Every state has homestead protection laws that help prevent struggling homeowners from losing their primary residence when seeking bankruptcy protection. These laws allow individuals to declare a portion of their property (usually limited by acreage and property value) a "homestead" and thus off limits to creditors. The federal government also provides homestead protections, but you must compare federal protections to those offered by your state since you cannot claim both. As long as the exemption is for your primary residence, it prevents forced sales to satisfy debts. Most states allow for a much greater exemption (by acreage) of rural properties, since many of them are used for agricultural purposes.
Nebraska Homestead Protection Laws at a Glance
The state of Nebraska allows a maximum property value of $60,000 (as of 2015) to be declared a homestead, with a maximum urban acreage of one acre (covering as many as two lots) and a rural limit of 160 acres. See the Nebraska Homestead Exemption section of the state's official Website to learn more and download official forms.
See FindLaw's Bankruptcy section for related articles.
|Code Section||77-3502 (taxation); 40-101 (judgments)|
|Max. Property Value That May Be Designated 'Homestead'||$60,000|
|Maximum Acreage (Urban)||1 acre; 2 lots|
|Maximum Acreage (Rural)||160 acres|
Note: State laws are always subject to change at any time through the enactment of newly signed legislation or ballot initiatives, decisions from higher courts, and other means. You may want to contact a Nebraska bankruptcy attorney or conduct your own legal research to verify the state law(s) you are researching.
A Brief Summary of Federal Homestead Exemptions
Nebraska imposes a $60,000 limit on homestead exemptions, which is much more than the federal exemption amount of $22,975 (current as of 2015). Additionally, the federal exemption may be applied to burial plots and mobile homes as well as homes. Married couples may double this exemption to $45,950. But even though Nebraska does not allow a doubling of this amount for married couples, it still allows a higher limit than the federal government.
Research the Law
Nebraska Homestead Laws: Related Resources
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