court-approved debt education course before any debts can be discharged.
- Debts can be discharged for the Chapter 7 client at this point; for a Chapter 13 client, some debts may be discharged if not paid in full at the end of the repayment plan.
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