- Author: George Haines
- Published
Filing bankruptcy doesn’t mean losing everything—but it’s vital to understand what the law allows you to keep.
So, what assets are protected in bankruptcy in Nevada?
Nevada law protects essential assets in bankruptcy, including your home (up to $605,000 in equity), car, personal property, retirement accounts, and wages, under state-specific exemption rules.
At Freedom Law Firm, we’ve helped thousands of Nevadans eliminate debt while protecting the property that matters most. Below, we break down exactly what’s protected—and how.
What Are Bankruptcy Exemptions?
Bankruptcy exemptions are laws that allow you to keep certain property during Chapter 7 or Chapter 13 bankruptcy. These laws vary by state, and Nevada has its own exemption system, which must be used instead of federal exemptions.
Exempt assets are not subject to liquidation in Chapter 7 and are factored into your repayment plan in Chapter 13.
In Nevada, you must have lived in the state for at least 730 days (two years) before filing to use Nevada’s exemptions.
If you’re married and filing jointly, most exemption amounts can be doubled, including the homestead exemption.
Maximizing Your Exemptions: Strategic Planning Before Filing
Understanding what assets are exempt is only part of the process—knowing how to protect them before filing is just as critical. Here’s how to plan smartly:
Steps to protect your assets:
- File your homestead declaration early to secure your real estate exemption.
- Avoid repaying family or friends before filing—this may be considered a preferential transfer.
- Don’t transfer or sell assets prior to filing without legal advice—this may be seen as fraud.
- Separate exempt and non-exempt funds in different bank accounts.
- Document everything—especially income sources and asset values.
Freedom Law Firm offers pre-bankruptcy planning services to ensure your filing strategy is legally sound and maximizes protections.
Common Mistakes That Could Jeopardize Your Protected Assets
Even with strong exemption laws, a few errors can lead to the loss of otherwise protected property. Be cautious of these red flags:
- Failing to claim exemptions properly on your bankruptcy forms
- Commingling exempt funds, such as Social Security, with regular deposits
- Paying down certain debts (like personal loans to family) before filing
- Transferring property to friends or relatives right before you file
- Omitting assets or underreporting values on your bankruptcy petition
Courts and trustees can deny exemptions or even dismiss your case if they believe you’ve acted in bad faith. Working with an experienced attorney can help prevent costly mistakes.
Nevada Homestead Exemption: How Much Equity Can I Keep?
Nevada protects up to $605,000 in equity in your primary residence under the Nevada Homestead Exemption (NRS 115.010).
Key facts:
- Must be your primary residence
- Must file a homestead declaration to maximize protection
- Mobile homes qualify if they are owner-occupied and legally affixed
- Married filers may double the exemption, protecting up to $1.21 million in equity
If you have more than the exempt amount in equity, the bankruptcy trustee may attempt to sell the home and pay you the protected portion.
What Personal Property Is Protected in Nevada Bankruptcy?
Nevada offers generous protection for common personal property. Here’s what’s typically exempt:
| Asset Type | Exemption Amount |
|---|---|
| Motor vehicle | Up to $15,000 in equity |
| Motor vehicle (disability) | Fully exempt |
| Clothing | Unlimited |
| Household goods/furniture | Up to $12,000 total |
| Books, art, musical items | Up to $5,000 |
| Jewelry | Up to $5,000 |
| Personal injury award | Up to $16,150 |
| Wildcard (any personal property) | Up to $10,000 |
These limits apply to individual filers, and may be doubled for married couples filing jointly.
The wildcard exemption gives you flexibility to protect additional personal property not covered by specific categories.
Are Retirement Accounts Protected in Nevada?
Yes. Most tax-exempt retirement accounts are fully protected in bankruptcy.
Protected accounts include:
- 401(k)s
- Traditional and Roth IRAs
- 403(b) plans
- Government and public employee pensions
- SEP and SIMPLE IRAs
Nevada recognizes full protection for qualified plans, and federal law protects IRAs up to $1.5 million.
Are My Wages and Income Protected in Bankruptcy?
Your current wages are partially protected:
- 75% of disposable weekly earnings, or
- 50 times the federal minimum wage, whichever is greater
Social Security, unemployment, child support, and VA benefits are generally fully exempt.
Deposited wages and benefits should be kept in separate accounts to retain their exempt status.
What About Tools of the Trade or Business Property?
Self-employed workers and business owners can protect the tools they rely on. Nevada allows:
- Up to $10,000 in equipment, tools, books, or instruments used in your occupation
This exemption supports tradespeople, freelancers, and independent contractors who need assets to continue working.
Is My Car Protected in Nevada Bankruptcy?
Yes. Nevada’s motor vehicle exemption covers:
- Up to $15,000 in equity for one standard vehicle
- Unlimited exemption if the vehicle is specially equipped for a disability
To determine your equity: subtract your loan balance from the vehicle’s fair market value.
Are Bank Accounts and Cash Exempt in Nevada?
Cash exemptions are limited:
- Up to $2,000 in a single checking or savings account is exempt
- Public benefit deposits (e.g., Social Security) are exempt if not commingled with non-exempt funds
Always keep exempt funds separate and clearly labeled to avoid legal issues
Do Chapter 7 and Chapter 13 Treat Exemptions Differently?
Yes. Exemptions serve different roles in each chapter:
| Bankruptcy Chapter | How Exemptions Work |
| Chapter 7 | Trustee may sell non-exempt assets; you keep exempt assets |
| Chapter 13 | You keep all assets but must repay creditors for non-exempt value |
Exemptions help you protect property in Chapter 7 and reduce repayment in Chapter 13.
What to Know About Filing for Bankruptcy in Nevada
Understanding exemptions is just one step in the bankruptcy process. Here’s what else you need to know:
- You must have lived in Nevada for at least 730 days to claim Nevada exemptions
- Credit counseling from an approved agency is required before filing
- Filing fees: $338 for Chapter 7 and $313 for Chapter 13 (as of 2024)
- Attorney fees: $1,500–$2,500 for Chapter 7, more for Chapter 13 depending on complexity
- Chapter 7 typically lasts ~4 months; Chapter 13 takes 3–5 years
- You can lose non-exempt assets in Chapter 7 or repay their value in Chapter 13
- Secured creditors can still repossess property if you don’t stay current on payments
- Bankruptcy triggers an automatic stay, immediately stopping collection efforts
It’s highly recommended to work with a bankruptcy attorney—especially for Chapter 13 filings, which are more complex.
Protect What Matters Most—Get Trusted Legal Guidance
Filing for bankruptcy doesn’t mean losing everything. With the right planning and legal help, you can protect your home, car, income, and retirement—and eliminate your debt for good.
Call Freedom Law Firm at (702) 819-8692 or schedule your free consultation today.
We’ll walk you through your options, maximize your exemptions, and help you rebuild with peace of mind.
Further Reading:
- Can You Transfer Assets to Friends and Family Before You File Bankruptcy in Las Vegas?
- What Is “Bankruptcy Protection?”
- Pre-Bankruptcy Protection: The Fair Debt Collections Practices Act
- Nevada Consumer Financial Protection Overview
Resources:
- Nevada Homestead Exemption – NRS 115.010
- Nevada Bankruptcy Exemptions – NRS Chapter 21
- U.S. Bankruptcy Court – District of Nevada
- Federal Bankruptcy Exemption Guidelines
FAQs About Bankruptcy Asset Protection in Nevada
What assets can I keep if I file Chapter 7 in Nevada?
You can keep your home (up to $605,000 equity), car (up to $15,000 or fully exempt for disability), retirement accounts, personal injury awards, and household items if they fall within exemption limits.
Is my house safe in bankruptcy in Nevada?
Yes—if your equity is under $605,000 (or $1.21M if married filing jointly) and you file a homestead declaration.
Will I lose my car if I file for bankruptcy in Nevada?
No, if your equity is under $15,000 or it’s modified for a disability, in which case it’s fully exempt.
What is the wildcard exemption in Nevada?
Nevada allows you to protect up to $10,000 in personal property of your choice, not covered by other exemptions.
Can creditors take my 401(k) or IRA in bankruptcy?
No. Retirement accounts are fully exempt, including 401(k), IRA, SEP, and government pensions.
Do exemptions apply differently in Chapter 13?
Yes. You keep all assets in Chapter 13 but must pay creditors at least the value of your non-exempt property through your repayment plan.
Who qualifies for Chapter 7 vs. Chapter 13 in Nevada?
Chapter 7 is available if your household income is below the median. Chapter 13 has debt limits: under ~$419,275 unsecured and ~$1.26M secured (adjusted periodically).
