Eliminating Debt Using Nebraska Bankruptcy Law
If you are a resident of Nebraska and you just can’t seem to get ahead on financial matters, you may find yourself wondering if filing for bankruptcy is a good idea. If you have nowhere else to turn, it may be helpful to speak to an attorney o law firm that specializes in working with a Nebraska bankruptcy law in order to discharge your debt and eventually increase your credit score.
First, you will need to find out if you should file for chapter 7 or chapter 13 bankruptcy in order to get a fresh financial start. This is a big decision that takes a lot of thought. Although each bankruptcy case is unique, understanding Nebraska bankruptcy law is important to successfully discharging your debt and moving on with your life. Debt is discharged by filing chapter 7, which involves forgiveness of most or all unsecured debts. This is debt that is not tied directly to property and usually includes credit cards, personal loans, medical bills, and payday loans.
In some instances, chapter 7 bankruptcy may include the sale of properties in order to repay some debts. However, Nebraska bankruptcy law includes exemptions that will prevent property sales in most cases. These properties cannot be sold and are fully protected to remain with the debtor. For instance, a homestead of up to $60,000.00 dollars for one family that is up 160 acres is exempt. The head of household keeps 85% of their wages, and 75% of their wages are kept by non-heads-of-household. Vehicles are included up to $2,400.00 if they are used to travel to a main trade or business. Personal property is also covered; personal property up to $2,500.00 is exempt. In addition, household possessions up to $1,500.00, $2,400.00 worth of trade tools, professional books, implements, and supplies are included. Professionally prescribed health aides are also 100% exempt.
If the filer has a regular income but has experienced an unexpected setback economically, they may wish to file for chapter 13 bankruptcy. This involves a repayment plan over 3 or 5 years so that the filer can catch up on late payments and stay current with others. Chapter 13 bankruptcy also helps to prevent foreclosure because it includes an automatic stay that keeps creditors from collection efforts. Since a foreclosure on a mortgage is a form of collection, this can be prevented for the duration of the chapter 13 case.
If you are considering using the Nebraska bankruptcy law in order to discharge your debt, talk to a professional and get the process started today.