Nebraska Debt Collection Laws: Time Limits, Garnishment and Your Rights
Nebraska debt rules: statute of limitations, wage garnishment limits, protected bank and home exemptions, judgments, collector rules and how to answer a debt lawsuit.
Quick answers for Nebraska
- Time limit to sue on a written contract
- 5 years for an action on a written agreement, contract or promise. Neb. Rev. Stat. § 25-205(1)
- Wage garnishment limit
- No more than the lesser of 25% of weekly disposable earnings or the amount above 30 times the federal minimum wage; for a head of a family, no more than 15%. Neb. Rev. Stat. § 25-1558
- Money protected in a bank account
- No separate bank account exemption, but a debtor may claim bank funds under the general exemption for any personal property other than wages: $5,970 for 2023-2027. Neb. Rev. Stat. § 25-1552; Nebraska Revenue Ruling 2023-1
Last verified: 2026-10-26
Time limits
| Time limit to sue on a written contract | 5 years for an action on a written agreement, contract or promise. Source: Neb. Rev. Stat. § 25-205(1) |
|---|---|
| Time limit for credit cards and open accounts | 4 years for a contract not in writing, express or implied. Whether a credit card account is a written contract (5 years) or not (4 years) depends on the documents and court decisions. Source: Neb. Rev. Stat. § 25-206 |
| Can a payment restart the clock? | Yes. A voluntary partial payment of principal or interest, or a written acknowledgment or written promise to pay, starts a new limitations period from the date of the payment, acknowledgment or promise. Source: Neb. Rev. Stat. § 25-216 |
| How long a judgment lasts | A judgment becomes dormant (and stops being a lien) if no execution is issued within 5 years after it is entered, or within 5 years after the last execution. A dormant judgment can be revived, but only if the revival action is started within 10 years after it became dormant. § 25-1420: https://nebraskalegislature.gov/laws/statutes.php?statute=25-1420 |
Garnishment and what creditors can't take
| Wage garnishment limit | No more than the lesser of 25% of weekly disposable earnings or the amount above 30 times the federal minimum wage; for a head of a family, no more than 15%. The limits do not apply to support orders, Chapter 13 bankruptcy orders, or tax debts. An employer may not fire a worker over a garnishment for one debt. Source: Neb. Rev. Stat. § 25-1558 |
|---|---|
| Money protected in a bank account | No separate bank account exemption, but a debtor may claim bank funds under the general exemption for any personal property other than wages: $5,970 for 2023-2027. Directly deposited federal benefits such as Social Security, SSI and veterans' benefits are protected. Inflation-adjusted every 5 years (next in 2028). The statute text and the court's hearing-request form (CC 3:8N) still state $5,000. Statute: https://nebraskalegislature.gov/laws/statutes.php?statute=25-1552 |
| Homestead exemption | Up to $120,000 in value for the home the debtor lives in, with up to 160 acres outside a city or village, or up to two lots inside one. It protects against judgment liens and forced sale, with exceptions listed in the homestead statutes. Source: Neb. Rev. Stat. § 40-101 |
| Vehicle exemption | Up to $5,970 in a motor vehicle for 2023-2027. Statute text says $5,000; adjusted for inflation by the Department of Revenue every 5 years (next in 2028). Statute: https://nebraskalegislature.gov/laws/statutes.php?statute=25-1556 |
| Claiming an exemption | Garnishment: the court sends a Notice to Judgment Debtor with the garnishment. You must file a claim of exemptions and request for hearing (form CC 3:8N) with the court within 3 business days of receiving the notice, or you may lose the right to claim the exemption. Execution on property: file the Request for Hearing on the notice of exemptions form within 20 days of receiving it; the court holds a hearing within 10 days. Request for hearing form: https://supremecourt.nebraska.gov/sites/default/files/CC-3-8N.pdf. § 25-1516: https://nebraskalegislature.gov/laws/statutes.php?statute=25-1516 |
| Bankruptcy exemptions | Nebraska is an opt-out state: the federal bankruptcy exemptions are rejected and Nebraska's own exemptions apply in bankruptcy. Source: Neb. Rev. Stat. § 25-15,105 |
Debt collectors and interest
| Debt collector licensing | Yes. Collection agencies must be licensed under the Collection Agency Act by the Collection Agency Licensing Board, chaired by the Secretary of State. Regular employees of a single creditor, banks, and attorneys collecting in their own names are not 'collection agencies'; a creditor collecting its own debts under another name is. § 45-602 definitions: https://nebraskalegislature.gov/laws/statutes.php?statute=45-602 |
|---|---|
| Interest rate limits | Judgments entered on or after July 20, 2002 bear interest at 2 percentage points above the bond investment yield of the 26-week U.S. Treasury bill (first auction of each calendar quarter) in effect on the date the judgment is entered, from the date of judgment until paid. The rate does not apply where another law sets the rate or where the parties agreed in a contract to a different rate. |
Where to get help in Nebraska
Debt & Collections FAQ
What is the statute of limitations on debt in Nebraska?
5 years for an action on a written agreement, contract or promise.
How long can a creditor sue on a credit card debt in Nebraska?
4 years for a contract not in writing, express or implied.
Does making a payment restart the statute of limitations in Nebraska?
Yes. A voluntary partial payment of principal or interest, or a written acknowledgment or written promise to pay, starts a new limitations period from the date of the payment, acknowledgment or promise.
How long does a court judgment last in Nebraska?
A judgment becomes dormant (and stops being a lien) if no execution is issued within 5 years after it is entered, or within 5 years after the last execution. A dormant judgment can be revived, but only if the revival action is started within 10 years after it became dormant.
How much of my wages can be garnished in Nebraska?
No more than the lesser of 25% of weekly disposable earnings or the amount above 30 times the federal minimum wage; for a head of a family, no more than 15%. The limits do not apply to support orders, Chapter 13 bankruptcy orders, or tax debts. An employer may not fire a worker over a garnishment for one debt.
How much money in a bank account is protected from creditors in Nebraska?
No separate bank account exemption, but a debtor may claim bank funds under the general exemption for any personal property other than wages: $5,970 for 2023-2027. Directly deposited federal benefits such as Social Security, SSI and veterans' benefits are protected.
What is the homestead exemption in Nebraska?
Up to $120,000 in value for the home the debtor lives in, with up to 160 acres outside a city or village, or up to two lots inside one. It protects against judgment liens and forced sale, with exceptions listed in the homestead statutes.
Can a creditor take my car in Nebraska?
Up to $5,970 in a motor vehicle for 2023-2027.
Do debt collectors need a license in Nebraska?
Yes. Collection agencies must be licensed under the Collection Agency Act by the Collection Agency Licensing Board, chaired by the Secretary of State. Regular employees of a single creditor, banks, and attorneys collecting in their own names are not 'collection agencies'; a creditor collecting its own debts under another name is.
What is the maximum legal interest rate in Nebraska?
Judgments entered on or after July 20, 2002 bear interest at 2 percentage points above the bond investment yield of the 26-week U.S. Treasury bill (first auction of each calendar quarter) in effect on the date the judgment is entered, from the date of judgment until paid. The rate does not apply where another law sets the rate or where the parties agreed in a contract to a different rate.
How do I stop a garnishment or claim an exemption in Nebraska?
Garnishment: the court sends a Notice to Judgment Debtor with the garnishment. You must file a claim of exemptions and request for hearing (form CC 3:8N) with the court within 3 business days of receiving the notice, or you may lose the right to claim the exemption. Execution on property: file the Request for Hearing on the notice of exemptions form within 20 days of receiving it; the court holds a hearing within 10 days.
Which bankruptcy exemptions can I use in Nebraska?
Nebraska is an opt-out state: the federal bankruptcy exemptions are rejected and Nebraska's own exemptions apply in bankruptcy.
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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.