Exempt Property in Reno Bankruptcy
The bankruptcy attorneys at Darby Law Practice in Reno help people achieve freedom from overwhelming debt with the help of Chapter 7 bankruptcy. Some people may have heard about Chapter 7 as liquidation bankruptcy and are afraid that they will have to sell off all their property before they can obtain a bankruptcy discharge of their debt. This is actually quite far from the truth. In fact, Nevada law provides such a host of property exemptions that most people come out of a Chapter 7 bankruptcy with most of their debt discharged and without having to sell off any of their property. This is known as a “no-asset” bankruptcy and is quite common.
Nevada Exemption Laws
All states have exemption laws which place certain property beyond the reach of creditors, but Nevada law is one of the most beneficial or generous to individuals being hounded by creditors in terms of exempt property. For example, Nevada’s homestead exemption allows you to protect up to $550,000 worth of value or equity in your primary residence. In other words, if you own a home free and clear and it’s worth $550,000 or less, creditors can never take that home from you. Likewise, a home with debt against it, but with equity under $550,000, cannot be taken through the recording of the lien by a judgment creditor.
In addition to the Nevada homestead exemption, there are many other types of exemptions under Nevada law. Nevada bankruptcy law allows each resident to protect up to $15,000 in value or equity in their primary automobile. Nearly all household goods, furniture, family heirlooms, clothing, personal jewelry and retirement accounts are also exempt from creditors in bankruptcy. Life insurance policies are usually exempt, as well as 529 college savings plans. As to wages, Nevada law allows you to shield 75% of your income from creditors. There is also a $1,000 wildcard exemption to cover anything you wish to keep which is not otherwise exempt. An experienced Reno bankruptcy lawyer can help you understand how these and other exemptions apply to you and your personal assets.
Reno Bankruptcy Attorneys
The bankruptcy laws are written to protect the consumer and offer a fresh start to individuals and families who have run into financial difficulty. Contact Darby Law Practice in Reno for a free consultation with an experienced bankruptcy attorney regarding your personal situation. We can help you find the best solution in your individual case, whether it is Chapter 7, Chapter 13, or a non-bankruptcy option such as a loan modification or debt settlement. Contact Darby Law Practice today for your free consultation.