A 2023 study showed that fewer people file for bankruptcy in Nebraska compared to the national average.

This might mean they are unsure about Nebraska bankruptcy law or have some misconceptions about it.

If you live in Nebraska and are struggling financially, bankruptcy might be an option to consider. It’s a way to get a fresh start by wiping out most of your debts.

This blog post will walk you through five important questions to ask yourself before filing for bankruptcy in Nebraska.

Will bankruptcy solve my problems?

Bankruptcy is a powerful tool for dealing with excessive debt, but it’s not a guaranteed solution to all your financial problems. It is also not a guarantee that you won’t fall back into debt again.

Bankruptcy doesn’t address the root causes of your debt problem. If you don’t address issues like overspending or a lack of budgeting, you could find yourself back in debt after bankruptcy.

Also, not all debts are dischargeable in bankruptcy. For example, child support, alimony, student loans with some exceptions, and certain tax debts will typically survive a bankruptcy filing.

Which type of bankruptcy is better for me?

Nebraska bankruptcy law recognizes two main types of consumer bankruptcy: Chapter 7 and Chapter 13. 

Chapter 7 is often referred to as “liquidation” bankruptcy. In a Chapter 7 case, most of your eligible debts are discharged, meaning you are no longer legally obligated to repay them. However, to qualify for Chapter 7 in Nebraska, you should pass a test. 

This test helps you check your income against the median income for your household size in Nebraska. If your income falls below the median, you will likely qualify for Chapter 7. 

Chapter 13 is termed “repayment” bankruptcy. In a Chapter 13 case, you create a court-approved repayment plan that lasts between 3 and 5 years. 

During this period, you make monthly payments to a court-appointed trustee, who then issues the funds to your creditors.  

At the end of the plan, any remaining eligible debt is discharged. There is no income test for Chapter 13, so anyone can file regardless of their income level.

What are the consequences of filing for bankruptcy?

Filing for bankruptcy can hurt your credit score for a while. A Chapter 7 bankruptcy can stick around for 10 years, while a Chapter 13 bankruptcy might stay on your report for 7 years. This can impact your capacity to secure loans, credit cards, or even rent an apartment in the future. 

The law says employers can’t discriminate against you just because you filed for bankruptcy. However, some employers do check credit scores when hiring. So, a bankruptcy filing might raise a red flag for some potential employers, even though it shouldn’t.

Furthermore, some professional licenses or certifications might require a good credit history. Filing for bankruptcy could make it a little trickier to get or renew these licenses.

How much does it cost to file for bankruptcy?

Filing for bankruptcy isn’t free. There are court fees associated with both Chapter 7 and Chapter 13 cases. In Nebraska, the current filing fee for a Chapter 7 bankruptcy is $335, while the fee for a Chapter 13 case is $310 (not including attorney fees).  

In addition to court fees, you’ll likely need to pay attorney’s fees. The cost of legal representation can differ depending on the complexity of your case and the experience of the attorney.

If you choose Chapter 13, you’ll also be responsible for making monthly payments to the court-appointed trustee who issues the funds to your creditors. The amount you’ll pay will depend on your income, expenses, and the total amount of your debt.

Are there other options for bankruptcy that I have yet to consider?

Before you decide to file for bankruptcy, you must first explore all your options. Here are some alternatives to consider:

Debt negotiation

Many creditors are willing to work with you to lower your interest rates or create a more manageable repayment plan. It is important to reach out to your creditors directly to discuss your situation.

Credit counseling

A credit counseling agency can provide financial education and help you create a budget and debt management plan. Many non-profit credit counseling agencies offer free or low-cost services.

Debt consolidation loan

This includes combining multiple debts into a single loan with a lower interest rate. This can simplify your repayment process and potentially save you money on interest charges.


Bankruptcy is not without its pros and cons. In some situations, it may be the only way out for you. And sometimes, you’re better off with other options.

What you should do is discuss this with a bankruptcy attorney. They can fully assess your situation and help you make the most suitable decision.