Filing for bankruptcy can be a difficult decision, but for many people, it’s the first step toward financial freedom. One of the biggest concerns individuals have before filing is, “Will I lose everything I own?”
The good news is that Nevada law allows you to protect many of your assets through bankruptcy exemptions. These exemptions are designed to ensure that while you address your debts, you’re still able to maintain basic living necessities and rebuild your financial life.
Understanding what assets are protected in a Nevada bankruptcy filing can help you make informed decisions and approach the process with confidence.
Understanding Bankruptcy Exemptions
When you file for bankruptcy, your assets become part of what’s known as the “bankruptcy estate.” However, not all of your property is at risk. Exemption laws — specific to each state — determine which of your assets you can keep.
Nevada has some of the most generous exemption laws in the country, designed to protect individuals and families from losing essential property. These exemptions apply to both Chapter 7 (liquidation) and Chapter 13 (repayment) bankruptcy cases, though how they’re used may differ slightly.
1. Nevada Homestead Exemption
Your home is often your most valuable asset — and Nevada law provides strong protection for it.
Under the Nevada Homestead Exemption, you can protect up to $605,000 of equity in your primary residence (as of 2025). This means that if your home’s equity is less than that amount, it cannot be sold to pay creditors during bankruptcy.
To qualify, you must:
- File a homestead declaration with your county recorder’s office.
- Ensure the property is your primary residence, not a rental or vacation home.
This exemption is particularly beneficial for homeowners who have built up equity but are facing financial hardship.
2. Vehicle Exemption
In Nevada, you’re allowed to protect up to $15,000 in equity for one motor vehicle.
This means that if your car’s value minus any outstanding loan balance is less than $15,000, it’s safe from liquidation. For disabled individuals, the exemption may be higher, ensuring mobility and independence are maintained.
3. Personal Property Exemptions
Nevada also allows you to keep various forms of personal property that are essential for daily living. These include:
- Household goods and furnishings: Necessary furniture, appliances, and household items are protected up to a reasonable value.
- Clothing: Your personal clothing and that of your family are exempt from seizure.
- Jewelry: Up to $5,000 in jewelry can be protected.
- Firearms: One firearm may be exempt up to a certain value.
These protections ensure that bankruptcy doesn’t strip away your ability to live comfortably and maintain dignity.
4. Wages and Income
Nevada law also protects a portion of your income from creditors. Generally, 75% of your weekly disposable earnings (or an amount equivalent to 50 times the federal minimum wage, whichever is greater) is exempt from garnishment.
This rule ensures you can continue meeting daily living expenses, such as rent, food, and transportation, while going through bankruptcy.
5. Retirement Accounts and Pensions
Retirement savings are one of the most important protections under Nevada bankruptcy laws.
Most tax-qualified retirement plans, such as 401(k)s, IRAs, and pension plans, are fully exempt. This means your retirement nest egg remains untouched, allowing you to safeguard your long-term financial future even as you manage current debts.
6. Tools of the Trade
If you rely on specific tools or equipment for your job or business, Nevada law allows you to protect up to $10,000 in tools of the trade.
This is especially valuable for self-employed individuals, contractors, and small business owners who depend on equipment or professional tools to earn a living.
7. Public Benefits and Insurance
Certain types of income and benefits are also protected under Nevada bankruptcy laws, including:
- Social Security benefits
- Unemployment compensation
- Workers’ compensation
- Disability benefits
- Public assistance and welfare payments
- Life insurance proceeds (in some cases)
These protections ensure that essential support funds remain available to sustain you and your family during financial recovery.
8. Wildcard Exemption
Nevada provides a “wildcard exemption” that allows you to protect up to $10,000 in any personal property of your choice.
This flexible exemption can be applied to assets not covered under other categories — for example, to protect additional vehicle equity, electronics, or savings accounts.
How These Exemptions Work in Practice
If you file for Chapter 7 bankruptcy, the trustee will assess your assets and determine which ones fall under Nevada’s exemptions. Exempt property is protected, while non-exempt property could be sold to pay creditors.
In Chapter 13 bankruptcy, you typically keep all your property but must pay creditors through a court-approved repayment plan based partly on the value of your non-exempt assets.
With the right legal guidance, you can use Nevada’s exemption laws strategically to safeguard what matters most while achieving meaningful debt relief.
Important Notes About Nevada Bankruptcy Exemptions
- Nevada residents must live in the state for at least 730 days (two years) before filing to use Nevada’s exemptions.
- Exemption limits can change, so it’s crucial to confirm current values before filing.
- Federal exemptions cannot be used in Nevada, as the state has opted out of the federal exemption system.
Final Thoughts
Bankruptcy doesn’t mean losing everything — far from it. Nevada’s exemption laws are designed to protect your home, car, income, and other essential assets while helping you regain financial control.
If you’re considering bankruptcy and want to understand how to best protect your property, the experienced attorneys at DeLuca & Associates Bankruptcy Law can guide you through every step of the process. Their team will help you navigate Nevada’s exemption laws to ensure you achieve maximum protection and a true financial fresh start.
