Nevada Bankruptcy Guide

Nevada Bankruptcy Overview

Nevada offers very generous bankruptcy protections, featuring one of the highest homestead exemptions in the nation at $605,000 and a substantial $15,000 vehicle exemption. Understanding Nevada's specific exemptions and requirements is crucial for protecting your assets during bankruptcy proceedings.

Nevada law requires that you use Nevada state exemptions rather than federal exemptions if you've lived in Nevada for at least 730 days (two years) before filing. Nevada's exemptions are significantly more protective than federal exemptions in most categories, making this requirement beneficial for most Nevada residents. This guide covers everything you need to know about filing Chapter 7 or Chapter 13 bankruptcy in Nevada.

2026 Nevada Median Income for Chapter 7 Bankruptcy

To qualify for Chapter 7 bankruptcy in Nevada, your household income must generally be at or below the state median income for your household size. If your income exceeds these thresholds, you may still qualify through the means test or may need to file Chapter 13 instead.

Nevada Bankruptcy Exemptions

Exemptions determine what property you can keep when filing bankruptcy. Nevada has its own set of exemptions, and you must use Nevada state exemptions if you've lived in Nevada for at least two years before filing. Nevada does not allow you to choose federal exemptions. Below are the most important exemptions for Nevada filers.

Nevada Homestead Exemption

Up to $605,000.

Nevada's homestead exemption is one of the highest specific-dollar exemptions in the United States at $605,000 of equity in your primary residence. This exemption was significantly increased in recent years to reflect Nevada's rising home values, particularly in the Las Vegas and Reno metropolitan areas.

To claim the homestead exemption:

• The property must be your primary residence
• You can protect up to $605,000 in equity (market value minus mortgages and liens)
• The exemption applies to houses, condominiums, mobile homes, and any dwelling you use as your principal residence
• You must record a Declaration of Homestead with the county recorder before filing bankruptcy to claim the exemption

Nevada Vehicle Exemption

Up to $15,000 in value (or $30,000 if the vehicle is equipped for a person with a disability).

Nevada offers a generous vehicle exemption of $15,000 of equity in one motor vehicle. This is equity—meaning the vehicle's fair market value minus what you owe on any car loans. For example, if your car is worth $22,000 and you owe $10,000, your equity is $12,000, which is fully protected.

If the vehicle has been equipped or modified for use by a person with a disability, the exemption increases to $30,000—one of the highest disability vehicle exemptions in the nation.

Nevada Personal Property Exemptions

Nevada provides specific exemptions for various types of personal property:

• Household Goods and Furnishings: Up to $12,000 total for furniture, appliances, electronics, clothing, and other household goods
• Jewelry: Up to $5,000 total (including wedding rings and all jewelry)
• Firearms: Up to $5,000 for firearms
• Library: Up to $5,000 for books, works of art, and musical instruments
• Tax-Exempt Retirement Accounts: Unlimited protection for 401(k)s, IRAs (subject to federal limits around $1.5 million), pensions, and other qualified retirement plans
• Health Savings Accounts: Up to $1,000,000 for health savings accounts
• Life Insurance: Unlimited cash value and proceeds if the insured is the debtor or someone upon whom the debtor is dependent
• Tools of Trade: Up to $10,000 for tools, equipment, materials, library, and supplies used in your occupation
• Professional License: Unlimited protection for professional licenses and certificates

Nevada Wage and Income Exemptions

• Wages: Up to 82% of disposable weekly earnings (Nevada offers stronger wage protection than the federal 75% standard)
• Social Security Benefits: Unlimited protection
• Veterans Benefits: Unlimited protection
• Unemployment Benefits: Unlimited protection
• Workers' Compensation: Unlimited protection
• Disability Benefits: Unlimited protection
• Public Assistance: Unlimited protection for welfare and public assistance benefits
• Child Support and Alimony: Unlimited protection for child support and alimony payments needed for support

Nevada vs. Federal Exemptions

Unlike some states that allow bankruptcy filers to choose between state and federal exemptions, Nevada requires that you use Nevada state exemptions if you meet the residency requirements (730 days living in Nevada before filing).

The federal exemption system is not available to Nevada residents. This is actually beneficial for Nevada filers because:

• Nevada's $605,000 homestead exemption vastly exceeds the federal homestead exemption (currently $27,900, or $55,800 for married couples)
• Nevada's $15,000 vehicle exemption is significantly higher than the federal $4,450 vehicle exemption
• Nevada's personal property exemptions are generally more generous across categories

Nevada Bankruptcy Court

Nevada has a single federal bankruptcy court district that covers the entire state. The U.S. Bankruptcy Court for the District of Nevada has courthouses in multiple cities to serve residents throughout the state.

District of Nevada Court Locations

The District of Nevada has three courthouse locations:

• Las Vegas: 300 Las Vegas Boulevard South, Las Vegas, NV 89101 (Main Courthouse)
• Reno: 300 Booth Street, Reno, NV 89509
• Carson City: 800 South Stewart Street, Carson City, NV 89701 (Limited hearings)

Cost of Filing Bankruptcy in Nevada

The total cost of filing bankruptcy in Nevada includes both court filing fees and attorney fees. Here's what to expect:

Court Filing Fees (2026)

• Chapter 7: $338
• Chapter 13: $313

These fees are set by federal law and are the same nationwide. In Chapter 7, you may be able to request a fee waiver if your income is below 150% of the federal poverty line, or you may request to pay the filing fee in installments over 120 days.

Attorney Fees in Nevada

Attorney fees for bankruptcy in Nevada vary by location, case complexity, and the attorney's experience. Here are typical ranges by city:

• Las Vegas: $1,200 - $2,000 for Chapter 7; $3,000 - $4,500 for Chapter 13
• Henderson: $1,200 - $2,000 for Chapter 7; $3,000 - $4,500 for Chapter 13
• Reno: $1,100 - $1,800 for Chapter 7; $2,800 - $4,200 for Chapter 13
• Sparks: $1,100 - $1,800 for Chapter 7; $2,800 - $4,200 for Chapter 13
• North Las Vegas: $1,100 - $1,900 for Chapter 7; $2,900 - $4,400 for Chapter 13
• Carson City: $1,000 - $1,700 for Chapter 7; $2,700 - $4,000 for Chapter 13

Chapter 13 attorney fees are typically paid through your repayment plan over 3-5 years, making bankruptcy more accessible even if you cannot afford the full fee upfront. Many Chapter 7 attorneys also offer payment plans for their fees.

Nevada-Specific Bankruptcy Considerations

Nevada's No-Income-Tax Status

Nevada is one of the few states with no state income tax. This can benefit bankruptcy filers in several ways. When completing the means test for Chapter 7 qualification, you won't have state income tax deductions reducing your disposable income. Additionally, you won't face state tax debts in bankruptcy, simplifying your case.

Gambling and Casino Industry Employment

Given Nevada's significant gambling and casino industry, it's worth noting that gambling debts are treated like any other unsecured debt in bankruptcy and can be discharged. However, if you incurred gambling debts immediately before filing bankruptcy (particularly using credit cards or cash advances), creditors may object to discharge based on fraud. Generally, it's advisable to wait at least 90 days after incurring gambling debts before filing bankruptcy.

For those employed in the casino industry, tips and wages are protected under Nevada's wage exemption (82% of disposable earnings). Your professional gaming license is also fully protected under Nevada's professional license exemption.

Community Property State

Nevada is a community property state, meaning most property and debts acquired during marriage are owned equally by both spouses. This can affect bankruptcy in important ways:

• If one spouse files bankruptcy, community property may be used to pay community debts even if only one spouse filed
• Community debts (those incurred during marriage for the benefit of the community) can be discharged even if only one spouse files, protecting the non-filing spouse from collection
• Separate property (owned before marriage or received as a gift/inheritance) remains separate and is generally not available to pay the other spouse's separate debts

Homestead Declaration Process

To claim Nevada's $605,000 homestead exemption, you must file a Declaration of Homestead with your county recorder before filing bankruptcy. The process involves:

1. Completing a Declaration of Homestead form (available from your county recorder)
2. Having the form notarized
3. Recording the form with the county recorder where your property is located
4. Paying a small recording fee (typically $20-$50)

Many bankruptcy attorneys will help you complete and file this declaration as part of their bankruptcy preparation services. If you haven't filed a declaration before bankruptcy, consult with an attorney about your options.

High Home Values in Las Vegas and Reno

Nevada's $605,000 homestead exemption was designed to address the high cost of housing in the Las Vegas and Reno metropolitan areas. If you own a home in these markets with significant equity, Nevada's exemption provides excellent protection. Even homes that were underwater during the 2008-2012 housing crisis may now have substantial equity due to the recovery in Nevada real estate values.

Nevada Bankruptcy FAQs

How long does Chapter 7 bankruptcy take in Nevada?

A typical Chapter 7 bankruptcy case in Nevada takes about 4-6 months from filing to discharge. The 341 Meeting of Creditors usually occurs 30-45 days after filing, and the discharge is typically granted 60-90 days after the meeting, assuming no complications or objections arise.

Can I keep my home in Nevada bankruptcy with a $605,000 homestead exemption?

Yes, if your home equity doesn't exceed $605,000. You must have filed a Declaration of Homestead with your county recorder before filing bankruptcy, owned the property for at least 1,215 days, and continue making mortgage payments if you have a home loan. If you're behind on mortgage payments, Chapter 13 may be a better option to catch up while keeping your home.

Do I need to file a homestead declaration before bankruptcy in Nevada?

Yes, Nevada requires you to record a Declaration of Homestead with your county recorder before filing bankruptcy to claim the full $605,000 exemption. This is a simple form that costs a small recording fee. Many bankruptcy attorneys help clients file this declaration as part of bankruptcy preparation. Without it, you may be limited to a smaller exemption amount.

Can I protect a $12,000 car in Nevada bankruptcy?

Yes, absolutely. Nevada's vehicle exemption is $15,000 in equity, so a vehicle with $12,000 in equity (or $12,000 in value if owned free and clear) is fully protected. This is one of the higher vehicle exemptions in the nation and allows Nevada residents to protect newer, more valuable vehicles during bankruptcy.

What happens to gambling debts in Nevada bankruptcy?

Gambling debts are treated like other unsecured debts and can generally be discharged in bankruptcy. However, if you incurred gambling debts immediately before filing (especially using credit cards or cash advances), creditors may object to discharge based on fraud. It's generally advisable to wait at least 90 days after incurring gambling debts before filing bankruptcy and to consult with a Nevada bankruptcy attorney about your specific situation.

Do I have to use Nevada exemptions or can I use federal exemptions?

If you've lived in Nevada for at least 730 days (two years) before filing bankruptcy, you must use Nevada state exemptions. Nevada does not allow filers to choose federal exemptions. This is beneficial because Nevada exemptions ($605,000 homestead, $15,000 vehicle) are generally much more protective than federal exemptions.

How does Nevada's community property law affect bankruptcy?

In Nevada, most property and debts acquired during marriage are community property owned equally by both spouses. If one spouse files bankruptcy, community property may be used to pay community debts. However, community debts can often be discharged even if only one spouse files, protecting the non-filing spouse. Community property issues can be complex, so consult with a Nevada bankruptcy attorney about how this affects your situation.

Can I file bankruptcy on my own in Nevada without an attorney?

While it's legally possible to file bankruptcy without an attorney (called filing "pro se"), it's generally not recommended. Bankruptcy law is complex, and Nevada-specific requirements like the homestead declaration make professional guidance valuable. Mistakes can result in losing property you could have protected or having your case dismissed. Most Nevada attorneys offer free or low-cost initial consultations.

How does bankruptcy affect my credit score in Nevada?

Bankruptcy will negatively impact your credit score initially, typically dropping it by 130-200 points for those with previously good credit. A Chapter 7 bankruptcy remains on your credit report for 10 years, while Chapter 13 remains for 7 years. Many Nevada filers find they can qualify for new credit within 2-3 years after discharge, especially if they practice good credit habits post-bankruptcy.

How much does it cost to file bankruptcy in Nevada?

The court filing fee is $338 for Chapter 7 and $313 for Chapter 13. Attorney fees in Nevada typically range from $1,000-$2,000 for Chapter 7 and $2,700-$4,500 for Chapter 13, depending on your location (Las Vegas tends to be higher than rural areas) and case complexity. Many attorneys offer payment plans, and Chapter 13 attorney fees are usually paid through your repayment plan over time.

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