The Nebraska bankruptcy exemptions chart, see below, details the property you can exempt or protect from creditors when you file bankruptcy in Nebraska. You may exempt any property that falls into one of the exemptions categories below, up to the dollar amount listed. You will be able to kept this exempted property after you file bankruptcy. Please note that there are certain debts which you will not be able to erase in bankruptcy. (see Non-dischargeable Debts)
An exemption limit applies to any equity you have in the property. Equity is the difference between the value of the property and what is owed on the property. For example, a car valued at $5000 with a loan of $4500 has an equity value of only $500.
If the property is secured by a loan, such as a car or home, and you are current on the payments and the equity is covered by your exemptions, you may elect to keep making payments on the loan and keep this property through the bankruptcy. If all the equity is not covered by your exemptions the trustee may elect to liquidate this asset and distribute the proceeds. Generally, in this case, you would be entitled to the value of your exemption in the asset as a cash payment.
Bankruptcy law allows married couples filing jointly to each claim a full set of exemptions, unless otherwise noted.
To keep non-exempt property, a debtor must generally pay the trustee the value of the non-exempt property.
When you file bankruptcy in Nebraska you may also use certain federal exemptions in addition to your Nebraska exemptions.
ASSET | EXEMPTION DESCRIPTION | LAW SECTION |
Homestead | $12,500; cannot exceed 2 lots in city or village, 160 acres elsewhere; sale proceeds exempt 6 months after sale May record homestead declaration | 40-101, 40-111, 40-113 40-105 |
Insurance | Fraternal benefit society benefits to $10,000 loan value Life insurance or annuity contract proceeds to $10,000 loan value | 44-1089 44-371 |
Miscellaneous | Property of business partnership | 67-325 |
Pensions | County employees ERISA-qualified benefits needed for support Military disability benefits to $2000 School employees State employees | 23-2322 25-1563.01 25-1559 79-1060, 79-1552 84-1324 |
Personal Property | Burial plot Clothing needed Crypts, lots, tombs, niches, vaults Food and fuel to last 6 months Furniture & kitchen utensils to $1500 Perpetual care funds Personal injury recoveries Personal possessions | 12-517 25-1556 12-605 25-1556 25-1556 12-511 25-1563.02 25-1556 |
Public Benefits | Aid to disabled, blind, aged, AFDC Unemployment compensation Workers’ compensation | 68-1013 48-647 48-149 |
Tools of Trade | Equipment or tools to $1500 Husband and wife may double | 25-1556 In re Keller, 5 0 B.R. 23 (D.Neb. 1985) |
Wages | Minimum 85% of earned but unpaid wages or pension payments for head of family; 75% for all others; bankruptcy judge may authorize more for low-income debtors | 25-1558 |
Wild Card | $2500 of any personal property, except wages, in lieu of homestead | 25-1552 |
For more information on filing bankruptcy in Nebraska explore Nebraska Bankruptcy Law.
