The Nebraska Homestead Exemption

In bankruptcy, a homestead exemption protects equity in your home. Here, you'll find specific information about the homestead exemption in Nebraska. For general information about how the homestead exemption works in both Chapter 7 and Chapter 13 bankruptcy, read The Homestead Exemption in Bankruptcy. For more bankruptcy information, read Filing for Bankruptcy in Nebraska.

How Much Is the Homestead Exemption in a Nebraska Bankruptcy?

In Nebraska, you'll use Nebraska's state exemptions because the federal bankruptcy exemptions aren't available (some states allow residents to choose between the two sets). You'll find Nebraska's homestead exemption amount listed below. Contact a local bankruptcy lawyer for current amounts and to find out about filing considerations for spouses.

What Property Is Protected by the Nebraska Homestead Exemption?

In Nebraska, the homestead exemption applies to real property, including your home, condominium, or mobile home, as well as any appurtenances and the land on which the property is situated within the acreage and lot limits described above. The homestead exemption also applies to home sale proceeds for up to six months after the sale of your home.

The Nebraska homestead exemption is available only to married couples, unmarried people who can claim head of household, or unmarried people over 65. If you are single, not the head of a household, and younger than 65, you cannot use the Nebraska homestead exemption.

Example 1. If you own a house worth $100,000 and have a mortgage balance of $50,000, you have $50,000 of equity in the property. If you file a Chapter 7 bankruptcy, you can use the homestead exemption to protect all equity.

Example 2. Assume your mortgage is only $10,000 and you can exempt $60,000 of your $90,000 equity. The Chapter 7 bankruptcy trustee would likely sell your house, give you $60,000 for your exemption, and use what remains after sales costs to pay unsecured creditors. If you wanted to keep the home, you could file for Chapter 13 and pay the $30,000 nonexempt equity portion to unsecured creditors through the Chapter 13 plan.

When Can You Claim the Homestead Exemption in a Nebraska Bankruptcy?

You can file for bankruptcy in Nebraska after living there for more than 180 days. However, you must live in Nebraska much longer before using Nebraska exemptions—at least 730 days before filing, to be exact. Otherwise, you'd use the previous state's exemptions.

But suppose you lived in multiple states during the two years before filing for bankruptcy. In that case, you'd use the exemptions of the state you lived in for most of the 180 days before the two-year period immediately preceding your filing. (11 U.S.C. § 522(b)(3)(A).) Learn more about filing for bankruptcy after moving to a new state.

You'll also need to meet other timing and exemption requirements to prevent losing your home in bankruptcy. Find out more about keeping your home in Chapter 7 or Chapter 13 or consult a bankruptcy lawyer.

Finding the Nebraska Bankruptcy Homestead Exemption Statute

You'll find Nebraska's homestead exemption in the Nebraska Rev. Stat. §§ 40-101, 40-118 on the Nebraska Legislature website. Still, the best way to protect your assets is by consulting with a local bankruptcy lawyer.

Need More Bankruptcy Help?

Did you know Nolo has made the law easy for over fifty years? It's true, and we want to ensure you find what you need. Below you'll find more articles explaining how bankruptcy works. And don't forget that our bankruptcy homepage is the best place to start if you have other questions!

We wholeheartedly encourage research and learning, but online articles can't address all bankruptcy issues or the facts of your case. The best way to protect your assets in bankruptcy is by hiring a local bankruptcy lawyer.

Updated September 21, 2023