- Nevada has a generous real property, or homestead exemption. You may keep your home in a bankruptcy if it is valued under $550,000. If you own an expensive home or have a large amount of equity, this makes it much easier to file knowing that you won't lose your home in a Chapter 7 bankruptcy.
- A Chapter 13 bankruptcy in Nevada is similar to a Chapter 13 in other states. This is a court supervised plan that allows you to re-pay all of your debts over the course of three to five years. Chapter 13 is a good method to re-structure debt payments and allow you to catch up on some of them. Debts that can not be discharged, such as taxes or child support, can be included in the Chapter 13 repayment plan. This allows you to get them current over time. Home mortgages are the same way, in that you can catch up past due payments over the term of the repayment plan.
- In addition to the generous homestead exemption, Nevada offers other protections for property that you own in the event of bankruptcy. A vehicle valued up to $15,000 is exempt from seizure by the trustee. This compares to the federal bankruptcy exemption for a vehicle of $2,250. Nevada also has a household goods exemption of $12,000, and up to $10,000 in tools of your trade are safe as well. A Chapter 7 bankruptcy is usually preferable to a Chapter 13 if your assets are covered under Nevada exemptions, and if you qualify based on income.
- To qualify for a Chapter 7 bankruptcy, you must be able to pass a means test. One of the things that this test looks at is your family income. In Nevada, a family of four must earn less than $69,371, or the median income amount for Nevada. The median income for any state is updated often, but changes are gradual. Eligibility for a Chapter 13 is not dependent upon median income.
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