Nebraska Bankruptcy Law
Bankruptcy Courts in Nebraska
If you live in Nebraska and are considering filing for bankruptcy, your case will be handled in the U.S. Bankruptcy Court for the District of Nebraska, which has two main locations, or divisions: Omaha and Lincoln. You’ll file your case in the division that covers the county where you live or where your primary property or business is located.
All Nebraska bankruptcy cases follow federal bankruptcy law, but the court also has its own local rules and procedures that supplement those laws. Bankruptcy court decisions are guided and reviewed by the by the U.S. Court of Appeals for the Eighth Circuit, which also covers Iowa, Missouri, Minnesota, Arkansas, North Dakota, and South Dakota. Because local rules and exemption limits can be complex, it’s best to work with a bankruptcy attorney who can make sure your filing is complete and your property fully protected.
Where You File Depends on Where You Live
Omaha Division
The Omaha Division serves the eastern half of Nebraska, including the greater Omaha metropolitan area and surrounding counties.
Counties Served by the Omaha Division
Burt • Cass • Colfax • Cuming • Dakota • Dodge • Douglas • Nemaha • Otoe • Sarpy • Saunders • Thurston • Washington • Wayne
Lincoln Division
The Lincoln Division serves central and southeastern Nebraska.
Counties Served by the Lincoln Division
Adams • Antelope • Boone • Box Butte • Boyd • Buffalo • Butler • Cedar • Chase • Cherry • Clay • Dawes • Dawson • Dixon • Dundy • Fillmore • Franklin • Frontier • Furnas • Gage • Garfield • Gosper • Greeley • Hall • Hamilton • Harlan • Hayes • Hitchcock • Holt • Howard • Jefferson • Johnson • Kearney • Keith • Knox • Lancaster • Lincoln • Logan • Loup • Madison • McPherson • Merrick • Nance • Nuckolls • Pawnee • Perkins • Phelps • Pierce • Platte • Polk • Red Willow • Richardson • Rock • Saline • Scotts Bluff • Seward • Sheridan • Sherman • Sioux • Stanton • Thayer • Thomas • Valley • Webster • Wheeler • York
If you’re uncertain which division covers your county, a bankruptcy attorney can confirm your filing location and ensure your documents are properly prepared.
Bankruptcy Filing Trends in Nebraska
Each year, thousands of Nebraskans file for bankruptcy to stop creditor harassment, prevent foreclosure, or eliminate overwhelming debt. Chapter 7 filings, which discharge unsecured debts such as credit cards and medical bills, remain the most common, followed by Chapter 13 repayment plans that help homeowners and wage earners catch up on missed payments while keeping their property.
The Omaha Division typically records the highest number of consumer filings, followed by the Lincoln Division and nearby counties. These filings show how many Nebraska residents each year use bankruptcy to stop collection actions and rebuild financial stability.
Nebraska Exemptions — What You Can Keep
Filing for bankruptcy doesn’t mean losing everything you own. Nebraska law protects certain property called exempt property, which includes items you need to live and work. Exempt property is protected by law and cannot be taken or sold to pay creditors.
Nebraska does not allow the use of federal exemptions, meaning debtors must use exemptions provided by state law. A married couple filing jointly may each claim the full amount of every exemption in property they jointly own.
Below are examples of the most common exemptions available to Nebraska residents:
| Type of Property | Amount You Can Protect (Individual / Joint) |
|---|---|
| Homestead (up to 160 acres or residential lot) | $120,000 / $120,000 |
| Proceeds from sale of homestead (6 months) | same as above |
| Motor vehicle (one per debtor) | $5,970 / $11,940 |
| Household goods and furnishings | $3,582 / $7,164 |
| Tools of trade (other than vehicle) | $5,970 / $11,940 |
| Clothing and immediate personal possessions | 100 % |
| Wildcard (any personal property) | $5,970 / $11,940 |
| Health aids | 100 % |
| Health savings account (HSA) | $25,000 / $50,000 |
| Retirement benefits (qualified plans) | Amount reasonably necessary for support |
| State and public employee retirement plans | 100 % |
| College savings plan (529 account) | 100 % |
| Annuity or insurance proceeds | $100,000 / $200,000 |
| Personal-injury or wrongful-death settlement | Reasonably necessary for support |
| Burial plots and cemetery funds | Up to 360 acres or reasonable value |
| Public assistance, unemployment, workers’ compensation, and disability benefits | 100 % |
| Wages (disposable earnings) | Greater of 75 % or 30× federal minimum wage (85 % if head of household) |
These exemptions allow most filers to keep their homes, vehicles, and retirement savings. Because exemption planning is critical, a bankruptcy attorney can help you claim every protection available under Nebraska law.
Steps and Local Requirements
Credit counseling. Before filing, you must complete a credit counselling course from an approved provider. A second debtor education course is required before discharge.
Means test. To qualify for Chapter 7, your income must be below Nebraska’s median or pass a means-test calculation comparing your income and expenses.
Filing fees. The filing fee is $338 for Chapter 7 and $313 for Chapter 13. You may request to pay in installments or apply for a waiver if you cannot pay in full.
Meeting of creditors. About a month after filing, you’ll attend a brief “341 meeting.” It isn’t held before a judge. A bankruptcy trustee will verify your identity and review your paperwork.
In Nebraska, meetings are typically held virtually or in person in Omaha, Lincoln, or North Platte, depending on where your case was filed.
Local rules and forms. The court’s website lists all local rules and required forms. Following them carefully helps your case proceed smoothly.
What This Means for You
Filing for bankruptcy in Nebraska can give you a fresh financial start and stop most collection actions immediately. The automatic stay halts lawsuits, foreclosures, garnishments, and repossessions.
Most filers keep their homes, vehicles, and personal property. Because bankruptcy involves complex eligibility rules, strict deadlines, local procedures, and specific property protections under Nebraska law, it’s best to consult an experienced bankruptcy attorney before filing.
An attorney can help you:
- Decide whether Chapter 7 or Chapter 13 is best for your situation
- Protect your property using Nebraska’s exemptions
- Complete the required counseling courses
- File all forms accurately and meet local deadlines
With proper preparation and legal guidance, bankruptcy can help you eliminate unmanageable debt and begin rebuilding financial stability.
