Written by the Upsolve Team.
Updated October 1, 2020
Cornhuskers are hardworking people. Unfortunately, hard work doesn’t always mean financial security. Too often, responsible, dedicated people fall on hard times through no fault of their own. When your debts and expenses become unmanageable, it may be time to explore the benefits of filing a Nebraska bankruptcy. The two primary forms of bankruptcy for individuals areChapter 13 bankruptcy andChapter 7 bankruptcy. The Chapter 13 bankruptcy process reorganizes debt to make monthly payments manageable, while the Chapter 7 processerases most debts outright. As Chapter 7 eliminates debt, the government tries to make sure that only low-income households are eligible for its benefits. Otherwise, high income households could escape debts they are capable of paying. The Court imposesincome limits as part of the Chapter 7 bankruptcy process. To qualify, households must pass a Chapter 7 Means Test. The more people who live in your household, the higher the maximum amount you can make without getting disqualified from filing for Chapter 7 bankruptcy.
Nebraska Median Income Levels
Nebraska Median Income Standards for Means Test for Cases Filed On or After May 1, 2020
|Household Size||Monthly Income||Annual Income|
Discharge in Bankruptcy for Nebraska
The most significant benefit of filing for Chapter 7 bankruptcy is earning a Nebraska bankruptcy discharge. “Bankruptcy discharge” is the term used to describe the elimination of eligible debts. In addition to this benefit, lower-income filers are generally allowed to keep most or all of their property. Higher-income filers may be required to sell certain assets, but most Chapter 7 Nebraska bankruptcy filers are able to keep most or all of their personal possessions because they are protected by exemptions. This process therefore truly helps to place Cornhuskers back on the road to financial wellbeing. Erasing debt while maintaining ownership of your property can allow you to successfully rebound from hitting financial rock bottom.
Nebraska Means Test Calculator
To determine whether you are eligible to file for Chapter 7 bankruptcy, you can consult a Nebraska Means Test calculator. Not all online Means Test calculators are up-to-date, however. You need to consult a current calculator to benefit from its results. Upsolve maintains a currentNebraska Means Test calculator that you can trust. Upsolve is a nonprofit that provides legal aid to families like yours. If your Chapter 7 Means Test results disqualify you from filing for Chapter 7 bankruptcy specifically, don’t lose hope. Any state that can boast the invention of Kool-Aid is home to creative thinkers. Even if you fail the Means Test, you may still have other debt relief options available to you, you may simply need to look outside the box. Anexperienced attorney may be able to help you figure out if you missed any important deductions and provide some legal guidance.
What Happens if I Fail the Means Test for Nebraska?
The Nebraska Tourism Commission made headlines when it adopted the slogan: “Nebraska: Honestly, It’s Not for Everyone.” The Commission was not trying to deter tourists, only to explain that Nebraska has an appeal for “enlightened truth-seekers” specifically. Like Nebraska itself, Chapter 7 bankruptcy is not for everyone. Your Chapter 7 Means Test results will give you a strong indicator if this debt management tool is a good fit for you. If you fail the Means Test, don’t panic, and remember that the main reason for failing the bankruptcy means test in Nebraska is making too much money. All this means is that an alternative debt relief option, like aChapter 13 bankruptcy, may be a better fit for your situation.Nebraska bankruptcy law can be complex, so if you have questions, don't hesitate to speak up. If you are not able to file for bankruptcy on your own because your situation is complex, anexperienced attorney can help you to find a solution that meets your needs. Speaking with an attorney will help to make sure that your questions are answered so that you can make informed decisions about your debt management needs.