Legal Question in Bankruptcy in Nevada

Bankruptcy exemption question

I have spoken with a lawyer and am more confused than before. I am joint tenant on a house with a relative, not a spouse. It is valued about $240K, maybe more. The house has no mortgages or liens. It is homesteaded with a $200K exemption here in Nevada. I am over my head in credit card debt and can't pay. I don't make enough money to do Chapter 13. I can't lose the house, but the lawyer could not give me a clear understanding of what to do and whether I could claim the whole homestead exemption if I go chapter 7 or only half the exemption. If only half, he said I will be expected to come up with the money the exemption doesn't cover to pay the creditors. How can I come up with $20K or $30K on an $850/month income and bad credit. I don't want to lose the house. It's all we have in life. I have no suits or judgments yet, could I just drop off the title and make myself judgment proof? Or claim $200K homestead in a Chapter 7? It took me months to save $800 for the lawyer for a 7, and now don't know what I can or should do. I don't know whether he really knows either. I'm lost and very scared.


Asked on 4/22/04, 10:11 am

1 Answer from Attorneys
Dorothy Bunce

Measuring Homestead Exemption

You didn't say the "magic words" - 'I live in this house' but I am assuming that you do live there full time.

Your relative owns 1/2 of the house and you own the other half. So if the house is worth $250,000, your interest in the house equals half of that value, or $125,000. That amount would be covered under the Nevada homestead exemption.

I don't see a problem unless the co-owner was recently added to the title.

Call my office if you need a full-time Bankruptcy attorney to represent you.

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Answered on 4/22/04, 12:58 pm


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