What Properties Are Exempt As Per Nevada Bankruptcy Laws?

Posted: 04 Feb 2008 | Categories: Bankruptcy

Like most of the other states, Nevada also follows specific set of Nevada bankruptcy laws. Therefore, if you are a permanent resident of Nevada or the primary place of your business has been Nevada, and you are planning to file court petition for insolvency in the bankruptcy court, it is important for you to be aware of the specific laws that the state follows. You should note that the liquidation code is all the same in all the states of America. In particular, you must note the way the various properties exemptions have been interpreted in the state.

Nevada is one of those few states in America that follows a very liberal attitude towards debtors especially when it is about exempting the various properties. Following are the various exempt properties as per the impoverishment rules and regulations.

Residential Properties Exemption

The maximum amount that is exempt under the homestead properties category is $125,000. The homestead properties include both real and mobile residential properties. However, here, you should note that even if you were filing bankruptcy as husband and wife, you would be able to exempt only up to $125,000. You will not get exemption of the double amount. What is more, it is also mandatory for you to declare the homestead properties before you go ahead and file for impoverishment.

Insurance Exemptions

As per the Nevada laws, the insurance funds that are exempt include Health proceeds or avails, Group life or health policy or proceeds, fraternal benefit society benefits, etc. After the new bankruptcy laws have come into effect, you are also allowed to exempt Life insurance policy or proceeds, but only if the annual premiums do not exceed one thousand dollars.

Personal Properties Exemptions

The Nevada bankruptcy laws have declared motor vehicles and books as exempt personal properties up to the amount of fifteen hundred dollars each. However, if the vehicle has been equipped to provide mobility for disabled person, there is no upper limit as the exempt amount. Other exempt personal properties include keepsakes and pictures, health aids, Funeral service contract money held in trust, burial plot purchase money held in trust, etc.

Wild Card And Wages Exemptions

Nevada is one of those few states where wild card exemptions are not allowed. However, you can still exempt a minimum of 75% of earned but unpaid wages.

Tools Of Trade Exemptions

As per the state liquidation rules, the tools of trade exemptions include Library , equipment, supplies, tools and materials up to $4500; and farm trucks, stock, tools, equipment and seed up to $4500. The bankruptcy court in Nevada also allows you to exempt any arms, uniforms and accouterments that you are required to keep.

Nevada bankruptcy laws have been considered very liberal for the debtors. The bankruptcy code in Nevada allows the debtors declared as bankrupt to exempt lots of properties in different categories. Even the introduction of the new bankruptcy laws has not make things complicated for the debtors in the state of Nevada. For more information visit filing bankruptcy.

Article Author :Asheesh_Mani