Document Type

Case Summary

Publication Date

5-3-2007

Case Synopsis

Debtor filed Chapter 7 bankruptcy and tried to claim that the security deposit for his residential lease was exempt under Nevada’s dwelling exemption. Trustee objected because debtor had no equity in the lease-hold. Due to a lack of state law precedent, the U.S. Bankruptcy Court for the District of Nevada submitted the following certified question to the Nevada Supreme Court: Is a security deposit in a residential lease exempt from the claim of creditors either as a part of an exempt dwelling under NRS 21.090(1)(m) or as a homestead under NRS 21.090(1)(l)? The Court concluded that it was not exempt under either statute.

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