NEVADA LEGAL SERVICES

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Donate to NLS

The advocates at NLS provide services at no cost to our clients. Your help in advocating for the rights of low income children, families, seniors, and unemployed workers will profoundly and positively affect their lives and benefit the communities we serve.

NLS is a non-profit organization and your gift is tax deductible. To make a donation, please contact Roberta O'Hara at (702) 386-0404.

Debt Collection

Even if you have a judgment against you, your creditor must still try to garnish your wages or attach your property in order to collect the amount of the judgment. Not all property is available for the creditor to take. Some of your wages, money in a bank account, or other property is exempt from execution.

Debt Collection Brochure

What is exempt property?

Chapter 21 of the Nevada Revised Statutes lists property that is exempt from execution in Nevada. NRS 21.090. Exempt income includes:

• Social Security, SSI, SSD
• Public assistance such as TANF or food stamps
• Unemployment benefits
• Disposable earnings under $362.50 per week
• $1,000 in a bank account
• Veteran’s Benefits, Railroad Retirement benefits, PERS (Public Employee’s Retirement System), or FERS (Federal Employee Retirement System), or CSRS (Civil Servant Retirement System)
• Worker’s Compensation
• Child support or alimony income
• Payments received from a wrongful death judg-ment or settlement

Exempt property includes:

• Up to $550,000 in equity in a homestead (Homesteading Your Home)
• Jewelry, musical instruments, or other keepsakes not to exceed $5,000
• Necessary household goods not to exceed $12,000
• Farm equipment, trucks, stock, tools and sup-plies not to exceed $4,500
• Tools, instruments, and materials of trade not to exceed $10,000
• One vehicle with less than $15,000 in equity
  

How do I claim an exemption?

You must file an affidavit of exemption with the court, within 8 days of notice of that execution or garnishment. A copy of the affidavit must be served upon the Sheriff (or Constable) and the judgment creditor. When the affidavit is served, the Sheriff (or Constable) must release the property to you within 5 days unless you or the judgment creditor files a motion for a hearing to determine whether the property is actually exempt. Unless the court continues the hearing for good cause shown, the hearing will be held within 10 days after the motion is filed.

Affidavit Claiming Exempt Property

I was just served with a Complaint. What do I do now?

If you do not believe you owe the debt or disagree with the amount, you need to file an Answer within 20 days of receiving the Summons and Complaint. The Answer must state why you do not owe the debt and any affirmative defenses you believe you have to the debt. If you believe the creditor or debt collection agency did something illegal in attempting to collect the debt, you may also want to file a counterclaim against the creditor or debt collector when you file your answer.

If you do not file an answer or go to the hearing, the creditor can get a default judgment against you. A judgment remains in effect in Nevada for six years, and can be renewed forever.

If you do owe the debt, you can choose not to answer the complaint. A default judgment will be entered against you, but you will likely incur less attorney's fees than if you contested the Complaint. See above for information on how a creditor can collect a judgment.

Collection agencies keep calling but all of my property is exempt. How do I stop them from contacting me?

Under the Fair Debt Collection Practices Act (FDCPA), you can request the collection agency stop contacting you. All requests should be dated and in writing. Be sure to keep a copy for yourself. Afterwards, you can only be contacted regarding changes on your account (for example, if the debt has been sold or the debt collector is going to pursue a judgment).

What can collection agencies do to try to collect a debt?

The Fair Debt Collection Practices Act (FDCPA) sets out the rules collection agencies must follow. The FDCPA applies only to third party collection. It does not apply to creditors trying to collect money you owe them directly. If a debt collector is harassing you, you do have the following protections:

• You should not be contacted about your debt at any unusual time or place. Generally, any con-tact from the debt collector before 8:00 am or after 9:00 pm violates the FDCPA.
• If your employer prohibits contact from a collec-tion agency at work, once you advise the collector they must stop all communication with you at work.
• The attempts at collection cannot be threatening. The collector cannot threaten you with jail or physical harm. They also cannot threaten to tell others about your debt to embarrass you.
• If you want to dispute the debt, you can notify the collector of your dispute and request written verification of the debt. This must be done within 30 days from when you received notice of the debt. The collection agency must then verify the debt and provide you with copies of the verification.