When an individual files bankruptcy, you have the ability to keep property that you exempt. If you own property that is worth less than the exemption, then you will be able to keep the property in a Chapter 7 Case. For instance, if your home is worth $500,000 and you owe $250,000, then you have equity of $250,000. If the applicable exemption is more than $250,000, then you will be able to keep your home. Note, that you still need to pay your mortgage, but you get to keep your home.
Nevada has opted out of the federal exemption scheme and has its own set of exemptions. Provided that you qualify to utilize the Nevada exemptions, such exemptions include:
· $5,000 for private libraries, works of art, musical instruments, and jewelry
· $12,000 for necessary household goods, furnishings, electronics, wearing apparel, other personal effects, and yard equipment39
· $10,000 for professional libraries, equipment, supplies, and the tools, inventory, instruments, and materials used to carry on the trade or business
· $15,000 for one vehicle
· $605,000 for your homestead
· $10,000 wildcard for any personal property no otherwise exempt
Exemption planning is extremely important in the filing of a bankruptcy case. I urge you to consult with an attorney if you are thinking about filing bankruptcy so that you can properly utilize your exemptions.
If we can of assistance, then do not hesitate to contact my firm at 702-386-8600.