Nevada Bankruptcy Exemptions Formality
The redemption and reaffirmation options apply in addition to Nevada bankruptcy exemptions. These rights are cumulative, so that property that is exempt under the Nevada bankruptcy exemptions may be retained, even though payments are past due, in two distinctly different ways. Redemption requires full payment of secured debt, and effects a full release of the lien. The right to redeem cannot be waived, and is allowed only for personal, household and family oriented collateral. Reaffirmation requires a creditor's agreement, and are common. Reaffirmation agreements are more common than redemption, because only past due payments must be brought current, so long as the debtor agrees to remain liable for payment. The court must approval all reaffirmation agreements.
What property is exempt?
Nevada is considered one of the most generous states because of the Nevada homestead exemption. The equity amount that may be retained is currently $125,000, as compared to 12 states that allow less than $10,000. Six states allow unlimited value for acreage, however, a recent federal amendment placed a cap on all state homestead exemptions allowances in the amount of $225,000. In general, personal, family and household items are exempt up to a modest value, and certain pensions and retirement accounts. Because these values are subject to change in response to the consumer price index, all people needing legal advice are encouraged to consult with a Nevada bankruptcy lawyer.
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