Can They Take My Elvis Costume?

A Guide To Nevada’s Quirkiest Asset Exemptions

There is no denying that Las Vegas draws in a very unique brand of people. We also have a high population of people working in the entertainment and hospitality industries. This leads to many Nevada residents having high-value assets that others may view as strange. For example- for the average person, spending several hundred or even thousands of dollars on an Elvis costume for Halloween would be ridiculous. But for someone who works at a Las Vegas wedding chapel, this could be a worthwhile investment that will get significant use. Read on to see examples of some of the quirkiest assets we’ve seen come through our Las Vegas bankruptcy office. For more information about filing for bankruptcy while protecting your assets, schedule your free consultation with our firm today at 702-370-0155 for more information. 

Asset Exemptions for Bankruptcy Property

What is a Bankruptcy Exemption?

Bankruptcy debtors are required to list everything they own in their bankruptcy schedules to be reviewed by the bankruptcy trustee. Anything that doesn’t fall under an applicable bankruptcy exemption is up for grabs. The trustee can take that asset and sell it by auction. Most of the sale proceeds will be divided among the creditors, but the trustee also gets to keep a portion. There can be additional consequences if the trustee discovers an unprotected asset, especially if the omission was intentional. If the asset is only partially protected by the exemption, the trustee can still sell the asset at auction, but the debtor will receive proceeds equal to the exemption amount. Some states allow debtors to choose if they want to use federal bankruptcy exemptions instead, but Nevada is not one of them. 

Elvis Costume

There are a few different exemptions that could be used to protect an Elvis costume in a Las Vegas bankruptcy filing. The wearing apparel and household goods currently protects $12,000 worth of items in this category for individual debtors, and $24,000 worth of items in this category for joint debtors. A particularly bedazzled Elvis costume might push the limits of the bankruptcy exemption. Additionally, this type of costume, which does have a potential return on investment, may have a higher resale value than standard clothing. If a Las Vegas bankruptcy debtor wants to protect their Elvis costume along with the rest of their wardrobe, they may want to consider a different exemption.

The next potential exemption only applies to debtors who own an Elvis costume for professional endeavors. Nevada’s tools of the trade exemption is worth $10,000. Performers and artists can use this exemption to apply their costumes and props, and blue collar workers can use it to protect their tools necessary to earn a living. If the tools of the trade exemption doesn’t apply or is being used for other assets, Nevada also offers a wildcard exemption. The wildcard exemption is worth $10,000 for individual debtors and $20,000 for joint debtors. It can be used to protect any asset (besides real estate) of the debtor’s choosing. It can also be stacked on top of an exemption that is already being used but isn’t high enough to cover the asset’s full value. This exemption can only be applied to a singular asset, so use it with caution- you may have other assets with absolutely no other applicable exemption to protect them. 

Casino Winnings

Las Vegas is home to some of the world’s most iconic hotels and casinos. It’s hard to walk down the strip without throwing a dead president down on your favorite table. But once that cash lands in your bank account, it becomes a risk factor in the bankruptcy process. In Nevada, only up to 75% of a debtor’s disposable monthly income is covered by the cash on hand bankruptcy exemption. Casino winnings could be at risk of seizure by the trustee in either chapter of bankruptcy. If you have excess funds in your account, this may be a good use of your wildcard exemption. These are one of the simplest assets for a bankruptcy trustee to seize and they have every incentive and obligation to do so. 

Collections and Keepsakes

Las Vegas is infamously known as a land of debauchery, which leads to unique collectibles being available for purchase here. It’s also possible to come upon these items without spending a great deal of money, simply through chance and opportunity. Even if they were acquired for free, they are still considered assets if that person ever declares bankruptcy. The good thing here is that it can be difficult to assign a value to collectibles and keepsakes. They are ultimately worth what people are willing to pay for them, and it can take months or even years to sell a highly unique item for its full value. Bankruptcy trustees need to keep this in mind when deciding whether or not an asset is outside the bounds of its applicable exemption and should be seized and sold at auction. Some of the most unique collections we have seen owned by our Las Vegas clientele include:

  • Vintage slot machines
  • Specialty playing cards
  • Geological specimens and mineral collections
  • Taxidermy  creations
  • Autographs from celebrities and other public figures
  • Posters and other marketing materials from movies, live shows on the Strip, etc. 
  • Old casino chips and dice
  • Vintage costumes and headpieces from Las Vegas showgirls
  • Custom special effects props and masks used for horror movies
  • Radiation counters and other memorabilia from the Atomic Testing Era
  • Decommissioned neon signs
  • Limited edition liquor and cigar boxes
  • Jewelry, especially pieces made from turquoise and silver
  • Arrowheads, tomahawks, and other Native American artifacts

The exact item being collected can affect which bankruptcy exemptions may apply and if the debtor uses them for their profession. There is no limit to the bankruptcy exemption for family keepsakes and pictures in Nevada. A Las Vegas bankruptcy debtor may want to argue that their collection falls under that exemption. But if the argument that the collection is full of family mementos is thin, there are more specific exemptions, such as the limitless geological specimens bankruptcy exemption. If there aren’t any specific exemptions to apply to their collection, the debtor should consider applying their wildcard exemption here. 

Protect Your Most Valuable Possessions by Retaining Our Las Vegas Bankruptcy Team

Filing an erroneous bankruptcy petition can put your assets at risk, but so can letting your debt situation go unchecked. Liens, repossessions, and foreclosures could all be on your horizon, among other forms of debt collection, without a form of debt relief like bankruptcy. But when a petition for chapter 7 or chapter 13 bankruptcy is filed, the debtor is protected from collection efforts by the automatic stay. A skilled attorney will make sure your case remains in good standing so that protection lasts until your case and debts are discharged. We also make it easier to afford high-quality legal counsel by offering payment plans that don’t start until after your case has been filed. Want to learn more and discuss the specifics of your potential case with an experienced Las Vegas bankruptcy lawyer? Schedule your free consultation by phone today by calling 702-370-0155.

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Las Vegas Bankruptcy Lawyers

LAS VEGAS
7251 W Lake Mead BLVD #300
Las Vegas, NV89128
Office: 702-879-2499
Email: [email protected]

HENDERSON
1489 W Warm Springs Rd. Ste 110
Henderson, NV 89014
Email: [email protected]

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