February 6, 2019
You won’t lose everything when filing for bankruptcy in Nebraska. You’ll be able to use Nebraska’s bankruptcy exemptions to protect property you’ll need to work and live, such as your home, personal items, and a retirement account.
Find out more about filing a Nebraska bankruptcy case.
Some states allow residents to choose between the state and the federal bankruptcy exemptions, but the option isn’t available in Nebraska. You’ll use Nebraska’s state exemptions and, if helpful, the federal nonbankruptcy exemptions.
Here are some of the more common exemptions in Nebraska. When reviewing them, you’ll want to keep these things in mind:
40-101 – 40-118 - $60,000 of equity in a residential property not to exceed 160 acres.
25-1556(e) – Equity in one motor vehicle per debtor up to $5,000.
25-1552(1) - $5,000 of any personal property (not real estate or wages).
12-517 - Burial plot.
25-1556(1), (2), (3), and (5) – Clothing; health aids; personal possessions; household goods and furnishings to $3,000.
25-1563.02 - Recovery for personal injuries.
25-1558 - For the head of household, a minimum 85% of earned but unpaid weekly earnings or pension payments. For all others, the greater of the following: 30 times the federal minimum hourly wage or 75% of earned but unpaid earnings.
11 U.S.C. § 522 - Tax exempt retirement accounts (including 401(k)s, 403(b)s, profit sharing and money purchase plans, SEP and SIMPLE IRAs, and defined benefit plans).
11 U.S.C. § 522(b)(3)(C)(n) - IRAS and Roth IRAs to maximum (amount changes).
23-2322 - County employees.
25-1559 - Military disability benefits to $2,000.
25-1563.01 - ERISA-qualified benefits needed for support including IRAs and Roth IRAs.
48-1401 - Public employees' deferred compensation.
79-948 - School employees.
84-1324 - State employees.
48-149 - Workers' compensation.
48-647 - Unemployment compensation.
68-148 - General assistance to the poor.
68-1013 - Aid to blind, aged, and disabled; public assistance.
25-1553 - Earned income tax credit.
Tools of the Trade
25-1556(4) - Tools or equipment up to $5,000, but not a motor vehicle.
44-371 - Life insurance or annuity contract proceeds up to $100,000.
44-1089 – Fraternal benefit society benefits to $10,000.
67-325(2(c) – Some partnership property.
Add any applicable federal nonbankruptcy exemptions.
Some people can keep all assets, but that isn’t always true. Here’s what will happen to nonexempt property:
You’ll learn more about Chapter 7 and 13 in Which Type of Bankruptcy is Right for Me?
This list includes the majority of bankruptcy exemptions available in Nebraska. However, doesn’t include all exemptions. Also, states often create qualification requirements for specific exemptions, and Nebraska might have changed the amounts since this list was last updated. Check the Nebraska Revised Statutes or with a local bankruptcy lawyer.
To learn more about bankruptcy exemptions, the state exemption system, and the homestead exemption rules, read Bankruptcy Exemptions – What Can I Keep When I File for Bankruptcy?