AB 481 — Revises provisions relating to civil actions and homesteads. (BDR 2-1106)

26.

You should consult an attorney immediately to assist you in determining whether your property or money is exempt from execution.

IfgIf you cannot afford an attorney, you may be eligible for countyassistance providingthrough legal.................... services to indigent or elderlyization in persons).

(name of organization in county providing legal services to indigent or elderly persons).

PROCEDURE FOR CLAIMING EXEMPT PROPERTY If you believe that the money or property taken from you is exempt, you must complete and file with the clerk of the court an executed claim of exemption.

The property must be released by the garnishee or the sheriff within 9 judicial days after you serve the claim of exemption upon the sheriff, garnishee and - *AB481* – 6 – judgment creditor, unless the sheriff or garnishee receives a copy of an objection to the claim of exemption and a notice for a hearing to determine the issue of exemption.

The objection to the claim of - 80th Session (2019) – 6 – exemption and notice for the hearing to determine the issue of exemption must be filed within 8 judicial days after the claim of exemption is served on the judgment creditor by mail or in person and served on the judgment debtor, the sheriff and any garnishee not less than 5 judicial days before the date set for the hearing.

You may be able to have your property released more quickly if you mail to the judgment creditor or the attorney of the judgment creditor written proof that the property isisrney of exempt.

IF YOU DO NOT FILE THE EXECUTED CLAIM OF EXEMPTION WITHIN THE TIME SPECIFIED, YOUR PROPERTY MAY BE SOLD AND THE MONEY GIVENRGIVEN TO THE JUDGMENT CREDITOR, EVEN IF THE PROPERTY OR MONEY IS EXEMPT.

(a) Private libraries, works of art, musical instruments and jewelry not to exceed $5,000 in value, belonging to the judgment judgment debtor, and all family pictures and keepsakes.ected by the (b) Necessary household goods, furnishings, electronics, wearing apparel, other personal effects and yard equipment, not to exceed $12,000 in value, belonging to the judgment debtor or a dependent of the judgment debtor, to be selected by the judgment debtor,debtor. and all family pictures and keepsakes.

(b) Necessary household goods, furnishings, electronics, wearing apparel, other personal effects and yard equipment, not to exceed $12,000 in value, belonging to the judgment debtor or a dependent of the judgment debtor, to be selected by the judgment debtor.

- *AB481* – 7 – (d) Professional libraries, equipment, supplies, and the tools, inventory, instruments and materials used to carry on the trade or business of the judgment debtor for the support of the judgment debtor and his or her family not to exceed $10,000 in value.

- 80th Session (2019) – 7 – (e) The cabin or dwelling of a miner or prospector, the miner’s or prospector’s cars, implements and appliances necessary for carrying on any mining operations and the mining claim actually worked by the miner or prospector, not exceeding $4,500 in total value.

(g) For any workweek, 82 percent of the disposable earnings of a judgment debtor during that week if the gross weekly salary or wage of the judgment debtor on the date the most recent writ ofofr garnishment was issued was $770 or less, 75 percent of the disposable earnings of a judgment debtor during that week if the gross weekly salary or wage of the judgment debtor on the date the most recent writ of garnishment was issued exceeded $770, or 50 times the minimum hourly wage prescribed by section 206(a)(1) of the federal Fair Labor Standards Act of 1938, 29 U.S.C.

Except as otherwise provided in paragraphs (o), (s) and (t), the exemption provided in this paragraph does not apply in the case of any order of a court of competent jurisdiction for the support of any person, any order of a court of bankruptcy or of any debt due for any st(1)state “Disposableor earnings”federal meanstax. that part of the earnings of a judgment debtor remaining after the deduction from those earnings of any amounts required by law to be withheld.

(2)As “Earnings”used means compensation paid or payable for personal services performed by a judgment debtor in thethis regularparagraph: course of business, including, without limitation, compensation designated as income, wages, tips, a salary, a commission or a bonus.

The(1) term“Disposable includesearnings” compensationmeans received by a judgment debtor that ispart inof the possessionearnings of thea judgment debtor,debtor compensationremaining heldafter inthe accountsdeduction maintainedfrom inthose aearnings bankof or any otheramounts financialrequired institutionby or,law into thebe casewithheld. of a receivable, compensation that is due the judgment debtor.

(2) “Earnings” means compensation paid or payable for personal services performed by a judgment debtor in the regular course of business, including, without limitation, compensation bonus.

The term includes compensation received by a judgment a debtor that is in the possession of the judgment debtor, compensation held in accounts maintained in a bank or any other financial institution or, in the case of a receivable, compensation that is due the judgment debtor.

- *AB481* – 8 – (j) All courthouses, jails, public offices and buildings, lots, grounds and personal property, the fixtures, furniture, books, papers - 80th Session (2019) – 8 – and appurtenances belonging and pertaining to the courthouse, jail and public offices belonging to any county of this State, all cemeteries, public squares, parks and places, public buildings, town halls, markets, buildings for the use of fire departments and military organizations, and the lots and grounds thereto belonging and appertaining, owned or held by any town or incorporated city, or dedicated by the town or city to health, ornament or public use, or for the use of any fire or military company organized under the laws of this State and all lots, buildings and other school property owned by a(k) schoolAll districtmoney, andbenefits, devotedprivileges toor publicimmunities schoolaccruing purposes.or in any manner growing out of any life insurance.

(k) All money, benefits, privileges or immunities accruing or in any manner growing out of any life insurance.

(n) All money reasonably deposited with a landlord by the judgment debtor to secure an agreement to rent or lease a dwelling that is used by the judgment debtor as his or her primary residence, except that such money is not exempt with respect to a landlord or the landlord’s successor in interest who seeks to enforce the terms of the agreement to rent or lease the dwelling.

(o) All property in this State of the judgment debtor where the judgment is in favor of any state for failure to pay that state’s incomeplan.e tax on benefits received from a pension or other retirement plan.(p) Any vehicle owned by the judgment debtor for use by the judgment debtor or the judgment debtor’s dependent that is equipped or modified to provide mobility for a person with a permanent disability.

(p) Any vehicle owned by the judgment debtor for use by the judgment debtor or the judgment debtor’s dependent that is equipped or modified to provide mobility for a person with a permanent disability.

(1) An individual retirement arrangement which conforms with or is maintained pursuant to the applicable limitations and requirements of section 408 or 408A of the Internal Revenue Code, 26 U.S.C.

- *AB481*80th Session (2019) – 9 – (2) A written simplified employee pension plan which conforms with or is maintained pursuant to the applicable limitations and requirements of section 408 of the Internal Revenue Code, 26 U.S.C.

(4) A trust forming part of a stock bonus, pension or profit- sharing plan which is qualified and maintained pursuant to sections 401 et seq.

(t) All money and other benefits paid pursuant to the order of a court of competent jurisdiction for the support and maintenance of a former spouse, including the amount of any arrearages in the payment of such support and maintenance to which the former spouse may be entitled.

and maintenance to which the former (u) Payments, in an amount not to exceed $16,150, received as compensation for personal injury, not including compensation for pain and suffering or actual pecuniary loss, by the judgment debtor or by a person upon whom the judgment debtor is dependent at the time the payment is received.

- 80th Session (2019) – 10 – (x) Payments received as restitution for a criminal act.

- *AB481* – 10 – (y) Payments received pursuant to the federal Social Security Act, including, without limitation, retirement and survivors’ benefits, supplemental security income benefits and disability insurance benefits.

(z) Any personal property not otherwise exempt from execution pursuant to this subsection belonging to the judgment debtor, including, without limitation, the judgment debtor’s equity in any property, money, stocks, bonds or other funds on deposit with a financialselected institution,by notthe tojudgment exceeddebtor.ceed $10,000 in total value, to be selected(aa) Any tax refund received by the judgment debtor.debtor that is derived from the earned income credit described in section 32 of the Internal Revenue Code, 26 U.S.C.

(aa) Any tax refund received by the judgment debtor that is derived from the earned income credit described in section 32 of the Internal Revenue Code, 26 U.S.C.

(2) A distribution interest in the trust as defined in NRS 163.4155 that is a discretionary interest as described in NRS 163.41(3)163.4185, Aif power of appointment in the trustinterest as defined in NRS 163.4157 regardless of whether the power has not been exercised;distributed;

protector(3) asA definedpower of appointment in NRSthe 163.5547trust oras anydefined otherin personNRS 163.4157 regardless of whether the power has been exercised;

and(4) (5)A power listed in NRS 163.5553 that is held by a trust protector as defined in NRS 163.5547 or any other person regardless of whet(5) A reserved power in the trust as defined in NRS 163.4165 regardless of whether the power has been exercised.

- 80th Session (2019) – 11 – (gg) Compensation that was payable or paid pursuant to chapters 616A to 616D, inclusive, or chapter 617 of NRS as provided in NRS 616C.205.

- *AB481* – 11 – (hh) Unemployment compensation benefits received pursuant to NRS 612.710.

(kk) Public assistance provided through the Department of Health and Human Services pursuant to NRS 422.291 andandment of 422A.325.

(a) The judgment creditor serves the defendant with notice of the execution when the notice of the hearing is served pursuant to NRS(b)NRS Pursuant31.013; to an ex parte hearing, the sheriff serves upon the judgment debtor notice of the execution and a copy of the writ at the  If the attachment occurs pursuant to an ex parte hearing, the clerk of the court shall attach the notice to the writ of attachment at the time the writ is issued.

or (b) Pursuant to an ex parte hearing, the sheriff serves upon the judgment debtor notice of the execution and a copy of the writ at the  If the attachment occurs pursuant to an ex parte hearing, the clerk of the court shall attach the notice to the writ of attachment at the time the writ is issued.

The plaintiff has begun the - 80th Session (2019) – 12 – procedure to collect that money.

- *AB481* – 12 – Certain benefits and property owned by you may be exempt from execution and may not be taken from you.

Payments received pursuant to the federal Social Security Act, including, without limitation, retirement and survivors’ benefits, supplemental security income benefitsbenefitsd and disability insurance benefits.

(a) The judgment is for a medical bill, in which case all of home,the mayprimary bedwelling, exempt., including a mobile or manufactured (b)home(b) Allodial title has been established and not relinquished for the dwelling or mobile home, in which case all of the dwelling or mobile home and its appurtenances are exempt, including the land on which they are located, unless a valid waiver executed pursuant to NRS 115.010 is applicable to the judgment.

- 80th Session (2019) – 13 – 11.

Eighty-two percent of the take-home pay for any workweek if your gross weekly salary or wage on the date the most recent writ of garnishment was issued was $770 or less, or seventy-five percent of the take-home pay for any workweek if your gross weekly salary or wage on the date the most recent writ of garnishment was issued exceeded $770, - *AB481* – 13 – unless the weekly take-home pay is less than 50 times the federalamount minimummay hourlybe exempt.y wage, in which case the entire amount13. may be exempt.

13.

(a) An individual retirement arrangement which conforms with the applicable limitations and requirements of section 408 or 408A of the Internal Revenue Code, 26 U.S.C.

(d) A trust forming part of a stock bonus, pension or profit-sharing plan that is a qualified plan pursuant to sections 401 et seq.

and (e) A trust forming part of a qualified tuition program pursuant to chapter 353B of NRS, any applicable regulations adopted pursuant to chapter 353B of NRS and section 529 of money is deposited after the Internalentry Revenueof Code,a 26judgment U.S.C.against the purchaser or account owner or the money will not be used by any beneficiary to attend a college or university.

§ 529, unless the money is deposited after the entry of a judgment against the any beneficiary to attend a college or university.e used by 14.

All money and other benefits paid pursuant to the order of a court of competent jurisdiction for the support, education and maintenance of a child, whether collected by,by the judgment debtor or the State.

- 80th Session (2019) – 14 – 16.

- *AB481* – 14 – (c) The power to direct dispositions of property in the trust, other than such a power held by a trustee to distribute property to a beneficiary of the trust;

A prosthesis or any equipment prescribed by a physicianphy20.ianPayments, orin dentistan amount not to exceed $16,150, received as compensation for youpersonal injury, not including compensation for pain and suffering or youractual dependent.pecuniary loss, by the judgment debtor or by a person upon whom the judgment debtor is dependent at the time the payment is received.

20.21.

Payments,Payments in an amount not to exceed $16,150, received as compensation for personal injury, not including by the judgment debtor or by a person upon whom theiary loss, judgment debtor is dependent at the time the payment is rec21.ed.Payments received as compensation for the wrongful death of a person upon whom the judgment debtor was dependent at the time of the wrongful death, to the extent reasonably necessary for the support of the judgment debtor and any dependent of the judgment debtor.

Payments received as compensation for the loss of future earnings of the judgment debtor or of a person upon - 80th Session (2019) – 15 – whom the judgment debtor is dependent at the time the payment is received, to the extent reasonably necessary for the support of the judgment debtor and any dependent of the judgment debtor.

26.NRS 78.746 except as set forth in that section.bsection 2 of  These exemptions may not apply in certain cases such as proceedings to enforce a judgment for support of a child or a judgment of foreclosure on a mechanic’s lien.

Stock of a corporation described in subsection 2 of NRS 78.746 except as set forth in that section.

- *AB481* – 15 –  These exemptions may not apply in certain cases such as proceedings to enforce a judgment for support of a child or a judgment of foreclosure on a mechanic’s lien.

PROCEDURE FOR CLAIMING EXEMPT PROPERTY If you believe that the money or property taken from you is exempt or necessary for the support of you or your family, you must file with the clerk of the court on a form provided byclaim of exemption must be served upon the clerksheriff, anthethe executedgarnishee claimand the judgment creditor within 10 days after the notice of exemption.execution or garnishment is served on you by mail pursuant to NRS 21.076 which identifies the specific property that is being levied on.

AThe copyproperty of the claim of exemption must be served upon the sheriff, the garnishee and the judgment creditor within 10 days after the notice of execution or garnishment is served on you by mail pursuant to NRS 21.076 which identifies the specific released by the garnishee or the sheriff within 9 judicial days after you serve the claim of exemption upon the sheriff, garnishee and judgment creditor, unless the sheriff or garnishee receives a copy of an objection to the claim of exemption and a notice for a hearing to determine the issue of exemption.

The objection to the claim of exemption and notice for the hearing - 80th Session (2019) – 16 – to determine the issue of exemption must be filed within 8 judicial days after the claim of exemption is served on the judgment creditor by mail or in person and served on the judgment debtor, the sheriff and any garnishee not less than 5 judicial days before the date set for the hearing.

You may be able to have your property released more quickly if you mail to the judgment creditor or the attorney of the judgment creditormay writteninclude, proofwithout limitation, a letter from the government, an annual statement from a pension fund, receipts for payment, copies of checks, records from financial institutions or any other document which demonstrates that the propertymoney in your account is exempt.

SuchIF proofYOU mayDO include,NOT withoutFILE limitation,THE aEXECUTED letterCLAIM fromOF theEXEMPTION government,WITHIN anTHE annualTIME statementSPECIFIED, fromYOUR aPROPERTY pensionMAY fund,BE receiptsSOLD forAND payment,THE copiesMONEY ofGIVEN checks,TO recordsTHE fromJUDGMENT financialCREDITOR, institutionsEVEN -IF *AB481*THE –PROPERTY 16OR –MONEY orIS anyEXEMPT. other document which demonstrates that the money in your account is exempt.

4 IF YOU DO NOT FILE THE EXECUTED CLAIM OF EXEMPTION WITHIN THE TIME SPECIFIED, YOUR PROPERTY MAY BE SOLD AND THE MONEY GIVEN TO THE JUDGMENT CREDITOR, EVEN IF THE PROPERTY OR MONEY IS EXEMPT.

You mayheld makeon that motionmotion. any time before trial.

Aany hearingtime willbefore betrial. held on that motion.

A hearing will be IF YOU DO NOT FILE THE MOTION BEFORE THE TRIAL, YOUR PROPERTY MAY BE SOLD AND THE MONEY GIVEN TO THE PLAINTIFF, EVEN IF THE PROPERTY OR MONEY IS EXEMPT OR NECESSARY FOR THE SUPPORT OF YOU OR YOUR FAMILY.

Sec.

4.

NRS 115.010 is hereby amended to read as follows:

The homestead is not subject to forced sale on: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.

execution or any final process from any court, except as otherwise otherwise required by federal law., and NRS 115.090 and except as 2.

The exemption provided in subsection 1 extends only to that amount of equity in the property held by the claimant which does - 80th Session (2019) – 17 – not exceed [$550,000] $605,000 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.

(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 - *AB481* – 17 – 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 spouses, when that relation exists.

and (b) Any lien even if prior consent has been given through the acceptance of property subject to any recorded declaration of restrictions, deed restriction, restrictive covenant or equitable servitude,pursuant specificallyto includingNRS any116.3116 or 117.070,y lien in favor of an association pursuant to NRS 116.3116 or 117.070,  unless a waiver for the specific obligation to which the judgment relates has been executed by all allodial titleholders of the property.

Any declaration of homestead which has been filed before July 1, 2007, shall be deemed to have been amended on that date by extending the homestead exemption commensurate with any increase in the amount of equity held by the claimant in the property selected and claimed for the exemption up to the amount permitted by law on that date, but the increase does not impair the right of any - 80th Session (2019) – 18 – creditor to execute upon the property when that right existed beforenybefore July 1, 2007.

If it appears, upon the report, to the satisfaction of the judge that the property can be thus divided, the judge shall order the - *AB481* – 18 – excess to be sold under execution.

If it appears that the property cannot be thus divided, and the amount of equity held by the claimant in the property exceeds the exemption allowed by this chapter, the judge shall order the entire property to be sold, and out of the proceeds the sum of [$550,000] $605,000 to be paid to the defendant in execution, and the excess to be applied to theo the satisfaction on the execution.

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