When you file for bankruptcy in Nevada, exemptions determine which of your assets you get to keep. Nevada has some of the most generous bankruptcy exemptions in the country — which means most people who file here walk away from the process with everything they own intact.
Understanding which exemptions apply to your situation is one of the most important steps in the bankruptcy process. Dan Riggs spent more than a decade as the senior attorney to a Chapter 13 Bankruptcy Trustee in Nevada, which means he understands exactly how trustees evaluate assets — and how to make sure your property is fully protected.
Nevada vs. Federal Exemptions
Unlike some states, Nevada does not allow bankruptcy filers to choose between state and federal exemptions. If you file bankruptcy in Nevada, you must use Nevada’s state exemptions. Fortunately, Nevada’s exemptions are among the strongest in the nation — in many cases exceeding what the federal exemptions would provide.
Nevada’s Key Bankruptcy Exemptions
Homestead (Primary Residence) — Up to $605,000
Nevada’s homestead exemption protects up to $605,000 in equity in your primary residence — one of the highest homestead exemptions in the United States. To claim it, you must have recorded a Declaration of Homestead with the county recorder’s office before your bankruptcy filing date. If you haven’t filed one yet, speak with Dan Riggs as soon as possible.
Motor Vehicle — Up to $15,000
Nevada protects up to $15,000 in equity in one motor vehicle per debtor. If you and your spouse both file, you can each claim the exemption on separate vehicles. The exemption applies to your equity — meaning the vehicle’s current market value minus what you still owe on the loan.
Retirement Accounts — Fully Protected
ERISA-qualified retirement accounts — including 401(k)s, 403(b)s, pensions, and most IRAs — are fully exempt in Nevada with no dollar cap. Your retirement savings are protected entirely. This is one of the most important exemptions for working Nevadans filing bankruptcy, and it means filing will not put your future financial security at risk.
Household Goods and Furnishings — Up to $12,000
Nevada protects up to $12,000 in household furniture, appliances, and goods used in your home. For most filers, this covers everything in the house — trustees value household goods at garage sale prices, not replacement cost.
Clothing — Up to $2,000
Up to $2,000 in clothing for you and your dependents is fully protected. In practice, ordinary clothing is almost never at risk in a Nevada bankruptcy.
Tools of Trade — Up to $4,500
If you are self-employed or rely on specific equipment for your work, Nevada protects up to $4,500 in tools, equipment, and materials used in your occupation or trade.
Health Aids — Fully Protected
All professionally prescribed health aids — wheelchairs, hearing aids, CPAP machines, and similar equipment — are fully exempt with no dollar limit.
Social Security, Unemployment & Workers’ Compensation — Fully Protected
All Social Security benefits, unemployment compensation, and workers’ compensation payments are fully exempt in Nevada bankruptcy. These cannot be taken by a trustee or used to satisfy creditors.
What Happens to Non-Exempt Property in Chapter 7?
In a Chapter 7 bankruptcy, the trustee reviews your assets and may liquidate any non-exempt property to pay creditors. In practice, the vast majority of Nevada Chapter 7 filers have no non-exempt property — the exemptions cover everything they own. If you do have valuable non-exempt assets, Chapter 13 bankruptcy may be a better path: it lets you keep everything while repaying creditors over three to five years.
How Exemptions Work in Chapter 13
In Chapter 13 bankruptcy, you keep all of your property — exempt and non-exempt — and repay creditors through a structured repayment plan. However, the value of your non-exempt assets determines how much unsecured creditors must receive. This is called the “best interest of creditors” test. Dan Riggs will run this analysis for you during your free consultation so there are no surprises.
Frequently Asked Questions About Nevada Bankruptcy Exemptions
Do I need to file a homestead declaration before filing bankruptcy?
Yes. To claim the full $605,000 homestead exemption, you must have recorded a Declaration of Homestead with the county recorder before your bankruptcy petition is filed. If you own your home and have not done this, contact us immediately — there may still be time to file one before your case is started.
Are IRAs protected in Nevada bankruptcy?
Yes. IRAs are protected in Nevada bankruptcy. For most filers, the entire IRA balance is exempt. Amounts rolled over from qualified plans receive full protection. There are some nuances for large IRAs with contributions made within the past 1,215 days — Dan Riggs will review your specific situation during your consultation.
What if I own two vehicles?
The motor vehicle exemption covers one vehicle per debtor. If you own a second car with significant equity, that equity may be non-exempt in Chapter 7. If this is a concern, Chapter 13 may allow you to keep both vehicles while paying creditors through a repayment plan.
Can I protect my business equipment?
Nevada’s tools of trade exemption protects up to $4,500 in business equipment and materials. If your business equipment is worth more than that, there may be additional planning options available. Contact the Riggs Law Firm to discuss your situation before filing.
Ready to find out exactly what you can keep? Contact Las Vegas bankruptcy attorney Dan Riggs for a free consultation. He will review your assets, apply Nevada’s exemptions to your specific situation, and tell you exactly what to expect before you file. Schedule your free consultation today or call 702-605-5070.