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.
Cox, Judy Carol, "Summary of Savage v. Pierson, 123 Nev. Adv. Op. 12" (2007). Nevada Supreme Court Summaries. 501.