Bankruptcy exemptions allow a debtor to protect property needed to work and live after a bankruptcy proceeding. Some of the exemptions outlined in Nebraska law increased effective July 19, 2018.
- Wildcard exemption. Nebraska’s wildcard exemption allows you to protect personal property of your choice up to a value of $5,000. Real estate and wages aren’t covered by this exemption. (Neb. Rev. Stat. § 25-1552.)
- Motor vehicle. Each debtor can protect equity in one motor vehicle up to $5,000 per vehicle. (Neb. Rev. Stat. § 25-1556(1)(e).)
- Personal goods. A file can protect an unlimited amount of immediate personal possessions, clothing, and professionally prescribed health aids. (Neb. Rev. Stat. § 25-1556(1)(a)-(c), (f).)
- Tools of the trade. A debtor can protect up to $5,000 of tools and implements used in a trade or profession. The exemption doesn’t extend to a motor vehicle. (Neb. Rev. Stat. § 25-1556(1)(d).)
For more information about protecting property in Nebraska, see How to File Bankruptcy in Nebraska.
Exemption figures change periodically. Avoid property loss by verifying all bankruptcy exemption amounts through independent research or by consulting with a local bankruptcy attorney.
Effective date: July 19, 2018