Nebraska Bankruptcy Exemptions

Federal bankruptcy exemptions are not available in the State of Nebraska.

There is property that you can exempt or protect from creditors when you file bankruptcy. You have the option of utilizing the state exemptions. This property can be kept after you file for bankruptcy. Be aware that there are certain debts, which you will not be able to erase in bankruptcy. These are non-dischargeable debts.

There are some limits on certain exemptions such as equity that you have in a home or in a vehicle. The difference between the cost of the item and the amount owed on the item is the definition of equity. If the item, such as home or vehicle, secured by a loan and payments are made on time, the equity is protected by your exemptions. A debtor must generally pay the trustee the value of the non-exempt property to keep the property. If you choose to keep the property, continual timely payments ensure that the property is protected through the bankruptcy.

This is a list of some of the available exemption in the State of Nebraska. You can obtain and more detailed list of exemptions by contacting a qualified Nebraska bankruptcy attorney in your area. They will be able to list and explain all of the state exemptions. There is certain property, which is excluded or exempt that the debtor can keep based on their specific situation and personal income.

The best way to determine which exemptions to utilize is to meet with a qualified and proven bankruptcy attorney which can evaluate your individual case and guide you through the process. Contact an attorney today.

For married couples filing jointly in bankruptcy, each can claim a full set of exemptions, unless otherwise noted.

Assets

Homestead: Head of household or married debtor, $12,500, Cannot exceed 2 lots in village or city, 160 acres elsewhere, Sale proceeds exempt 6 months after sale (husband and wife may not double)

Pensions: Tax-exempt retirement accounts, including 401(k)s, 403(b)s, SEP and SIMPLE, IRAs, defined benefit plans, profit sharing and money purchase plans. Traditional and ROTH IRAs to $1,095,000 per person, ERISA qualified benefits including IRAs and ROTH IRAs needed for support, State employees, County employees, School employees, Military disability benefits, Deferred compensation of public employees

Insurance: Life insurance proceeds and avails to $100,000, Fraternal benefit society benefits to $100,000 loan value unless beneficiary convicted of a crime related to benefits

Personal Property: Personal possessions, Clothing, Burial plot, crypts, lots, niches, vaults, tombs, Health aids, Perpetual care funds, Personal injury recoveries, Medical or health savings accounts to $25,000, Personal computer, books, musical instruments, household electronics, furniture, household goods and appliances up to $1,500

Public Benefits: Workers’ compensation, Unemployment compensation, General assistance, Aid to blind, aged or disabled, Public assistance

Tools of Trade: Tools or equipment including vehicle used in or for commuting to principal place of business up to $2,400 (husband and wife may double)

Wages: Minimum 85% of earned but unpaid weekly disposable earnings or pension payments for head of family; minimum 75% of earned but unpaid weekly disposable earnings or 30 times the federal hourly minimum wage, whichever is greater; bankruptcy judge may authorize more for low-income debtors

Wildcard: In lieu of homestead, $2,500 of any personal property, except wages

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