Existing law allows a judgment creditor to obtain a writ of execution, attachment or garnishment to levy on the property of a judgment debtor or defendant in certain circumstances. (Chapters 21 and 31 of NRS) With certain exceptions, existing law exempts certain property from execution, thereby prohibiting such property from being the subject of such a writ. (NRS 21.090-21.105) Among the property exempt from execution, certain property is exempt only up to a specified amount. For example, payments received by a judgment debtor or by a person upon whom the judgment debtor is dependent as compensation for personal injury that are not compensation for pain and suffering or actual pecuniary loss are exempt from execution to the extent that such payments do not exceed $16,150. (NRS 21.090) Additionally, under existing law, with certain exceptions, $605,000 in equity in property designated as a homestead, including certain payments made to a defendant or spouse in that amount upon the sale of homestead property under certain circumstances, is protected from a forced sale upon execution or any final process from any court. (NRS 21.090, 115.010, 115.050, 115.055) Sections 1, 4, 5 and 8-11 of this bill require the monetary amounts set forth in the provisions of existing law governing property exempt from execution to be adjusted on April 1, 2026, and every 3 years thereafter in amount equal to the percentage of increase or decrease in the Consumer Price Index for All Urban Consumers, West Region (All Items), as published by the United States Department of Labor for the period beginning on January 1 and ending on December 31 of the year immediately preceding the date of adjustment. Section 1 requires the Department of Business and Industry, on or before February 1 of each year in which an adjustment is required, to determine the amount of the adjustment, establish the adjusted amounts to take effect on April 1 of that year and post the adjusted amounts on the Internet website of the Department. Under existing law, the greater of the following amounts are exempt from execution: (1) 82 percent of a judgment debtor's disposable earnings for any workweek if his or her gross weekly salary or wage on the date the most recent writ of garnishment was issued was $770 or less; (2) 75 percent of a judgment debtor's disposable earnings for any workweek if his or her gross weekly salary or wage on the date the most recent writ of garnishment was issued exceeded $770; or (3) 50 times the federal minimum hourly wage. (NRS 21.090, 31.295) Sections 4 and 8 revise that exemption to instead exempt from execution $850 of the disposable earnings of a judgment debtor during a workweek and either 90 percent of the disposable earnings of the judgment debtor during that week that exceed $850, if the disposable earnings of the judgment debtor during that week are $1,200 or less, or 85 percent of the disposable earnings of the judgment debtor during that week that exceed $850, if the disposable earnings of the judgment debtor during that week are more than $1,200. Because sections 4 and 8 eliminate the use of a judgment debtor's gross weekly salary or wage in determining the amount of the exception, section 12 of this bill repeals provisions setting forth the manner in which gross weekly salary or wage must be determined. For the purposes of provisions governing the exemption from execution for the disposable earnings of a judgment debtor, existing law defines: (1) “earnings” to mean compensation paid or payable for personal services performed by a judgment debtor in the regular course of business; and (2) “disposable earnings” to mean 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. (NRS 21.090, 31.295) Sections 4 and 8 revise the definition of the term “earnings” to specify that the term includes compensation paid or payable for personal services performed by a judgment debtor in the regular course of business, regardless of whether the judgment debtor performed such services as an employee or independent contractor. Existing law exempts from execution: (1) $2,000 in a personal bank account if, within the 45 days immediately preceding the date on which a writ of execution or garnishment is levied on the account, money which is reasonably identifiable as exempt from execution has been electronically deposited into the account; or (2) if no such money has been deposited, $400. (NRS 21.105) Section 5 revises those exemptions to eliminate the exemption concerning money deposited within the 45 days immediately preceding the date on which the writ is levied and, instead, exempts $5,000 in a personal bank account, regardless of whether any money reasonably identifiable as exempt was deposited in the account before the writ is levied. Sections 2, 3, 6 and 7 of this bill revise the form of a writ of execution and of certain notices and interrogatories required to be served in connection with a writ of execution, attachment or garnishment, to reflect the changes set forth in sections 1, 4, 5 and 8-11.

Statutes affected:
As Introduced: 21.025, 21.075, 21.090, 21.105, 31.045, 31.290, 31.295, 115.010, 115.050, 115.055
BDR: 21.025, 21.075, 21.090, 21.105, 31.045, 31.290, 31.295, 115.010, 115.050, 115.055