Exempt Property in Nebraska Bankruptcy Cases

ASSET
EXEMPTION DESCRIPTION
LAW
IMPORTANT CASES & NOTES

Homestead
$60,000 of home equity. No more than 2 lots in City or Village, 160 acres farmland. Sales proceeds protected for 6 months.
§40-101, 40-111, 40-113
Must reside in the home on the date the bankruptcy is filed to claim exemption.

Life Insurance & Annuity Contracts
Life insurance or annuity contract proceeds to $100,000
§44-371
Exemption only applies to cash values accrued more than 3 years prior to filing bankruptcy.

Fraternal benefit society benefits of up to $100,000
44-1089

Retirement/Pension
Stock, Pension, or Similar Plan or Contract.
§25-1563.01
Limited to an amount “reasonably necessary” for the support of the debtor.

Tax Exempt Retirement Accounts
11 U.S.C. §522
In re Euse (2011) Nebraska debtors qualify for the federal exemption of tax deferred retirement accounts in addition to §25-1563.01.

County Employees
§23-2322

Military Disability Benefits to $2,000
§25-1559

School Employees
§79-1060, 79-1552

State Employees
§84-1324

State Patrolmen
§60-459, §81-2031

Legislators
§24-710.02

Judges
§50-916

Burial Plot

§12-517

Crypts, lots, tombs, niches & vaults

§12-605

Perpetual Care Funds

§12-511

Clothing

§25-1556

Food & Fuel to last 6 months

§25-1556

Household Goods & Furniture
$1,500 per debtor
§1556

Public Benefits
Aid to Disabled, Blind, Aged and Aid to Dependent Children
§68-1013

Workers Compensation Benefits
§48-149

Unemployment Compensation
§48-647

Social Security Benefits
11 U.S.C. §407

Tools of the Trade
$2,400 per debtor for tools used in trade and vehicle used in business or used to drive to and from place of employment.
§25-1556
This exemption is commonly combined with the “Wildcard” exemption of §25-1552 to protect up to $4,900 of equity in vehicle.Must be employed to utilize the exemption.Temporarily unemployed debtor seeking work eligible for exemption. In re Quintero.

Wages
85% of wages or pension payment for Head of Household or 75% for all others.
§25-1558

Personal Property
Wildcard Exemption. Protects up to $2,500 per debtor of any personal property, including vehicles, bank accounts, etc.
§25-1552
This exemption is commonly combined with the “Tool of the Trade” exemption of §25-1556 to protect up to $4,900 of equity in vehicle.Protects cash, bank account deposits, tax refunds and any other personal property.
 
Exemption may be used to take back garnishments incurred within 90 days of bankruptcy that exceed $600.

Tax Refunds
The Earned Income Credit (“EIC”) on Federal and State income tax returns.
§25-1556

College Savings Accounts
Education IRA Accounts§529 College Savings Plans
11.U.S.C. §541(b)(5) & (6)
Protects funds deposited into a qualified college savings account more than one year prior to bankruptcy.