Nebraska Bankruptcy laws

These laws differ in each state and Nebraska has guidelines for filing a Chapter 7 and Chapter 13 bankruptcy. The Nebraska bankruptcy laws are means tested and this will either put you in Chapter 7 or Chapter 13.Under the state’s 2005 laws all income and expenditure will be analysed to determine how you can file.

The Nebraska bankruptcy laws are straight forward and you can determine yourself which category you may fall into. A court will determine your average monthly income over a 6 month period prior to you filing and will them compare this to an average income for the state. If your income is below the average you can file under Chapter 7. If your income is over the average, a further means test is applied to determine if you can file under Chapter 7 or Chapter 13.

Under Nebraska bankruptcy laws, if you are not able to pay back a sum of $6,000.00 or $100.00 a month for the next 5 years to unsecured creditors such as credit cards or medical costs, you can file bankruptcy under Chapter 7. If you are in a financial position to pay $10,000.00 in the 5 year period you are unable to file under Chapter 7. If you are in a position to pay an amount greater than $6,000.00 but less than $10,000.00, the court will determine if you able to file under Chapter 7. If you are in the financial position to repay 25% of your unsecured debts, then it is likely that a Chapter 7 filing would be denied.

If you file for Chapter 13 under Nebraska bankruptcy laws, you will have to submit your repayment of debt plan when you file for bankruptcy. Any disposable income will have to be included in the plan for a period of at least 3 years.

Several items can be exempt from your bankruptcy filing under Nebraska bankruptcy laws. Exemptions can apply to equity in your house up to $60,000.00 for married debtor or over 65 years old, fraternal benefit and life insurances, personal property including burial plot, clothing, food and fuel for 6 months, furniture and kitchen utensils to $1,500.00 and tools for work up to $1,500.00.