Bankruptcy Exemptions in Nebraska
What property you can keep in bankruptcy in Nebraska: homestead, vehicle, wildcard and retirement exemptions, and whether you can choose the federal exemptions.
Short answer: Nebraska has opted out of the federal exemptions. The state rejects the federal exemptions in 11 U.S.C. 522(d) and applies the exemptions in Nebraska statutes and the Nebraska Constitution to bankruptcy cases filed in Nebraska. Neb. Rev. Stat. § 25-15,105
| State or federal exemptions | Nebraska has opted out of the federal exemptions. The state rejects the federal exemptions in 11 U.S.C. 522(d) and applies the exemptions in Nebraska statutes and the Nebraska Constitution to bankruptcy cases filed in Nebraska. Source: Neb. Rev. Stat. § 25-15,105 |
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| Homestead exemption | A homestead of up to $120,000 in value, consisting of the dwelling house the claimant lives in, its appurtenances and the land it sits on: up to 160 acres outside an incorporated city or village, or, at the claimant's option, up to two contiguous lots inside one. It is exempt from judgment liens and from execution or forced sale, except as provided in sections 40-101 to 40-116. Source: Neb. Rev. Stat. § 40-101 |
| Car exemption | The debtor's interest in a motor vehicle, up to $5,970 for 2023 through 2027. The statute states $5,000; the Department of Revenue adjusts the figure every five years for inflation. Statute: https://nebraskalegislature.gov/laws/statutes.php?statute=25-1556 . Next adjustment is due in 2028 under the five-year cycle in § 25-1556(2). |
| Wildcard exemption | Each Nebraska resident may exempt personal property of any kind other than wages, up to $5,970 for 2023 through 2027 (the statute states $5,000, adjusted every five years by the Department of Revenue). The debtor lists the property owned and selects which items to claim. Statute: https://nebraskalegislature.gov/laws/statutes.php?statute=25-1552 |
| Retirement accounts | In bankruptcy and in collection of a money judgment, an interest in a stock bonus, pension, profit-sharing or similar plan or contract payable because of illness, disability, death, age or length of service is exempt to the extent reasonably necessary to support the debtor and dependents. The exemption does not apply if, within two years before the bankruptcy or judgment, the plan was set up or amended to increase contributions by the individual or an insider employer, or if the plan does not qualify under Internal Revenue Code section 401(a), 403(a), 403(b), 408 or 408A. Source: Neb. Rev. Stat. § 25-1563.01 |
| Wages | Garnishment of wages is limited to the lesser of 25% of weekly disposable earnings or the amount above 30 times the federal minimum hourly wage; for a head of a family, no more than 15%. These limits do not apply to support orders, certain bankruptcy court orders, or state or federal tax debts. 'Earnings' includes periodic pension or retirement payments. Wages are not covered by the general $5,000 (adjusted) personal property exemption; the wage statute governs them. |
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FAQ
Can you use the federal bankruptcy exemptions in Nebraska?
Nebraska has opted out of the federal exemptions. The state rejects the federal exemptions in 11 U.S.C. 522(d) and applies the exemptions in Nebraska statutes and the Nebraska Constitution to bankruptcy cases filed in Nebraska.
How much home equity is protected in bankruptcy in Nebraska?
A homestead of up to $120,000 in value, consisting of the dwelling house the claimant lives in, its appurtenances and the land it sits on: up to 160 acres outside an incorporated city or village, or, at the claimant's option, up to two contiguous lots inside one. It is exempt from judgment liens and from execution or forced sale, except as provided in sections 40-101 to 40-116.
Can I keep my car in bankruptcy in Nebraska?
The debtor's interest in a motor vehicle, up to $5,970 for 2023 through 2027. The statute states $5,000; the Department of Revenue adjusts the figure every five years for inflation.
Does Nebraska have a wildcard exemption?
Each Nebraska resident may exempt personal property of any kind other than wages, up to $5,970 for 2023 through 2027 (the statute states $5,000, adjusted every five years by the Department of Revenue). The debtor lists the property owned and selects which items to claim.
Are retirement accounts protected in bankruptcy in Nebraska?
In bankruptcy and in collection of a money judgment, an interest in a stock bonus, pension, profit-sharing or similar plan or contract payable because of illness, disability, death, age or length of service is exempt to the extent reasonably necessary to support the debtor and dependents. The exemption does not apply if, within two years before the bankruptcy or judgment, the plan was set up or amended to increase contributions by the individual or an insider employer, or if the plan does not qualify under Internal Revenue Code section 401(a), 403(a), 403(b), 408 or 408A.
Are wages protected in bankruptcy in Nebraska?
Garnishment of wages is limited to the lesser of 25% of weekly disposable earnings or the amount above 30 times the federal minimum hourly wage; for a head of a family, no more than 15%. These limits do not apply to support orders, certain bankruptcy court orders, or state or federal tax debts. 'Earnings' includes periodic pension or retirement payments. Wages are not covered by the general $5,000 (adjusted) personal property exemption; the wage statute governs them.
General legal information, not legal advice. Laws change and local rules can differ; check the linked official source or talk to a lawyer about your situation.