Bankruptcy in Nebraska

If you think you really need to declare bankruptcy in Nebraska, but have been putting it off because you are worried about being stigmatized or ruining your credit, then you really have nothing to worry about. There are many different misconceptions about bankruptcy. First of all, there is hardly any stigma anymore for those who declare bankruptcy; people do it all the time whether they be doctors, lawyers, priests, or factory workers. Second, while declaring bankruptcy will hurt your credit, it only stays on your credit report for seven to 10 years. Yes, it is a long time, but it is not permanent.

Preparing for Bankruptcy

When you've finally decided to go through with bankruptcy in Nebraska, there are some things you'll need to do in order to prepare first. First of all, because of bankruptcy laws passed in 2005, you are required to seek six months of credit counseling before you may file for bankruptcy. So if you haven't done that yet, you should do so now. Second, you should see if you pass the means test. This is whether or not you make more than the median annual income for the state of Nebraska. If you make less than the median, you are eligible for Chapter 7 bankruptcy.

Filing for Chapter 7

Once you've determined that you may file for Chapter 7 bankruptcy in Nebraska, it's time to see an attorney and gather your paperwork. Paperwork consists of what you are making, your major assets, and a list of your expenses. If you have trouble gathering this information, your attorney will be able to assist you. Once you've gathered all the needed information, you and your attorney may file your official petition, your schedules, and your statements of financial affairs. These forms will be filled out by you or your lawyer using the information that you collected in your paperwork.

Exemptions in Nebraska

Next, you and your lawyer need to go over the different exemptions that you are eligible for when declaring bankruptcy in Nebraska. Property that is declared exempt is not subject to be taken by your creditors. Thankfully, most property can be considered exempt. In Nebraska, exemptions include: homestead to $12,500, personal property to $2,500, immediate personal possessions, household goods and furnishings, tools of your trade up to $2,400, all clothing, wages, and other income such as workman's compensation benefits, professionally prescribed health aids, and certain pensions.