Nebraska Bankruptcy Guide

Nebraska Bankruptcy Overview

Nebraska offers solid bankruptcy protections including a homestead exemption of up to $60,000 (or $120,000 for married couples or heads of household) and the ability to choose between state and federal exemptions. Understanding Nebraska's specific exemption options and requirements is essential for protecting your assets during bankruptcy proceedings.

One significant advantage Nebraska offers is the choice between state exemptions and federal bankruptcy exemptions—you can select whichever set of exemptions better protects your property. This guide covers everything you need to know about filing Chapter 7 or Chapter 13 bankruptcy in Nebraska, including median income thresholds, exemption limits, and court locations.

2026 Nebraska Median Income for Chapter 7 Bankruptcy

To qualify for Chapter 7 bankruptcy in Nebraska, your household income must generally be at or below the state median income for your household size. If your income exceeds these thresholds, you may still qualify through the means test or may need to file Chapter 13 instead.

Nebraska Bankruptcy Exemptions: State vs. Federal

Nebraska is one of the states that allows you to choose between Nebraska state exemptions or federal bankruptcy exemptions. You cannot mix and match—you must choose one system or the other. Most Nebraska filers choose the system that better protects their specific assets.

Nebraska State Exemptions

Nebraska state exemptions provide good protection with some unique features.

Nebraska Homestead Exemption (State)

Up to $60,000 (or $120,000 if you're married filing jointly or head of household with a dependent).

Nebraska's homestead exemption protects equity in your primary residence. The amount depends on your filing status:

• Single Filer: Up to $60,000 in home equity
• Married Filing Jointly: Up to $120,000 in home equity
• Head of Household with Dependent: Up to $120,000 in home equity

The homestead exemption applies to houses, condominiums, mobile homes, and any dwelling you use as your principal residence, along with up to 160 acres of land if used for agricultural purposes (or up to 2 city lots otherwise).

Nebraska Vehicle Exemption (State)

Up to $2,400 in value (or $5,000 if you're married filing jointly).

Nebraska's vehicle exemption under state law is relatively low:

• Single Filer: Up to $2,400 in vehicle equity
• Married Filing Jointly: Up to $5,000 in vehicle equity (for all vehicles combined)

This is one of the lower vehicle exemptions in the nation. If you have a vehicle with significant equity, you may want to consider using federal exemptions instead, which offer $4,450 per vehicle plus wildcard protection.

Nebraska Personal Property Exemptions (State)

Nebraska provides specific exemptions for various types of personal property:

• Household Goods and Furnishings: Up to $1,500 total for clothing, kitchen utensils, and household furnishings
• Personal Possessions: Up to $5,000 for personal possessions of the debtor and dependents
• Jewelry: Up to $2,500 for jewelry and articles of adornment
• Tax-Exempt Retirement Accounts: Unlimited protection for IRAs (subject to federal limits), 401(k)s, pensions, and other qualified retirement plans
• Life Insurance: Up to $100,000 cash value; unlimited for proceeds if beneficiary is spouse, child, or dependent
• Tools of Trade: Up to $2,400 for equipment, tools, or books used in your profession or business
• Wildcard Exemption: Up to $2,500 for any personal property (can be used to supplement other exemptions)

Nebraska Wage and Income Exemptions (State)

• Wages: 75% of disposable earnings or 30 times the federal minimum wage per week (whichever is greater) is protected from garnishment
• Social Security Benefits: Unlimited protection
• Veterans Benefits: Unlimited protection
• Unemployment Benefits: Unlimited protection
• Workers' Compensation: Unlimited protection
• Disability Benefits: Unlimited protection

Federal Bankruptcy Exemptions (Alternative)

Instead of using Nebraska state exemptions, you can elect to use the federal bankruptcy exemptions. These may be more favorable if you have limited home equity, significant vehicle equity, or diverse personal property.

Federal Homestead Exemption

Up to $27,900 ($55,800 for married couples filing jointly).

The federal homestead exemption is lower than Nebraska's exemption for married couples or heads of household ($120,000) but higher than the exemption for single filers ($60,000). If you're single with home equity between $27,900 and $60,000, Nebraska state exemptions are better. If you're single with less than $27,900 in equity, federal exemptions might offer better overall protection through the wildcard exemption.

Federal Vehicle Exemption

Up to $4,450 in value.

The federal vehicle exemption is significantly higher than Nebraska's $2,400 state exemption (or $5,000 for married couples). If you have a vehicle worth $3,000-$5,000 with minimal debt, federal exemptions typically provide better protection.

Federal Wildcard Exemption

Up to $1,475, plus up to $13,950 of any unused homestead exemption.

The federal wildcard can be very powerful for renters or those with minimal home equity. If you don't use the full federal homestead exemption, you can apply up to $13,950 of the unused portion to any property—vehicle equity, bank accounts, tax refunds, etc. Combined with the base $1,475 wildcard, you could protect up to $15,425 in personal property.

Other Federal Exemptions

• Household Goods: Up to $700 per item, $14,875 total
• Jewelry: Up to $1,875
• Tools of Trade: Up to $2,800
• Retirement Accounts: Unlimited for most qualified plans

Nebraska Bankruptcy Court

Nebraska has a single federal bankruptcy court district that covers the entire state. The U.S. Bankruptcy Court for the District of Nebraska has courthouses in multiple cities to serve residents throughout the state.

District of Nebraska Court Locations

The District of Nebraska has two main courthouse locations:

• Omaha: 111 South 18th Plaza, Suite 1125, Omaha, NE 68102 (Main Courthouse)
• Lincoln: 1620 P Street, Suite 100, Lincoln, NE 68508

Cost of Filing Bankruptcy in Nebraska

The total cost of filing bankruptcy in Nebraska includes both court filing fees and attorney fees. Here's what to expect:

Court Filing Fees (2026)

• Chapter 7: $338
• Chapter 13: $313

These fees are set by federal law and are the same nationwide. In Chapter 7, you may be able to request a fee waiver if your income is below 150% of the federal poverty line, or you may request to pay the filing fee in installments over 120 days.

Attorney Fees in Nebraska

Attorney fees for bankruptcy in Nebraska vary by location, case complexity, and the attorney's experience. Here are typical ranges by city:

• Omaha: $1,000 - $1,700 for Chapter 7; $2,800 - $4,000 for Chapter 13
• Lincoln: $1,000 - $1,700 for Chapter 7; $2,800 - $4,000 for Chapter 13
• Bellevue: $1,000 - $1,600 for Chapter 7; $2,700 - $3,900 for Chapter 13
• Grand Island: $900 - $1,500 for Chapter 7; $2,500 - $3,700 for Chapter 13
• Kearney: $900 - $1,500 for Chapter 7; $2,500 - $3,700 for Chapter 13
• Norfolk: $850 - $1,400 for Chapter 7; $2,400 - $3,500 for Chapter 13

Chapter 13 attorney fees are typically paid through your repayment plan over 3-5 years, making bankruptcy more accessible even if you cannot afford the full fee upfront. Many Chapter 7 attorneys also offer payment plans for their fees.

Nebraska-Specific Bankruptcy Considerations

Agricultural Property and Farming Operations

Nebraska's homestead exemption includes protection for up to 160 acres if the property is used for agricultural purposes. This provides good protection for family farmers with farming homesteads. If your farming operation exceeds 160 acres, you may need to consider Chapter 12 bankruptcy, which is specifically designed for family farmers and offers more flexibility than Chapter 7 or Chapter 13.

Head of Household Status

Nebraska provides enhanced homestead protection ($120,000 instead of $60,000) for heads of household with dependents. To qualify as head of household, you must be unmarried (or considered unmarried for tax purposes) and pay more than half the costs of maintaining a home for yourself and a qualifying dependent. This can significantly increase the protection for single parents or those supporting elderly relatives.

Personal Possessions Exemption

Nebraska's $5,000 exemption for "personal possessions" is relatively broad and can include items beyond traditional household goods. This can cover electronics, sporting equipment, collections, and other personal items. Combined with the $2,500 wildcard, Nebraska state exemptions provide up to $7,500 in flexible protection for personal property.

Mobile Homes and Manufactured Housing

In Nebraska, mobile homes and manufactured housing can qualify for the homestead exemption if they are your primary residence. This is true whether the mobile home is on land you own or in a mobile home park. The homestead protection extends to the mobile home structure itself.

Nebraska Bankruptcy FAQs

Should I use Nebraska state exemptions or federal exemptions?

The choice depends on your specific assets. Use Nebraska state exemptions if: you're married or head of household with substantial home equity ($55,800-$120,000), or you value the $5,000 personal possessions exemption. Use federal exemptions if: you're single with limited home equity, you have a vehicle worth more than $2,400, or you want the flexibility of the federal wildcard exemption. A Nebraska bankruptcy attorney can analyze your situation and recommend the better option.

How long does Chapter 7 bankruptcy take in Nebraska?

A typical Chapter 7 bankruptcy case in Nebraska takes about 4-6 months from filing to discharge. The 341 Meeting of Creditors usually occurs 30-45 days after filing, and the discharge is typically granted 60-90 days after the meeting, assuming no complications or objections arise.

Can I keep my home in Nebraska bankruptcy?

Yes, if your home equity doesn't exceed the applicable homestead exemption ($60,000 for single filers, $120,000 for married couples or heads of household with dependents). You must continue making mortgage payments if you have a home loan. If you're behind on mortgage payments, Chapter 13 may be a better option to catch up while keeping your home.

What is the head of household exemption in Nebraska?

Nebraska provides a $120,000 homestead exemption (double the standard $60,000) for heads of household with dependents. To qualify, you must be unmarried and pay more than half the costs of maintaining a home for yourself and a qualifying dependent (typically a child, but can include other relatives). This significantly increases protection for single parents and those supporting family members.

How do I protect my car in Nebraska bankruptcy?

Under Nebraska state exemptions, you can protect up to $2,400 in vehicle equity ($5,000 if married filing jointly). Under federal exemptions, you can protect $4,450 in vehicle equity, plus potentially apply unused homestead exemption (up to $13,950) and the base wildcard ($1,475) to a vehicle. For most people with vehicle equity exceeding $2,400, federal exemptions provide better protection.

What happens if my farm exceeds 160 acres in Nebraska?

If your agricultural property exceeds 160 acres, only the first 160 acres (including your residence) may be protected by the homestead exemption. The equity in excess acreage could potentially be liquidated by the bankruptcy trustee in Chapter 7. If you have substantial farmland beyond 160 acres, consult with a Nebraska bankruptcy attorney about Chapter 12 bankruptcy, which is specifically designed for family farmers.

Can I file bankruptcy on my own in Nebraska without an attorney?

While it's legally possible to file bankruptcy without an attorney (called filing "pro se"), it's generally not recommended. Bankruptcy law is complex, and Nebraska's choice between state and federal exemptions makes the decision-making process even more important. Mistakes can result in losing property you could have protected or having your case dismissed. Most Nebraska attorneys offer free or low-cost initial consultations.

How does bankruptcy affect my credit score in Nebraska?

Bankruptcy will negatively impact your credit score initially, typically dropping it by 130-200 points for those with previously good credit. A Chapter 7 bankruptcy remains on your credit report for 10 years, while Chapter 13 remains for 7 years. Many Nebraska filers find they can qualify for new credit within 2-3 years after discharge, especially if they practice good credit habits post-bankruptcy.

Will I lose my tax refund if I file bankruptcy in Nebraska?

Tax refunds can be protected in Nebraska bankruptcy using available exemptions. Under state exemptions, you can use the $2,500 wildcard plus potentially the personal possessions exemption. Under federal exemptions, you can use wildcard protection (up to $15,425 if you don't use full homestead). The Earned Income Tax Credit (EITC) portion has additional federal protections. Many Nebraska attorneys recommend strategic timing of your bankruptcy filing relative to tax season.

How much does it cost to file bankruptcy in Nebraska?

The court filing fee is $338 for Chapter 7 and $313 for Chapter 13. Attorney fees in Nebraska typically range from $850-$1,700 for Chapter 7 and $2,400-$4,000 for Chapter 13, depending on your location and case complexity. Many attorneys offer payment plans, and Chapter 13 attorney fees are usually paid through your repayment plan over time.

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