Following is a list of the main exemptions that may be used in Nevada bankruptcy cases, along with a brief explanation of each exemption. Only Nevada statutes that define and specify the exemptions may be applied since Nevada has chosen not to permit its inhabitants to take advantage of the federal exemptions.
It is best to seek legal advice to learn about all potential exemptions that could be used, which may include:
- Farmhouse (equity in dwelling used as residence)
- Worth up to $550,000 (cannot double if married).
- Funds kept in trust for a burial plot or funeral services.
- Automobile Equity
- A single car with a value of up to $15,000.
- There is no restriction if the car is disabled-accessible.
- Individual Property
- Household items up to a value of $12,000, such as photos of the family, clothes, and school supplies.
- Books, jewelry, musical instruments, and artwork with a maximum value of $5,000.
- Income must be the larger amount between 75% of wages or 50 times the federal minimum wage.
- Up to $16,500 may be awarded for personal injuries.
- The Tools of the Trade
- Amounting to $4,500 in farm machinery.
- Equipment for miners worth up to $4,500.
- Coverage
- Disability compensation
- Unmatured life insurance is often exempt as well, but there are some exceptions.
- Pensions
- Benefits under ERISA are required for support.
- Retirement perks for government employees
- Public Goods
- Compensation for crime victims
- Unemployment
- Employee compensation
- Children’s public assistance
- Security benefits
- Perks for veterans
- Child and Alimony Support
- Amount reasonably required for the debtor’s and their dependents’ maintenance.
What Are Cases of Consumer Bankruptcy?
A proof of claim is the most common route for creditors to get involved in a consumer bankruptcy proceeding. In a Chapter 7 bankruptcy, a properly filed proof of claim may allow the creditor to collect payment under a proposed plan or a portion of the proceeds from the bankruptcy estate’s liquidation (under a Chapter 13 Bankruptcy).
A Proof of Claim is What?
A proof of claim demonstrates the validity and amount of the debt the debtor owes the creditor (i.e., the person who owes a debt). If no complaints are made, correctly filed claims are deemed to be true. Because of this, the creditor does not actually need to prove that the debtor owes a debt.
Unsecured creditors, or those without a lien on the debtor’s assets, won’t receive payment from the bankruptcy estate unless a legitimate proof of claim is made. Within ninety days of the scheduled date for the first meeting of creditors, proofs of claim must be filed.
How Does Chapter 7 Insolvency Operate?
Chapter 7 bankruptcy, also referred to as “liquidation bankruptcy,” allows a debtor to discharge all liabilities that are allowed under the law. Who may apply for Chapter 7 bankruptcy, how to do so, and what types of debts may be discharged are all subject to rules.
To be eligible for a Chapter 7 bankruptcy petition, the applicant’s income must be equal to or lower than the state’s median income. States have different minimum income requirements. The court will apply a “means test” based on the person’s salary for the past six months if their income is above the cutoff. If a person has the means to pay off their obligations, they cannot file for Chapter 7 bankruptcy.
Every time a person files for Chapter 7 bankruptcy, the court will impose an automatic stay. This action prevents debt collectors from attempting to collect. It also halts any ongoing legal proceedings, wage garnishments, lien filings, and asset seizures.
The majority of the debtor’s assets are taken in Chapter 7 bankruptcy. The court appoints a trustee to oversee each case. The trustee will determine if the revenues from the sale of the property will be enough to pay creditors. The trustee will arrange a creditors’ meeting when the borrower completes and submits all required paperwork. The borrower normally only has to appear in court for this meeting. The case may be dismissed if the borrower does not appear or provide the required information.
After the creditors’ conference, the bankruptcy court will schedule a discharge meeting. During this meeting, the borrower’s unsecured obligation is discharged. A mortgage or car loan are two examples of obligations that might be handled differently.
When declaring bankruptcy, the debtor has four options for handling the debt:
- Reaffirming prior payment arrangements
- Returning the item
- Replacing the item or paying the creditor its replacement cost
- Agreeing to new payment terms with the creditor
Child support, tax debt (some federal tax debt may be erased if certain circumstances are met), fraudulently obtained debt, and student loans are some debts that continue even after a bankruptcy discharge unless a court determines that there is an unreasonable difficulty.
Once the bankruptcy procedure is over, creditors are not permitted to make an attempt or collect on debts that were discharged.
How Does Chapter 13 Insolvency Operate?
A borrower who files for Chapter 13 bankruptcy, often known as wage earner’s bankruptcy, can reorganize their debt and make easier to handle payments. Those with higher salaries who want to keep their homes frequently make this decision.
While certain debts may be dischargeable, others may need to be paid off completely throughout a payment plan, which is normally in place for three to five years.
The following conditions must be met in order to petition for Chapter 13 bankruptcy:
- They are a single person or a married couple, even whether they own their own business or work for themselves;
- Their total secured debts total $1,184,200 or less;
- Their total secured debts total $394,725 or less;
- They obtain credit counseling from a counselor who is approved within 180 days of filing their petition, and they haven’t recently had a bankruptcy petition dismissed for failing to appear in court or follow the guidelines.
It is always advisable to consult with an experienced bankruptcy lawyer because these regulations are subject to change.
Unlike Chapter 7 bankruptcy, which requires the debtor to stop paying payments, Chapter 13 bankruptcy permits the debtor to maintain or attempt to maintain the majority of their property. It’s critical to examine the advantages and disadvantages of filing for bankruptcy.
Like Chapter 7, Chapter 13 bankruptcy can affect your credit for up to 10 years after filing. The debtor must complete a Chapter 13 bankruptcy payment plan while adhering to a strict budget and refraining from using credit. Many borrowers miss payments on time.
Do I Require a Bankruptcy Attorney?
Even though the property would have been exempt had the exemption been submitted correctly, bankruptcy is a very complicated process, and submitting an exemption wrongly might result in the property being confiscated. When requesting exemptions, the Nevada bankruptcy exemption statute must be followed. A Nevada bankruptcy attorney is knowledgeable about the specifics of filing for bankruptcy and can advise you on the best chapter of bankruptcy.
Additionally, a bankruptcy attorney may make sure that your exemptions are properly submitted.
You must defend your own interests regarding claims made by creditors in situations covered by all Bankruptcy Code sections. Creditors may make claims, and you must refute them if you think they are unjustified.
A bankruptcy lawyer can help you refute claims made by creditors and recommend the right bankruptcy chapter for your situation. Find consumer legal services and bankruptcy attorneys using LegalMatch.
