Bankruptcy exemptions increased

Senators passed a bill Feb. 8 that expands bankruptcy exemption provisions that were last modified 20 years ago.

<a href='http://news.legislature.ne.gov/dist16' target='_blank' title='Link to the website of Sen. Lydia Brasch'>Sen. Lydia Brasch</a>
Sen. Lydia Brasch

LB105, introduced by Bancroft Sen. Lydia Brasch, increases the personal property exemption from $2,500 to $5,000 when filing for bankruptcy or resolving a creditor judgment.

The bill additionally increases an exemption for household items from $1,500 to $3,000 and an exemption for business tools and equipment from $2,400 to $5,000. The bill also provides an exemption for a debtor’s interest in a motor vehicle for up to $5,000.

The exemption limits will be adjusted for inflation every five years, beginning in 2023.

The bill passed on a 47-0 vote.

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