How to Protect Your Storage Units In a Nevada Bankruptcy
Can Your Storage Unit Create Complications During The Bankruptcy Process?
Storage units can be a great way to store items during transition periods or that you don’t have space for in your home. But if it comes time for you to file bankruptcy, this can create complications in your case that will need to be addressed. Read on to learn more about how to make sure that your storage unit will be exempt from the bankruptcy process.
Approximately 1 in 11 households in the United States owns a storage unit at any given time. This is an increase of about 75% from 1995. And it’s no wonder why storage unit usage is becoming increasingly popular. Storage units can be useful to people in all types of situations. But it can be easy to let your storage unit and its contents slip your mind. It’s crucial that you don’t let this happen if you declare bankruptcy in Nevada. Clearly, if you have chosen to rent a storage unit, its contents have value to you. Our Nevada bankruptcy team will work to protect your storage unit, as well as the rest of your possessions. That means you can move on from your bankruptcy with your stuff, but without your debt. For your free consultation with our Las Vegas bankruptcy firm, call (702) 370-0155.
What Happens To My Nevada Storage Unit In a Chapter 7 Bankruptcy?
There are a few concerns that you will need to keep in mind if you own a storage unit and wish to file Chapter 7 bankruptcy in Nevada. While you may financially qualify for a Chapter 7 in Nevada, you will also need to make sure that all of your assets will be protected by state exemptions. Nevada does not offer the option to use federal bankruptcy exemptions that many states have. In a Chapter 7 bankruptcy, exemptions must be applied to all of your belongings, or else the trustee can take them to sell at auction and pay your debts.
There is no Nevada bankruptcy exemption that is specifically meant to be used on storage units. So you should first inventory your possessions in your primary residence to see how much exemption protection you will have available for your storage unit. Keepsakes and pictures that hold far more sentimental value than financial value are completely protected in a Nevada bankruptcy filing. Health aids are also exempt with no limit in Nevada. There also isn’t a value limit for geological collections. But chances are that these types of items don’t make up the majority of your belongings.
Common Nevada Bankruptcy Exemptions
One of the most commonly used bankruptcy exemptions in Nevada is the household goods and furnishings exemption, which is $12,000. This exemption can be used for furniture, appliances, yard equipment, and other home wares. So if you have less than $12,000 worth of household goods in your residence, you may be able to apply some of this exemption towards the contents of your storage unit.
Nevada also offers a bankruptcy exemption of $5,000 for private libraries, musical instruments, art, and jewelry. This exemption might be applicable to several of the items in your storage unit. One gun is protected under Nevada bankruptcy exemptions. Up to $4,500 of farm trucks and equipment is protected in a Vegas or Henderson chapter 7 bankruptcy. If you have mining equipment, up to $4,500 of that is protected as well. Some people keep motor vehicles in storage units. In Nevada, the motor vehicle exemption, which can be applied to one vehicle, is $15,000. Nevada also offers a wildcard exemption of $10,000. This can be used on anything you wish, so if you haven’t used it yet, you can apply it to your storage unit.
Filing Chapter 13 When Your Nevada Storage Unit Contents Aren’t Exempt
If you have a particularly valuable storage unit, or have income that exceeds Chapter 7 limits, you can consider filing Chapter 13 instead. Filing Chapter 13 bankruptcy could also be useful if you are behind on your storage unit rent, whether the company has applied a lien yet on your unit.
Not everyone can file Chapter 7, and when it isn’t available, Filing Chapter 13 in Las Vegas is usually the alternative. That is because instead of clearing debts away, it reorganizes them into a payment plan that lasts three or five years. Debts will be paid in order based on four categories. If the debtor doesn’t have enough disposable monthly income, unsecured debts, the final category, may only need to be partially repaid. Because your debts are actually being paid, the trustee will be less concerned about you having a valuable house or car.
I’m Behind On My Storage Unit Rent: Can Bankruptcy Help?
Falling behind on your storage unit rent can have serious consequences. The storage unit company may eventually change the locks on your unit, or even put a lien on your property. But if it hasn’t progressed to this point yet, a bankruptcy filing can help you save your storage unit and its contents. Filing Chapter 7 or Chapter 13 bankruptcy immediately triggers the automatic stay. This is a legal protection that stops your creditors from taking actions like seeking a judgment against you, repossessing your assets, garnishing your wages, and more.
The protections from the automatic stay won’t last forever. If your case proceeds smoothly, the automatic stay will last until your case is discharged. You will only have that amount of time to catch up on your past-due balance if you wish to retain your storage unit. As mentioned above, that is either three or five years when you declare Chapter 13 bankruptcy. But if you file Chapter 7 bankruptcy, this will only be about three to five months. If you don’t resolve the balance within these three to five months, your storage unit landlord will be able to proceed with auctioning off your unit after your case is discharged. If you file Chapter 13, your monthly plan payments will go towards paying off your storage unit rent arrearages. That means you will be current when your case is discharged, so the landlord
What Happens If I Don’t Include My Storage Unit In My Bankruptcy Petition?
If you value your storage unit and its contents, forgetting to list it in your bankruptcy petition is a mistake you definitely don’t want to make. Even if it’s an unintentional oversight, the trustee could delay or even dismiss your case after learning of an unlisted storage unit. The trustee might want to investigate your storage unit, and could possibly seize some or all of its contents to sell at auction. If there is debt associated with your storage unit, it may not be discharged along with the rest of your debts in your bankruptcy. In extreme cases, you could even be charged with bankruptcy fraud. Bankruptcy Fraud is a felony and punishable by fines and prison time.
Contact Las Vegas Bankruptcy Attorneys To Get The Job Done
When you file bankruptcy, you want everything to go smoothly. Therefore, protecting all of your assets and proceeding without delays. Thus, you probably also want to achieve this at an affordable price. Hence, our Vegas bankruptcy team utilizes our experience to offer high quality services with fair rates and post-filing payment options available. We will help you protect what’s important to you, and also move forward building a more positive credit history. To get started today with your free consultation, call or use our online form.
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