Nevada Homestead Exemption
The Nevada housing market has been especially hard hit by the Great Recession. As a result, home equity has become somewhat of a foreign concept for many Nevadans, making the state’s generous $550,000 homestead exemption a bit ironic. Nevertheless, it is possible to file bankruptcy in Nevada and keep your home if you have $550,000 or less in home equity. Home equity can be calculated by subtracting the amount of any mortgage liens from the appraised value of the home. Debtors must record the homestead declaration, before filing for bankruptcy, in order for it to be effective.
For instructions on how to record a declaration of homestead in Nevada, click here.
Keep in mind, that the Nevada homestead exemption applies only to your primary residence, it does not protect investment property. Furthermore, exempting home equity under Nevada bankruptcy laws does not forgive the obligation to pay the mortgage. Failure to keep up with regular mortgage payments after bankruptcy can still result in a foreclosure, regardless of exemptions. Looking for more information? See the Related Posts section below.