Nebraska Debt Relief
In Nebraska, the Credit Card Debt law allows creditors 4 years to sue over outstanding open-ended debt. This time limit, called the Statute of Limitations (SOL), starts running from the date the debtor first misses a scheduled payment. If the debtor makes any subsequent partial payments, the SOL resets from that date. Debtors who receive a summons must respond within 30 days to avoid default judgment, unless otherwise noted on the summons. Answers should be sent by certified mail to ensure timely delivery.
Nebraska law allows 20 years for the debtor to collect a judgment, so long as it is executed within five years. Judgments accrue interest at 1% above the US government bond rate. The law allows another 10 years for the judgment to be revived. The judgment serves as a lien against any real property owned by the debtor. Both real and personal property can be levied, with the exception of exempt wages and property. Homestead exemptions are allowed up to $12,500 and personal property up to $2,500. The creditor may garnish wages up to 25% for individuals, but only 15% for the head of household.
“Judgment by confession,” a clause in contracts that serves as automatic judgment against the Defendant, is allowed Nebraska. For this reason, Nebraska residents should be careful when signing credit contracts.
Debt lawsuits are painful proceedings, but they can be avoided. Consumers may work out an interest free payment plan with creditors through Debt Settlement instead. This lets consumers have more say in payment plans, rather than relying on court judgments. It may also help them avoid bankruptcy.