Nevada Bankruptcy Exemptions — Protecting What Matters Most for Individuals and Families in Las Vegas

When people think about bankruptcy, one of the biggest fears they have is losing everything they own. It’s a common myth, and unfortunately one that keeps many people struggling under crushing debt from seeking help sooner than they should.

The truth is, bankruptcy is designed to help you protect your most important property while giving you a fresh start. Both federal and state laws provide exemptions, which are legal protections that let you keep certain assets safe from creditors and the bankruptcy trustee.

At Larson & Zirzow, our Las Vegas Chapter 7 bankruptcy lawyers help individuals and families use Nevada’s powerful exemptions to hold onto their homes, cars, retirement accounts, and many other assets so you can rebuild your life with the stability you need.

What Are Bankruptcy Exemptions?

Exemptions are laws that spell out what property you’re allowed to keep when you file for bankruptcy. They protect the basic things you need to live and work, like your house, your car, household goods and electronics, jewelry, musical instruments, retirement savings, social security and disability income, and certain personal injury awards.

When you claim an asset as exempt, it means the bankruptcy trustee can’t take it and sell it to pay your creditors. The goal of Chapter 7 bankruptcy is to wipe out burdensome debt while keeping as much property as you can to give you a fresh start.

Does Nevada Use Federal or State Exemptions?

Each state decides whether its residents can use federal exemptions or the state’s own exemptions. Nevada has opted out of the federal system, so if you’ve lived here for the required amount of time, you must use Nevada’s state exemptions when you file.

This means it’s critical to understand how Nevada’s unique laws work and how to use them fully and properly. At Larson & Zirzow, we make sure you claim every exemption you’re entitled to, so nothing slips through the cracks.

Key Nevada Bankruptcy Exemptions

Nevada’s exemption laws are among the most generous in the country, especially when it comes to protecting your home. Here are some of the most important exemptions Nevada residents rely on:

• Homestead Exemption: Nevada’s homestead exemption is one of its biggest advantages. It protects up to $605,000 of equity in your primary residence (as of 2025, amount adjusts periodically). That generally means if your home’s equity — the home’s value minus amounts owing on a mortgage — is within that limit, you can keep the home, even in a Chapter 7 bankruptcy.
• Motor Vehicle: You can protect up to $15,000 in equity in one vehicle. When spouses file bankruptcy together, two exemptions can be claimed to protect the equty in two different vehicles. This helps many people keep their cars so they can get to work and take care of their families.
• Household Goods and Other Personal Property: Nevada’s exemptions are so generous that, in most cases, they protect nearly all typical household goods and furnishings, appliances and electronics, clothing, and reasonable personal items. These exemptions cover the things you use every day, such as beds, tables, and clothing, so you don’t lose your basic necessities. But they also protect jewelry, musical instruments, and works of art up to certain amounts.
• Retirement Accounts: Most tax-qualified retirement accounts, such as 401(k)s, IRAs, and most pension plans including NVPERS, are fully exempt under federal law, which applies in Nevada as well. This means your future retirement savings are protected.
• Social Security and Disability: Both federal law and the Nevada exemptions protect payments received under the Social Secutiry Act, including social security retirement and survivor’s benefits, supplemental security income benefits, and disability insurance benefits.
• Personal Injury and Other Awards: Nevada allows you to protect certain amounts of compensation received for personal injuries, wrongful death, and loss of future earnings, and we help clients navigate the details of these exemptions carefully.
• Tools of the Trade: If you use specific tools or equipment for your job or profession, Nevada provides exemptions to help you keep what you need to continue earning a living.

How Exemptions Work in Practice

Here’s how it works: when you file for bankruptcy, you list all of your assets — everything you own — on your bankruptcy schedules. Then, for each asset, you claim the appropriate exemption.

For example, if the home you own and live in is worth $500,000 with a $300,000 mortgage, you have $200,000 in equity. Because Nevada’s homestead exemption protects up to $605,000 in equity, all of that equity is safe, and you keep your home as long as you continue paying your mortgage. Even if your home equity exceeds the exemption amount, it might not be worthwhile for a bankruptcy trustee to spend the time and effort to try to sell the property for only a modest return, and that’s an argument your lawyer can make to the trustee.

If you own a car outright worth $10,000, the motor vehicle exemption protects all its value. If you have a personal injury settlement pending, we carefully examine how much of it is protected under Nevada’s personal injury exemption, and we examine the proposed settlement to see if certain aspects can be reframed to maximize your recovery under Nevada’s exemptions.

Why Proper Planning Matters

Exemptions are powerful, but they’re also extremely technical. Mistakes in listing your property, valuing your assets, or claiming the wrong exemption can cost you dearly, sometimes resulting in property being sold by a trustee when you could have kept it.

Certain actions before filing, like paying off loans or transferring property to someone else, can backfire and cause the court to disallow or deny your claimed exemptions, or even deny your entire bankruptcy discharge. That’s why it’s so important to work with experienced bankruptcy counsel before you file.

At Larson & Zirzow, we take the time to go over every asset you own, every potential applicable exemption, and any recent events or transfers that could cause a problem. We guide you through smart pre-bankruptcy planning so you can maximize what you keep and avoid costly missteps.

What Are The Residency Rules for Using the Nevada Bankruptcy Exemptions?

Under federal law, you generally must have lived in Nevada for at least two full years before you can use Nevada’s exemptions. If you recently moved here, special rules apply that may let you use your prior state’s exemptions, or the federal exemptions in some circumstances. In these situations, it is important to work with an experienced bankruptcy attorney to determine which set of exemptions will apply, because the federal exemptions and other state’s exemptions are generally not as favorable as Nevada’s.

Residency issues can get complicated fast, but we know how to navigate them and make sure you don’t accidentally lose your protections under applicable law.

Chapter 7 vs. Chapter 13 — How Exemptions Affect Your Case

Exemptions play a big role in deciding whether Chapter 7 or Chapter 13 is best for you. In Chapter 7, any non-exempt property can theoretically be sold by the bankruptcy trustee to pay creditors. In Chapter 13, you generally keep all your property regardless of its exempt or non-exempt status, but you must pay your creditors at least the value of any non-exempt property over the life of your plan.

Good exemption planning can mean the difference between a quick discharge under Chapter 7 or a longer repayment under Chapter 13. We help you see the big picture so you know exactly what you’re protecting and why.

Why Larson & Zirzow for Personal Bankruptcy in Las Vegas?

Protecting your home, your car, your savings, and your family’s future is too important to leave to chance. Larson & Zirzow is a boutique Las Vegas bankruptcy firm with deep experience in Nevada’s unique exemption laws. Our experience and expertise, and our commitment to client service, give you an extra edge if your case involves complex assets or litigation.

We take the time to do things right, so you walk away with the maximum relief the law allows and the confidence that you didn’t leave anything on the table.

Ready to Protect What Matters Most?

Don’t let the fear of losing property keep you stuck drowning in debt you can’t pay. Nevada’s bankruptcy exemptions are here to help you keep your home, your car, and the necessities you need to live and rebuild.

Contact Larson & Zirzow today for a 30-minute consultation over the phone at no charge. We’ll explain exactly how bankruptcy exemptions work, what you can protect, and how we’ll stand by you every step of the way, so you can get a fresh start with your life and property intact.