Filing Chapter 7 Bankruptcy in Nebraska (2026)
Reviewed by DocDraft Legal Team · Nebraska · Last updated August 18, 2026
Chapter 7 bankruptcy is federal law, but the property you keep is set by Nebraska. Nebraska is an opt-out state: under Neb. Rev. Stat. 25-15,105 you must use Nebraska's exemptions and cannot choose the federal 11 U.S.C. 522(d) list. This page explains Nebraska's homestead exemption under Neb. Rev. Stat. 40-101, the personal-property wildcard that is available only in lieu of a homestead, the vehicle and wage protections, the means-test median income, and the single federal court where Nebraskans file. Chapter 7 discharges most unsecured debt but not most student loans, recent taxes, child support, or alimony.
Does Nebraska use state or federal bankruptcy exemptions?
Nebraska is an opt-out state. Under Neb. Rev. Stat. 25-15,105, Nebraska rejects the federal 11 U.S.C. 522(d) exemptions and requires debtors to use the exemptions in Nebraska's statutes and Constitution. When you file Chapter 7 in Nebraska you cannot pick the federal list; you protect property with Nebraska exemptions only.
Can I keep my house if I file Chapter 7 in Nebraska?
Often yes. Under Neb. Rev. Stat. 40-101, Nebraska's homestead exemption protects up to $120,000 of equity in the home where you live, on up to 160 acres outside a city or up to two contiguous lots inside a city or village. If your home equity fits within that amount, Chapter 7 generally lets you keep the house.
Can I keep my car if I file Chapter 7 in Nebraska?
Often yes if your equity is modest. Nebraska exempts up to $5,000 of equity in a vehicle used to commute to a principal place of work or business under Neb. Rev. Stat. 25-1556. If you claim no homestead, the separate personal-property wildcard under 25-1552 can also cover vehicle equity, protecting more of your car.
What is the income limit to file Chapter 7 in Nebraska?
For cases filed on or after July 15, 2026, the U.S. Trustee median income figures for Nebraska are $66,922 for one earner, $90,728 for two, $103,405 for three, and $125,074 for four, adding $11,100 per additional person. At or below your household figure, you pass the first part of the means test.
Nebraska's Opt-Out Rule, the 40-101 Homestead, and the In-Lieu-Of Wildcard
Nebraska is a bankruptcy opt-out state. Under Neb. Rev. Stat. 25-15,105, Nebraska rejects the federal 11 U.S.C. 522(d) exemptions and elects to keep the personal exemptions in its own statutes and Constitution, so a debtor filing here uses Nebraska exemptions only. The headline protection is the homestead exemption under Neb. Rev. Stat. 40-101: up to $120,000 of equity in the dwelling where the claimant resides, on up to 160 acres of rural land or, at the claimant's option, up to two contiguous lots inside an incorporated city or village. Nebraska's structure has an important quirk: the personal-property wildcard under Neb. Rev. Stat. 25-1552, which exempts a set dollar amount in personal property other than wages, is available only to a debtor who does not claim a homestead. Homeowners who use the 40-101 homestead therefore give up that wildcard. Nebraska also exempts a work vehicle up to $5,000 under 25-1556 and protects the greater of 85 percent of a head of family's disposable wages under 25-1558. All Nebraskans file in a single court: the U.S. Bankruptcy Court for the District of Nebraska, which sits in Omaha and Lincoln.
Relevant Laws
Nebraska Homestead Exemption (Neb. Rev. Stat. 40-101)
Sets Nebraska's homestead exemption at up to $120,000 of equity in the dwelling where the claimant resides, on up to 160 acres outside an incorporated city or village, or up to two contiguous lots inside a city or village. This is the exemption that lets many Nebraska homeowners keep their house in Chapter 7.
Nebraska Opt-Out From Federal Exemptions (Neb. Rev. Stat. 25-15,105)
Nebraska's opt-out statute. It rejects the federal exemptions in 11 U.S.C. 522(d) and elects to keep the personal exemptions in Nebraska's statutes and Constitution for any bankruptcy filed in the state, so debtors cannot choose the federal list.
Nebraska Personal-Property Wildcard (Neb. Rev. Stat. 25-1552)
Exempts a set dollar amount of personal property other than wages, available only to a debtor who does not claim a homestead. The statutory base is $5,000 and is adjusted periodically for inflation, making it the key exemption for renters and low-equity filers.
Federal Bankruptcy Code Exemptions and Means Test (11 U.S.C. 522, 707)
The federal law behind Chapter 7. Section 522(b)(2) lets a state opt out of the federal 522(d) exemptions, which Nebraska has done, and section 707(b) sets the means test measured against state median income.
Regional Variances
Nebraska Chapter 7 Exemption Table
Homestead
Neb. Rev. Stat. 40-101: up to $120,000 of equity in the dwelling where you reside, on up to 160 acres outside an incorporated city or village, or at your option up to two contiguous lots inside a city or village. Equity above the cap may be reachable by the trustee.
Motor vehicle
Neb. Rev. Stat. 25-1556: up to $5,000 of equity in a vehicle used to commute to or carry on your principal place of work or business. A debtor claiming no homestead can add the 25-1552 wildcard on top to protect additional vehicle equity.
Wildcard (in lieu of homestead)
Neb. Rev. Stat. 25-1552: a set amount of personal property other than wages, statutory base $5,000 and adjusted periodically for inflation, available ONLY to a debtor who does not claim a homestead. Homeowners who use the 40-101 homestead give up this wildcard.
Personal property
Nebraska exempts specific personal property by category, including household furniture, appliances, and clothing, plus tools, instruments, or equipment used in a trade or business, in addition to the 25-1552 wildcard when no homestead is claimed. Figures are set by the relevant Chapter 25 exemption statutes.
Wages
Neb. Rev. Stat. 25-1558: protects the greater of 85 percent of disposable earnings for the head of a family, or 75 percent for other debtors, or the amount below the federal minimum-wage floor. The 25-1552 personal-property wildcard by its terms does not apply to wages.
Retirement and tools
Retirement plans and accounts receive protection under Neb. Rev. Stat. 25-1563.01, and ERISA-qualified plans are separately excluded from the bankruptcy estate under federal law. Tools, instruments, or equipment used in a trade or business are exempt as a category of personal property under Nebraska's Chapter 25 exemption statutes.
Suggested Compliance Checklist
Confirm the current Nebraska means-test median income
Before you file days after startingCheck your household size against the U.S. Trustee Nebraska median income figures in effect on your filing date, since these update periodically. For cases filed on or after July 15, 2026 the figures are $66,922 for one, $90,728 for two, $103,405 for three, and $125,074 for four, adding $11,100 per additional person.
Complete the pre-filing credit counseling course
Within 180 days before filing days after startingTake an approved credit counseling course from a provider authorized for the District of Nebraska and keep the certificate. You must file it with your petition. Skipping this can get your case dismissed before your debts are addressed.
Decide between the homestead and the wildcard, and value your assets
Before preparing your schedules days after startingBecause the 25-1552 personal-property wildcard is available only in lieu of a 40-101 homestead, decide which path fits you and value your home, vehicle, and personal property so you can match assets to Nebraska exemptions. Homeowners with equity usually claim the homestead; renters usually take the wildcard.
Prepare and file your petition and schedules
Filing day days after startingFile your petition, schedules, and exemption claims in the U.S. Bankruptcy Court for the District of Nebraska, the single federal court covering the state. Filing triggers the automatic stay that pauses collection and garnishment. File where you have lived for most of the prior 180 days.
Attend the 341 meeting and finish the debtor education course
Before discharge days after startingAttend the 341 meeting of creditors and answer the trustee's questions under oath, then complete the required post-filing financial management course and file the certificate. Both are required before the court will grant your discharge. An attorney can help with contested exemptions.
| Task | Description | Document | Days after starting |
|---|---|---|---|
| Confirm the current Nebraska means-test median income | Check your household size against the U.S. Trustee Nebraska median income figures in effect on your filing date, since these update periodically. For cases filed on or after July 15, 2026 the figures are $66,922 for one, $90,728 for two, $103,405 for three, and $125,074 for four, adding $11,100 per additional person. | - | Before you file |
| Complete the pre-filing credit counseling course | Take an approved credit counseling course from a provider authorized for the District of Nebraska and keep the certificate. You must file it with your petition. Skipping this can get your case dismissed before your debts are addressed. | - | Within 180 days before filing |
| Decide between the homestead and the wildcard, and value your assets | Because the 25-1552 personal-property wildcard is available only in lieu of a 40-101 homestead, decide which path fits you and value your home, vehicle, and personal property so you can match assets to Nebraska exemptions. Homeowners with equity usually claim the homestead; renters usually take the wildcard. | - | Before preparing your schedules |
| Prepare and file your petition and schedules | File your petition, schedules, and exemption claims in the U.S. Bankruptcy Court for the District of Nebraska, the single federal court covering the state. Filing triggers the automatic stay that pauses collection and garnishment. File where you have lived for most of the prior 180 days. | - | Filing day |
| Attend the 341 meeting and finish the debtor education course | Attend the 341 meeting of creditors and answer the trustee's questions under oath, then complete the required post-filing financial management course and file the certificate. Both are required before the court will grant your discharge. An attorney can help with contested exemptions. | - | Before discharge |
Frequently Asked Questions
Under Neb. Rev. Stat. 40-101, Nebraska's homestead exemption protects up to $120,000 of equity in the home where you live, on up to 160 acres of land outside an incorporated city or village, or at your option up to two contiguous lots inside a city or village. If your equity fits within that amount, Chapter 7 generally lets you keep the house.
Under Neb. Rev. Stat. 25-1552, Nebraska exempts a set amount of personal property other than wages, but only for a debtor who does NOT claim a homestead. The statutory base is $5,000 and is adjusted periodically for inflation. Because it is available in lieu of a homestead, renters and low-equity filers benefit most from it.
You file in the U.S. Bankruptcy Court for the District of Nebraska, the single federal bankruptcy court covering the entire state, with divisional offices in Omaha and Lincoln. You generally file where you have lived for the greater part of the prior 180 days. Filing triggers the automatic stay against collection.
No. Chapter 7 discharges most unsecured debt like credit cards and medical bills, but it does not erase most student loans, recent income taxes, child support, or alimony, and it will not discharge debts from fraud. Secured debts like a car loan remain unless you surrender the collateral or reaffirm the loan.
Under Neb. Rev. Stat. 25-1558, Nebraska protects the greater of 85 percent of disposable earnings for the head of a family, or 75 percent for other debtors, or the federal minimum-wage floor. This wage protection is separate from the 25-1552 personal-property wildcard, which by its terms does not apply to wages.
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