Federal and state laws impose limitations on garnishment of wages after a civil judgment. Certain types of income are exempt and cannot be garnished to pay a debt. In Nebraska, unemployment payments are considered public benefits and therefore are exempt from garnishment.
Garnishment: Defined
Garnishment of wages is a legal process that allows a creditor to recover unpaid debt from the debtor's employer. The third-party employer is the garnishee and is issued a court order to turn over a certain amount of wages directly to the creditor until the debt is satisfied.
Nebraska: Garnishment Exemptions Include Unemployment Benefits
In Nebraska, certain non-wage, non-salary income is protected from garnishment. These types of income include unemployment benefits, as well as other types of public benefits, such as worker's compensation and Aid to Families with Dependent Children. In Nebraska, like other states, other categories of income are also exempt from garnishment, including pensions and retirement benefits, insurance and annuities and fraternal society benefits up to $100,000. Compared to other states, Nebraska has fewer protections for public assistance-related or insurance-related income.
Nebraska Maximum Threshold
In Nebraska, limits apply on the amount a creditor may garnishee from a debtor's income. Nebraska law takes the lesser of two calculations and sets it as the threshold. The first calculation is 25 percent of the debtor's disposable income (or, if the debtor is the head of a household, 15 percent). The second calculation is the amount, if any, over which the debtor's weekly income exceeds 30 times the minimum wage. Certain types of debts, including child support arrears and tax bills, have separate rules that allow for a higher ceiling.
Nebraska Time Limit
Time limits exist in Nebraska within which a creditor can pursue garnishment. To obtain a judgment, a creditor must commence an action within four years for credit accounts and oral contracts and within five years for written contracts or those involving promissory notes. Then, after a judgment that states the debt is owed, the creditor has another five years or more to seek garnishment or other means of enforcing payment.
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