If you live in Nebraska and have creditors harassing you, may be considering filing bankruptcy. You may be wondering, if you do decide to file bankruptcy in Nebraska, what property can you keep?
Chapter 7 Bankruptcy is the most common and simplest bankruptcy individuals can file, and it is commonly called a liquidation of your assets.
In a Chapter 7 Bankruptcy filing, state and/or federal exemptions are extended to bankruptcy filers to allow them to keep certain assets, thus, providing them with a chance to completely start over. These exemptions involve asset exemption status from the sale of your assets. Once you have filed for bankruptcy protection and listed all of your assets, a court-appointed trustee will gather and sell your non-exempt property and will use the proceeds from the sale to pay your creditors.
Chapter 13 Bankruptcy, called a wage earner’s plan, enables individuals with regular income to develop a plan to repay all or part of their debts. Chapter 13 Bankruptcy allows you to keep all of your assets as long as you can make the required payments on secured loans.
In Nebraska, exempt property listed under various chapters of the Nebraska Civil Codes includes the following:
- Homesteaded property including: a dwelling claimant resides, a quantity of contiguous land not exceeding two lots in city or village, not exceeding l60 acres if not in a city or village, and not to exceed $12,500 in value; sale proceeds are exempt up to six months after the sale of the homestead; and you may record the homestead declaration upon judgment if there is no lien on the property.
- Personal property including: immediate personal possessions; all necessary wearing apparel; household furnishings, household goods, household computers, household appliances, books, or musical instruments not to exceed $1500; any professionally prescribed health aids; burial lots; crypts, lots, tombs, niches, vaults: and perpetual care funds.
- Tools of your trade including: implements, tools, or professional books or supplies held for use in the principal trade or business; may include one motor vehicle used in connection with his or her principal trade or business or to commute to and from his or her principal place of trade or business; and may not exceed the aggregate amount of $2400.
- Insurance and award benefits including: personal injury or wrongful death recoveries; loan values or cash values of all life insurance contracts and in all proceeds, cash values, or benefits accruing under all annuity contracts owned by such individual life insurance or annuity contract proceeds not to exceed $100,000; and fraternal benefit society benefits.
- Pensions including: county employees; ERISA-qualified benefits needed for support; military disability benefits not to exceed $2000; school employees; and state employees.
- Public benefits including: aid to the disabled, blind, aged, AFDC; unemployment compensation; workers’ compensation.
- Wages including a minimum 85% of earned but unpaid wages or pension payments for head of family and 75% for all others.
- Miscellaneous exemptions include property owned by a business partnership and using an exemption of $2500 for personal property instead of a homestead exemption.
Exemptions listed in this article are for informational purposes only. To obtain the most up to date information on various Nebraska laws, contact a bankruptcy lawyer.
If you need relief from the stress of debt and you live in or around the metropolitan areas of Omaha or Lincoln, Nebraska, contact us at www.betterbankruptcy.com .We will help you find a bankruptcy attorney in your area who will answer your bankruptcy questions.
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