Bankruptcy in Nebraska
If you live in Nebraska and financial stress has become part of your daily life, you’re not alone. Medical bills, credit card debt, job loss, or unexpected emergencies can quickly spiral out of control.
For many Nebraska residents, filing for bankruptcy can stop harassing calls, delay foreclosure, and erase certain debts altogether. Depending on your situation, you might qualify for Chapter 7 to eliminate unsecured debt, or Chapter 13 to restructure payments over time.
We connect Nebraska residents with knowledgeable bankruptcy attorneys who understand both the law and the stakes. If you’re ready to explore your options, take the first step toward financial peace by reaching out today.
Types of Bankruptcy in Nebraska
Bankruptcy is a legal process that gives individuals and businesses a chance to reset when debt becomes too much to manage. It can wipe out some or all qualifying debts and offer a clear path toward financial recovery. In NE, you must show that you’re facing a genuine financial hardship—one that prevents you from keeping up with your current obligations.
If you’re struggling to stay ahead of mounting bills, you may have options under Chapter 7, Chapter 11, or Chapter 13. Each chapter offers different forms of relief and applies to different financial situations. Choosing the right one depends on your income level, the assets you want to keep, and your long-term goals.
In Nebraska, bankruptcy cases are heard in the U.S. Bankruptcy Courts for the Northern, Middle, and Southern Districts. Your filing will be handled by the district that covers your county, with court locations in Birmingham, Montgomery, and Mobile.
Chapter 7 Bankruptcy
Chapter 7 bankruptcy can be a lifeline for people overwhelmed by debt, offering a chance to wipe the slate clean and rebuild from the ground up. But it’s not the right fit for everyone. Before you file, take a hard look at your income, assets, and overall financial picture.
Most people who qualify for Chapter 7 have little to no disposable income or have gone through a major financial shift—like job loss or medical hardship—that left them unable to stay current on bills. While this type of bankruptcy can discharge unsecured debt, it often comes with the sacrifice of personal property.
You might be required to give up your home, your car, or other valuables. On the upside, filing triggers an automatic stay that halts most collection efforts. Still, this protection has limits—it won’t stop all obligations. Court-ordered payments like child support or criminal restitution remain your responsibility, regardless of your filing status.
Before you can move forward with a Chapter 7 bankruptcy in Nebraska, you’ll need to pass the means test—a financial screening that determines if your income is low enough to qualify. The first part compares your household income to the state median, which currently sits at approximately $55,816 for a single filer.
If your income falls below that line, you likely meet the threshold. If it’s higher, the court will take a closer look at your expenses and financial obligations to see if you have enough disposable income to repay a portion of your debt. This step helps ensure that Chapter 7 is reserved for those who truly need a clean break.
Chapter 11 Bankruptcy
Chapter 11 isn’t your average bankruptcy—it’s a more advanced option typically used by businesses or individuals with complex financial obligations. Instead of erasing debt or forcing a sale of your assets, it gives you the opportunity to reorganize what you owe under a court-approved plan. That plan usually stretches over a period of four to eighteen months and is designed to make repayment more manageable.
The real advantage here is flexibility. You get to renegotiate terms with creditors and keep your property while working toward financial stability.
Filing for Chapter 11 bankruptcy comes with a long list of reporting requirements and detailed financial disclosures. You’ll need to give the court and your creditors a full breakdown of your financial situation—everything from what you own to what you owe, how much you earn, and how you plan to repay your debts.
Key forms include:
- Voluntary Petition for Individuals Filing for Bankruptcy (Form B101)
- Summary of Assets and Liabilities (Form B106)
- Schedules A/B through J (detailing property, debts, income, and expenses)
- Statement of Financial Affairs (Form B107)
- Chapter 11 Statement of Current Monthly Income (Form B122B)
- Creditor Matrix (list of names and contact info for all creditors)
- Schedule of Executory Contracts and Unexpired Leases (Form B106G)
- Disclosure Statement and Proposed Reorganization Plan
Chapter 13 Bankruptcy
Chapter 13 bankruptcy—often called the wage earner’s plan—offers a way for people with regular income to reorganize their debt without giving up important assets. In NE, once you file, the court will appoint a trustee to review your income, debts, and property to determine how much you can reasonably pay back.
Unlike Chapter 7, this process doesn’t involve liquidation. Instead, you’ll create a repayment plan lasting three to five years, structured around your income and the assets you want to protect. If you complete the plan successfully, you may also be eligible to have some remaining debt discharged.
Chapter 13 is designed for people with a steady income who are behind on bills but want to avoid foreclosure or repossession. It gives you the breathing room to reorganize your finances while shielding you from most collection actions. Unlike Chapter 7, it gives you the chance to make things right without surrendering your assets in the process.
The Bankruptcy Process in Nebraska
There’s rarely a perfect moment to file for bankruptcy—but if your debt is more than you can realistically repay within five years, it might be time to consider it. Bankruptcy can offer a structured way to stop the bleeding, reduce long-term damage, and begin rebuilding your financial life with a clean slate.
In Nebraska, the process starts by pulling together your full financial profile. That includes your income, monthly bills, total debts, and a list of any assets you own. This documentation gives the court the information it needs to evaluate your case. If anything is missing or incomplete, it could delay your filing—or result in outright denial—so accuracy and thoroughness matter from the beginning.
In Nebraska, anyone filing for bankruptcy must use the state’s exemption laws—federal exemptions are not an option. These exemptions determine what property you can protect during the process, making them a key part of your overall strategy. Choosing and applying these protections correctly can help you hold on to the assets you rely on while working toward financial relief.
Nebraska exemptions include:
- Homestead: Up to $60,000 in equity in your primary residence
- Motor vehicle: Up to $5,000 in equity
- Personal property: Up to $1,500 in household goods, clothing, appliances, and furniture
- Tools of the trade: Up to $2,400 in tools or equipment used in your profession
- Wages: Up to 85% of earned but unpaid wages
- Public benefits: Fully exempt, including unemployment, Social Security, and workers’ compensation
- Retirement accounts: Most tax-qualified pensions and IRAs are fully protected
Work With an Experienced Nebraska Lawyer
Nebraska’s specific exemption laws can make a real difference in what you’re allowed to keep, but navigating the process alone can be overwhelming. A single mistake on your paperwork or missed deadline could delay—or even derail—your case.
That’s why it’s worth speaking with a bankruptcy attorney who understands how Nebraska law applies to your situation. They can guide you step by step and help you avoid costly errors.
Submit a request online or call us today at (866) 345-6784 to get in touch with an experienced lawyer in your area!
About the Author
Aaron is a professional legal writer with a B.S. in English Education from Southern Illinois University – Carbondale. He has written, published, and edited thousands of legal articles for RequestLegalHelp, which has connected over 5 million people to legal help in the United States.
With over five years of experience writing thousands of legal articles for law firms across the U.S. and Canada, Aaron specializes in covering federal, state, and city-level legal issues ranging from auto accidents to wrongful terminations.
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