Nevada Bankruptcy Exemptions: What Property You Can Keep When You File in Las Vegas

One of the most common fears people have about filing for bankruptcy is losing everything they own. The reality in Nevada is very different. Nevada has some of the most generous bankruptcy exemptions in the United States, meaning that most Las Vegas residents who file for Chapter 7 or Chapter 13 bankruptcy get to keep the majority — and often all — of their essential property. Understanding what is protected before you file is one of the most important steps in the bankruptcy process.

What Is a Bankruptcy Exemption?

A bankruptcy exemption is a legal protection that removes certain assets from the reach of your bankruptcy trustee and creditors. When you file for Chapter 7 bankruptcy in Nevada, the trustee can only liquidate assets that are not covered by an exemption. In Chapter 13 bankruptcy, exemptions determine how much you must pay unsecured creditors through your repayment plan. Nevada has chosen to “opt out” of the federal bankruptcy exemption system, which means Nevada filers must use Nevada’s state exemptions — but in most cases, Nevada’s exemptions are more favorable than the federal alternatives.

Nevada’s Key Bankruptcy Exemptions

Homestead Exemption — Up to $605,000

Nevada’s homestead exemption protects up to $605,000 of equity in your primary residence. This is one of the highest homestead exemptions in the country. To claim it, you must have recorded a Declaration of Homestead with the county recorder before filing for bankruptcy. If you own a home in Las Vegas or Henderson and have equity below $605,000, your home is protected entirely from your bankruptcy creditors — provided the homestead declaration is properly filed in advance.

Vehicle Exemption

Nevada exempts up to $15,000 in equity in a motor vehicle — or up to $25,000 if the vehicle has been modified for a person with a physical disability. If your car is worth less than what you owe on it, or if your equity falls within the exemption amount, you keep your vehicle. Many Las Vegas filers who drive modestly valued vehicles are not at risk of losing them in bankruptcy.

Retirement Account Protection

This is one of the most important exemptions for working Las Vegas residents. Most retirement accounts — including 401(k) plans, 403(b) plans, IRAs, and pension plans — are fully protected in Nevada bankruptcy. ERISA-qualified plans receive unlimited protection under federal law, and Nevada law additionally protects IRAs and other individual retirement accounts. This means that money you have saved for retirement is not at risk when you file for bankruptcy.

Personal Property Exemptions

Nevada protects a broad range of personal property in bankruptcy, including household goods and furnishings up to $12,000, jewelry up to $5,000, health aids required by the debtor or a dependent, tools of the trade up to $10,000, professionally prescribed health aids, and life insurance proceeds in certain circumstances. The state also protects a portion of your wages from garnishment by creditors outside of bankruptcy, and bankruptcy filing stops virtually all collection actions immediately through the automatic stay.

Wildcard Exemption

Nevada provides a wildcard exemption that allows filers to apply up to $10,000 in protection to any property of their choosing that is not otherwise covered by a specific exemption. This gives Las Vegas filers flexibility to protect assets that do not fit neatly into the enumerated categories.

What Is Not Exempt in Nevada Bankruptcy?

Non-exempt assets — those not protected by any Nevada exemption — can be liquidated by the Chapter 7 trustee to pay creditors. These typically include significant cash savings above the personal property limits, investment accounts (outside of retirement plans), second vehicles, vacation homes, and luxury goods above exemption limits. However, in practice, many Nevada filers in Chapter 7 have no non-exempt assets and receive a “no-asset” discharge, meaning creditors receive nothing and the filer keeps everything.

How Exemptions Differ Between Chapter 7 and Chapter 13

In Chapter 7 bankruptcy, exemptions determine which assets are safe from liquidation. In Chapter 13 bankruptcy, exemptions work differently: the “best interest of creditors” test requires that unsecured creditors receive at least as much in your repayment plan as they would have received if your non-exempt assets had been liquidated in Chapter 7. If you have substantial non-exempt equity in property, Chapter 13 may be a better option — it allows you to keep non-exempt assets while paying creditors over time.

Choosing between Chapter 7 and Chapter 13 depends on many factors, and this decision deserves careful analysis with an experienced Nevada bankruptcy attorney.

Protect Your Assets — Call Marathon Law Group

Marathon Law Group helps Las Vegas residents understand their rights in bankruptcy. Learn more about how to file for bankruptcy in Las Vegas. and make informed decisions about how to protect their property. With 45 years of combined legal experience, our attorneys explain Nevada’s exemption system clearly and develop strategies that maximize what you keep.

Call us at (702) 522-1808 or contact us online for a free bankruptcy consultation. Our office is located at 2012 Hamilton Ln, Las Vegas, NV 89106, and we serve the entire Las Vegas Valley.

Marathon Law Group | 2012 Hamilton Ln, Las Vegas, NV 89106 | (702) 522-1808 | marathonlawgroup.com