If you are considering bankruptcy, your first thought is likely how filing will affect your property. And for Nevada homeowners, the largest and most important asset they own is their home. Thankfully, Nevada has a homestead exemption that homeowners may use to protect that asset in bankruptcy. But like with most exemptions, the protection provided by Nevada's homestead exemption isn't limitless.
One type of property the exemption can't be used on is rental or vacation property. That doesn't mean there aren't other options for protecting those assets in bankruptcy. To discuss your options with an experienced Nevada bankruptcy attorney, contact Vohwinkel Law today.
The Homestead Exemption in Nevada
In many bankruptcies, the largest exemption available under Nevada law is the homestead exemption. The homestead exemption will let you protect up to $550,000 in equity for your primary residence. Some types of property you can use your homestead exemption on include:
- Residential homes
- Mobile homes
It is important to understand that the exemption applies to the equity in your home, not the value. Equity is the amount your home is worth less what you owe on the mortgage. In cases where you owe more on your home than what it's worth, you have no equity to begin with. That means for the vast majority of Nevada homeowners that file for protection under Chapter 7 or Chapter 13 of the bankruptcy code will be able to protect their entire home from most creditors.
Can I use the Nevada homestead exemption for a rental property?
No. Under Nevada law, the homestead exemption may only be used on your primary residence. If you own multiple properties, you will only be able to apply your homestead exemption to the one that you call home. That means that you will be unable to protect any equity you have in a rental property or vacation home with the homestead exemption.
You will also only be able to use one homestead exemption even if you are filing jointly with a spouse. While in most cases spouses that file jointly can use a double exemption, this is not the case with the homestead exemption. A couple will be required to apply their homestead exemption to their primary place of residence.
Let a Nevada Bankruptcy Attorney Answer your Exemptions Questions
When it comes to filing for bankruptcy protection in the State of Nevada, there are a lot of possibilities regarding exemptions for your property. The homestead exemption is one important part of the process, but there are dozens of other exemptions that may apply to everything from your tools of the trade to your automobile. If you fail to take advantage of an exemption you are entitled to, you risk overpaying your creditors more than what they are entitled to.
To protect your assets during your Nevada bankruptcy, contact attorney Rory Vohwinkel to discuss your options. Rory Vohwinkel has a long history of helping his clients get the most out of the bankruptcy process. Contact Vohwinkel Law to set up your free consultation today.