Nebraska Bankruptcy Laws should be known by every resident of the state of Nebraska. While it is not a borrower’s intention to get into trouble for delayed payments on credit card bills, there are inevitable things that happen from time to time. There are many factors that can affect to mounting debts. In Nebraska, there has been an outpouring of inquiries about Nebraska bankruptcy laws in the last few years. Although the state laws do not alter federal laws, there are definite stipulations included in the state laws that apply specifically to Nebraska.
It is the duty of a debtor considering bankruptcy protection to know the basic federal and state bankruptcy laws. It is good to make an informed decision, and knowing what you’re up against and what to do will prove to be an advantage for you. It is also advisable to hire a lawyer who is licensed to operate on the state of Nebraska and whose forte is bankruptcy laws in the state. Should some pressing matters surface during bankruptcy application, your lawyer should know what to do.
For single, married couples, and head of household, two options are available. A debtor can either choose Chapter 7 or Chapter 13. Of the two, the commoner bankruptcy protection program is Chapter 7. Although this type of bankruptcy protection gives every debtor the chance to start anew, unsecured assets will be liquidated by the court so the proceeds will be distributed accordingly to the creditors you owe as per the priority arrangement worked out by the bankruptcy courts of Nebraska. To oversee the proceedings, a trustee randomly chosen by the court to handle your case will handle the whole process starting from the application review up to the liquidation of the assets.
For debtors who have regular monthly income way above the median income level used by state to compare for Chapter 7 bankruptcy protection approval, the alternative is Chapter 13 bankruptcy protection program. Unlike the previous chapter where your debts may be erased, Chapter 13 gives you the chance to pay the amount you owe in a monthly installment method outlined in the repayment plan devised by the debtor. This repayment plan will be submitted to the court together with other paperwork and subject to the court’s approval before implementation. Once approved, you will be given a minimum of three years and a maximum of 5 years to complete all your payments. During this period, an automatic stay is issued to creditors to prevent them from making round-the-clock calls and sending a number of payment bills.
Nebraska bankruptcy laws have provisions for secure and unsecure assets. For unsecure assets, during bankruptcy application, these can be seized by the creditors to pay off your debts. Secure assets are belongings they can keep when starting anew. The state laws define the following as exemptions:
• A home not to exceed 160 acres with a value of up to $60,000;
• A vehicle worth $2,400 provided it is used to go to work;
• 75% of earned, but unpaid wages per week;
• $2,500 worth of personal belongings;
• Household goods and furniture amounting to $1,500; and
• Benefits such as health aids, insurance proceeds, and compensation benefits.
Before you make the ultimate decision to invoke your right for bankruptcy protection, the federal court asks every debtor to enroll in a credit counseling program to be taken 180 days before the formal application.