Legal Question in Credit and Debt Law in Nevada

Re: judgement against property

The Nevada Homestead law, provides:

NRS 115.010 Exemption from sale on execution and from process of court; amount of exemption; exceptions; extension of exemption.

1. The homestead is not subject to forced sale on execution or any final process from any court, except as otherwise provided by subsections 2, 3 and 5, and NRS 115.090 and except as otherwise required by federal law.

2. The exemption provided in subsection 1 extends only to that amount of equity in the property held by the claimant which does not exceed $550,000 in value, unless allodial title has been established and not relinquished, in which case the exemption provided in subsection 1 extends to all equity in the dwelling, its appurtenances and the land on which it is located.

3. Except as otherwise provided in subsection 4, the exemption provided in subsection 1 does not extend to process to enforce the payment of obligations contracted for the purchase of the property, or for improvements made thereon, including any mechanic�s lien lawfully obtained, or for legal taxes, or for:

(a) Any mortgage or deed of trust thereon executed and given, including, without limitation, any second or subsequent mortgage, mortgage obtained through refinancing, line of credit taken against the property and a home equity loan; or

(b) Any lien to which prior consent has been given through the acceptance of property subject to any recorded declaration of restrictions, deed restriction, restrictive covenant or equitable servitude, specifically including any lien in favor of an association pursuant to NRS 116.3116 or 117.070, by both husband and wife, when that relation exists.

Your attorney can advise further.

Re: judgement against property

We can get the judgment off the property by filing a bankruptcy (guaranteed). We only need to file for you mother in law as the husband did not sign for it. They cannot be forced to pay it until both your in-laws pass away and it would be paid from the equity from the house before it is distributed to the heirs.

The only way to stop the judgment from growing is through bankruptcy. The judgment is earning interest at 10.25% per year and the only option, other than bankruptcy, is to wait at least six years to see if they renew the judgment. Sorry the news is not better.