Thinking About Bankruptcy?
If an individual is contemplating declaring bankruptcy in Nevada, he or she will undoubtedly have some questions. One question that gets asked often is: Will I lose my car?
Nevada, like most states, allow for a list of items that are considered to be exempt from bankruptcy executions. For example, a residence, necessary household goods, and clothing is almost always exempt. If something is "exempt," it means that an individual is able to keep this property.
When considering bankruptcy, it is vital that you work with a professional who is experienced and knowledgeable on both federal and state bankruptcy laws. The attorneys at 702 DEFENSE are ready to help you with your bankruptcy proceedings.
Nevada State Law
NRS 21.090 speaks to property that is exempt from execution in a bankruptcy proceedings. Among other things, the law allows for a vehicle to be exempt. Specifically, section (f) states: Except as otherwise provided in paragraph (p), one vehicle if the judgment debtor's equity does not exceed $15,000 or the creditor is paid an amount equal to any excess above that equity.
Generally, the motor vehicle exemption in Nevada will cover one car, truck, or van.
However, Section (p) states: Any vehicle owned by the judgment debtor for use by the judgment debtor or the judgment debtor's dependent that is equipped or modified to provide mobility for a person with a permanent disability.
Other Policies and Exemptions
Nevada has instituted something known as a wildcard exemption. This allows an individual to use a total of $1,000 towards the exemption of any type of property. While $1,000 on its own will generally not allow you to keep a vehicle, an individual may add that $1,000 on top of the $15,000 vehicle limit. For example, if your car is worth $16,000, you can use the general $15,000 vehicle exemption provided in the statute and add the $1,000 wildcard value to it and be able to keep your $16,000 vehicle.
If an individual is married, there are further considerations. In Nevada, if a married couple files joint bankruptcy, the motor vehicle exemption is doubled and is now $30,000. An individual is also permitted to double the wildcard amount to $2,000.
Contact a Bankruptcy Attorney
Bankruptcy laws get updated and revised on a fairly regular basis. It is important to be aware of the law in order to ensure you take advantage of the proper exemptions and rights that go along with bankruptcy proceedings.
A competent bankruptcy attorney works hard to stay up-to-date on any changes related to Nevada bankruptcy and Federal bankruptcy law. This is a difficult time for clients. You are not expected to understand all the different details and nuances of the law. Reach out to an attorney who can help.
The bankruptcy attorneys at 702 DEFENSE have helped numerous clients who have dealt with different kinds of bankruptcy matters. If you are looking to file bankruptcy in Nevada, contact 702 DEFENSE today to schedule a free consultation.