What are Nevada Bankruptcy Exemptions?
I have dwelt on this topic previously but I still gets lots of phone calls and every day lots of my clients in the first bankruptcy interview asked me all these questions. So, I am attempting to answer this again in question like format, and see if I can cover the whole area of bankruptcy exemption gain from the debtor’s point of view.
Has state opted out of federal bankruptcy exemptions?
Yes. Nev. Rev. Stat. § 21.090. Every state has to choose either the federal bankruptcy exemption or can choose their individual state exemption. Here, Nevada has its exemption chosen under the state law. If a person has lived in another state mostly, he/she can choose that state’s exemption. For instance, if you have lived in California most of the 180 days preceding your migration to Nevada, you can choose California exemption. In fact, that is the only choice because Nevada exemption would apply if you stay in the state of Nevada for 180 days or more.
Is opt out limited to residents or domiciliaries of the state?
Yes. Nev. Rev. Stat. § 21.090: ‘”Any exemptions specified in [§ 522(d)], do not apply to property owned by a resident of this State. . . .’’
Do state’s exemptions have extraterritorial application?
Personal property: Uncertain.
Wages: Nev. Rev. Stat. §§ 21.090, 31.295 to 31.298.
What is the limit of garnishment in Nevada?
The garnishment may not exceed the lesser of 25% of disposable earnings for the workweek or the amount by which disposable earnings that week exceed 50 times the federal minimum wage.
Survival after payment/deposit:
What exactly is an earning?
Earnings are defined to include compensation received by the judgment debtor, in the possession of the judgment debtor, held in accounts in a bank or any other financial institution, or, in the case of a receivable, compensation that is due the judgment debtor.
Waiver: Not specified in garnishment statute.
Okay, now this is important question. What is Homestead in Nevada?
Nev. Rev. Stat. §§ 21.090, 21.095, 115.005, 115.010,
Amount: $550,000 in either land and a dwelling or a mobile home, subject to certain liens; land held in spendthrift trust for debtor is exempt. Unlimited exemption if ‘‘allodial title’’ has been established.
(Nevada residents can acquire ‘‘allodial title’’ to their land by buying out the property tax right from the government. Then the
landowner does not have to pay property tax on the land.) The primary dwelling, including a mobile home, and land may not be
executed upon for a medical bill during the lifetime of the debtor, debtor’s spouse, a joint tenant who was a joint tenant at the time judgment was entered, or debtor’s disabled dependent adult child, or during the minority of any child of debtor. A 2007 amendment added an exemption for sums reasonably deposited with a landlord, to secure the rental or lease of debtor’s primary residence (except not exempt as to landlord’s claims for rent).
What is the Procedural requirements for filing for Homestead? Procedure available for filing declaration of homestead. Exemption available even without declaration.
Once declaration is filed, spouse must join in any encumbrance or sale.
Special provisions: None specified.
Waiver: Spouse must join in conveyance or encumbrance of declared
What is the limit for Tangible personal property: Nev. Rev. Stat. §§ 21.080, 21.090,
Household goods: $12,000 necessary household goods, furnishings, electronics, wearing apparel, other personal effects and yard
What is the exemption for Motor vehicles?
$15,000, no limit if specially equipped for disabled debtor or dependent.
What is the exemption for Tools of trade?
$10,000 tools of trade; $4500 mining equipment;
$4500 farm equipment.
What is the exemption for Clothing and jewelry?
Jewelry is included in the $5000 wildcard
What is Miscellaneous and wildcard exemption?
$5000 in private library, works of art, musical instruments and jewelry, all family pictures and keepsakes; health aids; property held in a spendthrift trust; uniforms debtor is legally required to keep, one gun, a collection of metal bearing ores, geological specimens, art curiosities or paleontological remains if the debtor catalogues them and the catalogue is kept near the collection for the free inspection of all visitors; coin collections are not exempt. $1000 in any property, including accounts in a financial institution.
Waiver: Not specified in exemption statute.
Are retirement plans, insurance, judgments, and other intangibles exempted in Nevada?Nev. Rev. Stat. §§ 21.080, 21.090, 21.100.
How about Public benefits, Social Security benefits, including without limitation,
retirement, survivors, SSI and disability. Are they Excluded?See Nev. Rev. Stat.
§ 422.291 (assistance awarded pursuant to public welfare administration
laws is exempt). Earned income credit or any similar credit pursuant to state law.
Pensions, retirement plans and annuities: Up to $500,000 (present value) in tax-qualified retirement plan. Insurance, judgments or other compensation for injury: Money or benefits in any manner growing out of life insurance, if premium not more than $15,000 per year (for higher premium, the proportion that $15,000 bears to the premium paid); $16,500 personal
injury judgment; wrongful death judgment for person on whom debtor was dependent; compensation for loss of future earnings of debtor or person on whom debtor was dependent, so far as needed for support; criminal restitution.
Bank accounts: Not specified in exemption statute.
Alimony, child support: Court-ordered family support.
Survival after payment or deposit: Not specified in exemption