Nebraska Debt Collection Laws

Kent A. Schroeder

Submitted by Kent A. Schroeder, Partner, Ross, Schroeder & George, LLC

Published by The National List of Attorneys


Kent A. Schroeder, a partner at Ross, Schroeder & George, LLC, in Kearney, Nebraska, has practiced law in Nebraska for over 40 years. He received his Bachelor’s Degree at Iowa State University and his Juris Doctor from the University of Nebraska College of Law. Mr. Schroeder’s caseload is diverse but his primary area of practice is domestic litigation. He also serves on the Board of Regents for the University of Nebraska.


1.  Foundational Debt Collection Laws

a.  Statute of Limitations:

An action for open accounts, written contracts and foreign judgments must be brought within five years. See Neb. Rev. Stat. § 25-205(1)

b.  Bad check laws and civil penalties:

If the bad check is for an amount greater than $500, the person who passed the check may be charged with a felony. If the amount is less than $500, the person can be charged with a misdemeanor. The aggregate amount of any series of checks passed in the same county within sixty days may be used in determining the classification of the offense. See Neb. Rev. Stat. § 28-611. In a civil action to recover on a bad check, the applicant may recover damages resulting from the breach, including incidental but not consequential damages. See Neb. Rev. Stat. U.C.C. § 5-111(b).

c. General garnishment exemptions

Wages subject to garnishment under Neb. Rev. Stat. § 25-1558 are not to exceed the lesser of the following: (1) twenty-five percent of the defendants disposable income for that week; (2) the amount by which the defendants disposable earnings for that week exceed thirty times the federal minimum wage; (3) fifteen percent of the defendants disposable income, if the individual is a head of a family.

The pension of every resident who became disabled in the service of the United States as a soldier, sailor or marine, and app property hereafter purchased and improved exclusively with such pension money, not exceeding two thousand dollars, is exempt from levy and sale upon execution or attachment. See Neb. Rev. Stat. § 25-1559.


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