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When you record a Declaration of Homestead, Nevada law protects the equity in your home up to $550,000 from general creditor claims. This provides protection from things like unpaid medical bills, bankruptcy, charge card debts, business/personal loans, and accidents, but would not preclude a seizure or forced sale of your residence from general creditors if your equity exceeds the $550,000. A creditor may file suit and can record a judgment lien against any real property you own.
Recording a Declaration of Homestead protects your principal residence up to the statutory maximum. For example, if the value of your home is $645,000 and you have a first mortgage of $485,000 plus a second mortgage of $10,000, the equity is $150,000.
The protection of the homestead is not absolute, however. It does not protect you from debts owed where you provided your home/land as collateral for a debt, such as debts secured by a mortgage or deed of trust. The Homestead law does not protect you against payment of taxes, IRS lien, mechanic's lien, child support or alimony payments.
The Nevada Homestead Exemption is a powerful and simple tool available to any homeowner. It is protection available to secure your home’s equity against creditors. We are pleased to be able to offer this service to you, at no charge, until 2-28-2017.
This article is provided for informational purposes only. It does not constitute legal advice or establish an attorney-client relationship. For more information or to schedule a consultation, please contact our office at 702-448-4962.