Filing bankruptcy in Nevada does not automatically cost you your house. Nevada’s homestead exemption protects your home equity up to the dollar limit in NRS 115.010, and in Chapter 7 the trustee sells a home only when it is worth more than its liens plus your exemption. In either chapter you keep the house only if you keep paying the mortgage, because the lien survives your discharge.
Filing bankruptcy in Nevada does not have to cost you your house, because the homestead exemption in NRS 115.010 protects your equity up to its dollar limit, but you still have to keep paying your mortgage, and equity above that limit is not protected.
You want relief from your debts, but not at the price of your home. Do not let that fear keep you from getting answers. Over the last 90 days, our website showed up in Google for 54 different searches about exemptions, homesteads and keeping your house or car, so you share this question with plenty of other people. This guide shows Las Vegas homeowners like you how the homestead exemption works, what happens to your house in each chapter and which deadlines matter. Read it before you decide anything about your home.
Can you keep your house if you file bankruptcy in Nevada?
Nevada sets its own list of protected property. Under NRS 21.090, the federal bankruptcy exemptions in 11 U.S.C. 522(d) do not apply to Nevada residents unless Nevada law also grants them. If Nevada’s exemptions apply to you, Nevada homestead law protects your house, not a federal list. Your filing starts there.
The homestead protects equity, not the house itself. NRS Chapter 115 says the homestead is not subject to forced sale, with listed exceptions. Unless you have established allodial title, the protection extends only to equity up to the dollar limit in NRS 115.010. Equity means your home’s fair market value minus the liens the homestead does not cover. Work out that number and your exemption limits with your attorney before you file.
What counts as your homestead
Your homestead is broader than a single-family house. NRS 115.005 covers land with the dwelling house on it, a mobile home whether or not you own the land under it, and a unit in a common-interest community such as a condominium. Condominiums in Las Vegas and Henderson fall under that third category. Confirm which category fits your property.
What the homestead does not protect against
Some debts reach your home despite the homestead exemption. Unless you have established allodial title, NRS 115.010(3) says your homestead exemption does not extend to these claims:
- A mortgage or deed of trust, including a second mortgage, a refinance, a line of credit against the property and a home equity loan.
- Debts for buying the property or for improvements, including a lawfully obtained mechanic’s lien.
- Legal taxes.
- Liens you accepted with the property, specifically including a lien in favor of a homeowners association.
What happens to your house in Chapter 7 bankruptcy?
In Chapter 7 bankruptcy, the bankruptcy trustee gathers and sells property for your creditors. The U.S. Courts’ Chapter 7 basics explain that the trustee sells property that carries no liens if it is not exempt, or property worth more than any lien on it plus your exemption. When all of your assets are exempt or subject to valid liens, the trustee normally files a “no asset” report. The same page says most Chapter 7 cases involving individual debtors are no asset cases.
Your mortgage is the part people miss. The disclosure every reaffirmation agreement carries under 11 U.S.C. 524 says your bankruptcy discharge does not eliminate any lien on your property. That means the lien stays on your house, and missed payments put the house at risk. Keep your mortgage payments current through the whole case if you want to keep the home.
Reaffirmation and your statement of intention
Within 30 days after you file a Chapter 7 petition, or by your meeting of creditors if that comes first, 11 U.S.C. 521 requires you to file a statement of what you intend to do with property that secures a debt, and the court gives more time only for cause. A reaffirmation agreement keeps you personally liable on a debt that would otherwise be discharged, and the U.S. Trustee’s information sheet says reaffirmation agreements are voluntary. Any reaffirmation has to be made before your discharge. My advice: never sign a reaffirmation agreement on your house without reading it line by line with your attorney.
How does Chapter 13 bankruptcy help you keep your house in Las Vegas?
Chapter 13 bankruptcy is built for homeowners who want to stay. The U.S. Courts’ Chapter 13 basics say Chapter 13 allows you to keep property and pay debts over time, usually three to five years. Under 11 U.S.C. 1322(b)(5), your plan is allowed to cure a missed-payment default within a reasonable time while you keep up your regular payments on a long-term debt, such as a mortgage that runs past the end of your plan. You still make every mortgage payment that comes due during the plan on time.
Chapter 13 has firm limits for your home loan. Your right to cure a default on your principal residence lasts only until the home is sold at a foreclosure sale, under 11 U.S.C. 1322(c)(1). Your plan cannot force new terms on a lender whose claim is secured only by your principal residence, under 1322(b)(2), with one exception in 1322(c)(2) for a home loan whose last scheduled payment falls due before your plan ends. File before any sale date if you want this route.
How your equity affects your plan payment
Non-exempt assets, including equity above your exemption, still matter in Chapter 13. Under 11 U.S.C. 1325(a)(4), each unsecured creditor has to receive at least what it would get if your estate were liquidated under Chapter 7. Unprotected equity in your home therefore raises the minimum your plan pays. Ask for that calculation before you choose a chapter.
| Your house in bankruptcy | Chapter 7 | Chapter 13 |
|---|---|---|
| Equity above your exemption | Trustee sells only if the home is worth more than its liens plus your exemption | Chapter 13 allows you to keep property, and that equity raises your minimum plan payment |
| Missed mortgage payments | No plan to catch up | Your plan is allowed to cure them, until a foreclosure sale |
| Your mortgage lien | Survives the discharge | Long-term mortgage is not discharged |
| Changing your first mortgage terms | Not part of the case | Not without your lender’s consent when secured only by your principal residence (one exception in 1322(c)(2)) |
The Nevada mortgage modification program
The Nevada bankruptcy court runs a mortgage modification program for Las Vegas and Reno Chapter 13 cases, covering all types of real property. The court says it will not force any modification and acts only with the consent of both parties. That makes it a negotiation tool, not a promise of new terms. Ask whether your case is a fit before you file.
Do you need to record a declaration of homestead in Clark County?
Nevada law selects your homestead through a written declaration. Under NRS 115.020, either spouse, both spouses or a single person makes the selection by declaring in writing an intention to claim the property as a homestead. The declaration has to be signed, acknowledged and recorded the way other real property documents are recorded. The Clark County Recorder’s forms page carries a Declaration of Homestead form.
Whether a recorded declaration changes your bankruptcy case is a question for your attorney. Bring proof of any declaration you recorded, or tell your attorney you never filed one. Your bankruptcy attorney then checks how that affects your exemption. My view: look up your recording status this week, before you need it.
How long do you need to live in Nevada to use its exemptions?
Federal law decides which state’s exemptions you use. Under 11 U.S.C. 522(b)(3)(A), you use the exemptions of the state where your domicile was for the 730 days before you filed. If your domicile was in more than one state during that time, the law looks to where your domicile was for the 180 days before that 730-day period, or the longer part of it. List your addresses for the last few years before your first meeting.
A second rule targets recently gained equity. Under 522(p), a debtor using state exemptions cannot exempt homestead equity acquired during the 1,215 days before filing above a federal dollar cap. Equity you rolled over from an earlier Nevada home, bought before that window, does not count toward it. Tell your attorney when you bought your current home and where the money came from.
How Vohwinkel Law helps you protect your home in Las Vegas
Keeping your house comes down to equity, payments and timing. Vohwinkel Law handles Chapter 7 and Chapter 13 bankruptcy, foreclosure defense and mediation, loan modification requests and short sales for Las Vegas and Henderson homeowners. You get one office that weighs your options against your goals. Our pages on exempt property in Nevada and the Nevada wildcard exemption give you more background.
If you are behind on payments, act before a sale date. Our guide on how Chapter 13 stops a foreclosure walks through that path, and our article on selling a house during Chapter 13 covers what happens if you decide to move later. Bring your mortgage statement, your property tax bill and any HOA notices to your first meeting. Those papers show your attorney where your equity stands.
Homestead and bankruptcy questions Las Vegas homeowners ask
Will the trustee sell my house in Chapter 7?
Only when the numbers support a sale. The U.S. Courts say the trustee sells property that carries no liens and is not exempt, or property worth more than its liens plus your exemption. Under 11 U.S.C. 554, after notice and a hearing, the trustee also has the power to abandon property of inconsequential value to the estate. Get your equity estimate before you file.
Does the homestead exemption protect me from my mortgage lender?
No. NRS 115.010(3) says the exemption does not extend to a mortgage or deed of trust on the property, including a second mortgage, a refinance, a line of credit and a home equity loan. Your lender keeps its lien through the bankruptcy. Keep paying it if you want to stay in the home.
What if my spouse and I file together?
In a joint case, 11 U.S.C. 522(m) applies the exemption rules separately to each spouse. Under 522(b)(1), one spouse cannot choose the federal list while the other chooses the state list, so you use the same system. How that applies to your home equity is a question for your attorney. Bring both names on your deed to the meeting.
Does the wildcard exemption protect my home equity?
Nevada’s wildcard exemption in NRS 21.090(1)(z) covers personal property not otherwise exempt, including your equity in any property, up to its own dollar limit. Your house itself falls under the homestead rules. Ask your attorney whether the wildcard adds anything for your home equity and how it fits your other assets. Our wildcard exemption guide explains the basics.
Does filing bankruptcy stop a foreclosure on my house?
Filing triggers the automatic stay, and 11 U.S.C. 362(a) stays any act to enforce a lien against property of the estate. Repeat filers get less protection: with one case dismissed in the past year, the stay ends as to you on the 30th day, and the court extends it only if you show good faith at a hearing finished within those 30 days, and with two or more dismissed cases it does not take effect at all. Chapter 13 adds a plan to cure missed payments, but only until a foreclosure sale. Read our guide on stopping a foreclosure in Nevada for your other options.
Does the homestead exemption stop my HOA lien?
No. NRS 115.010(3)(b) says the exemption does not extend to a lien you accepted with the property, specifically including a lien in favor of a homeowners association. Check your HOA balance now. Bring your latest HOA statement to your first meeting.
You deserve a clear plan for your house. Vohwinkel Law offers a free consultation, with payment plans available. To talk through keeping your house in a Las Vegas or Henderson bankruptcy, call (702) 735-1500.
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