Will I lose my house or car if I file for bankruptcy?
Filing for bankruptcy is a serious decision that can have lasting negative as well as positive affects on the individual or couple filing. A common concern for those considering filing for bankruptcy is the threat of losing valuable assets such as their vehicles or homes.
The extent to which an individual’s assets are seized depends on many factors, foremost being the type of bankruptcy that one files for. Under Chapter 7 bankruptcy, since the individual filing doesn’t have the means to pay off their debt, their assets are typically seized and sold to recoup the funds needed to repay creditors. In the state of Nevada, not all assets apply. Nevada bankruptcy exemption laws determine which, if any, assets are exempt from the bankruptcy process.
Home and vehicle bankruptcy exemptions under Nevada State Law:
- Homestead Exemption – Up to $550,000 in equity in a home
If an individual filing for bankruptcy has less than $550,000 of equity in their home, that property is protected and therefore exempt from the bankruptcy filing.
- Motor Vehicle – Up to $15,000 in equity in a motor vehicle
If an individual filing for bankruptcy has less than $15,000 of equity in their car that vehicle is protected and therefore exempt from the bankruptcy filing.
Nevada bankruptcy exception laws protect many other important personal assets to some degree, including but not limited to: personal property, public benefits, retirement accounts and benefits, wages and income, and various tools of the trade.
For individuals with more equity, or non-exempt assets, filing under Chapter 13 bankruptcy may help keep possession of one’s assets. Under Chapter 13, an individual essentially reorganizes their debt into more manageable payment plans typically spreading out across the next three to five years. While the individual may have to pay the amount equal to their nonexempt assets, the assets themselves will not be seized or sold as long as payments are made.
Considering filing for bankruptcy? Our experienced attorneys can help guide you at any stage. For questions, or to set up a meeting, contact our office at (702) 998-1188 of firstname.lastname@example.org.