Bankruptcy exemptions increased

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

Sen. Lydia Brasch
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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