Nebraska Bankruptcy Laws

Nebraska has one bankruptcy court, the Nebraska Bankruptcy Court. It serves the entire state of Nebraska . Most people in Nebraska file under either Chapter 7 or Chapter 13. Only businesses and those with an extreme amount of assets and debt file Chap 11 BK.

What debts are not dischargeable in a Nebraska bankruptcy?

According to NebraskBankruptcy.com, the following debts cannot be discharged in either chapter 7 or chapter 13 Nevada bankruptcies:

• Back child support, alimony obligations and other debts dedicated to family support.
• Debts for personal injury or death caused by driving while intoxicated.
• Student loans, unless it would be an undue hardship for you to repay.
• Fines and penalties for violating the law, including traffic tickets and criminal restitution.
• Recent income tax debts (within 3 years) and all other tax debts.
• Debts you forget to list in your bankruptcy papers, unless the creditor learns of your bankruptcy case.

The following debts may be declared non-dischargeable by a bankruptcy judge in Chapter 7 if the creditor challenges your request to discharge them.

• Debts you incurred on the basis of fraud.
• Credit purchases of $1,150 or more for luxury goods or services made within 60 days of filing.
• Loans or cash advances of $1,150 or more taken within 60 days of filing.
• Debts from willful or malicious injury to another person or another person's property.
• Debts from embezzlement, larceny or breach of trust.
• Debts you owe under a divorce decree or settlement unless after bankruptcy you would still not be able to afford to pay them or the benefit you'd receive by the discharge outweighs any detriment to your ex-spouse (who would have to pay them if you discharge them in bankruptcy).

Nebraska Bankruptcy Exemptions
Exempt property is property that you are allowed to keep in a chapter 7 bankruptcy. State law determines what property is exempt. According to Lawyers.com, under Nebraska bankruptcy laws, you may keep:

• Homestead to $12,500 but not exceeding 160 acres.
• Personal property to $2,500.
• Immediate personal possessions.
• Household goods and furnishings to $1,500.
• Tools of trade to $2,400.
• Homestead proceeds of sale for six months.
• Earned income tax credit refund.
• Provisions and fuel for six months.
• All clothing.
• Professionally prescribed health aids.
• 75% of weekly disposable earnings.
• Pensions of disabled soldiers, sailors and marines as well as property purchased with the pension money to $2,000.
• Interest in qualified retirement plan if necessary for support.
• Lump sum or structured settlement for personal injury or wrongful death claim.
• Annuity contract, insurance proceeds and benefits.
• Certain retirement benefits
• Workers' compensation benefits
• Unemployment compensation

NOTE: These are the major bankruptcy exemptions. Check with your bankruptcy lawyer for a full exemptions list.

New Bankruptcy Law Changes - Outlines major changes you should know about in the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA), also known as the new bankruptcy laws.

This is important! The new bankruptcy law requires all debtors to fulfill two education requirements: a credit counseling course prior to filing and a financial management course before obtaining a discharge. Failure to complete either of these courses and file the appropriate certificates with the court will prevent a successful bankruptcy. The Chapter 13 Trustee will offer the required courses to Chapter 13 debtors, but Chapter 7 debtors are required to take the courses on their own.

Find a U.S. Trustee Approved Pre-Bankruptcy Counseling Provider and Post-Filing Debtor Education Provider.