Welcome to DebtConsolidationCare’s trusted resource for debt relief in Nebraska. Are you overwhelmed with debt from credit cards, payday loans, medical bills, student loans or other unsecured debts in Nebraska? You’re not alone. Whether you live in Omaha, Lincoln, Bellevue or anywhere in the Cornhusker State, we can help you achieve lasting financial stability.

Our mission is to help you understand the Nebraska debt relief programs available to you, including nonprofit credit counseling, debt management plans (DMPs), debt consolidation loans and debt settlement options. Knowing these options will empower you to make decisions based on your situation.

Get started with a free, no-obligation review of your debts, income and monthly expenses. We’ll show you how nonprofit credit counseling agencies can help you through a DMP at little to no cost—or how debt settlement and debt consolidation options can reduce your balances and interest rates and get you on the path to financial freedom.

What Sets Our Debt Relief Programs Apart?

With over 20 years of experience, DebtConsolidationCare offers:

Personalized Guidance: You’ll work one-on-one with a dedicated account specialist who will review your situation and recommend the best debt relief strategy for you.

Transparency: We provide clear, straightforward information about the timeline, risks and results of your debt relief options.

Ongoing Support: We’ll be with you every step of the way and connect you with other resources in Nebraska’s debt management community.

When you work with DebtConsolidationCare, we follow strict compliance standards so you only pay after you see actual reductions in your debt—fully compliant with the federal Telemarketing Sales Rule and Nebraska’s statute of limitations on debt.

Debt Relief Solutions Available in Nebraska

If you’re a Nebraska resident facing financial difficulties, you have several debt relief options designed to help you regain control of your finances.

Below are the most common debt relief Nebraska solutions—consider which one best fits your unique situation:

1. Debt Management Plans (DMP)

Debt Management Plans are often one of the most effective credit management solutions for Nebraskans. Offered by nonprofit credit counseling agencies, DMPs involve negotiating with your creditors on your behalf to potentially lower interest rates and consolidate multiple debts into a single, manageable monthly payment.

How it works:

• A credit advisor in Omaha, Lincoln or elsewhere in Nebraska will review your debts, income and expenses.
• They create a personalized, affordable payment plan and negotiate with creditors to reduce interest rates or waive fees.
• You then make one monthly payment to the credit counseling agency, which distributes the funds to your creditors.

The key advantage of a DMP is that it provides a structured and transparent way to repay debts while avoiding bankruptcy. Keep in mind, however, that DMPs generally do not reduce the principal balance of your debt—they primarily lower interest and fees.

2. Debt Consolidation Loans

A debt consolidation loan is a low-interest loan to pay off high-interest debts. This is a good option for Nebraskans with a lot of debt as it combines multiple payments into one and may lower your overall interest rate.

To qualify, you usually need good credit and enough income to make the consolidated loan payments. While this can save you interest and pay off debt faster, missing payments can put the entire loan and potentially your assets at risk. Be sure to evaluate your financial situation before pursuing this option.

3. Debt Settlement

Debt settlement is negotiating with your creditors to pay off your debt for less than the full amount owed—usually 40% to 60% of the total. This is good if you can’t pay off your debts in full.

Debt settlement is good for unsecured debts like credit cards, medical bills or payday loans in Nebraska. But it has risks: a big hit to your credit score. And settlements often require lump sum payments and late or missed payments during the process can further harm your credit.

4. Bankruptcy (Chapter 7 & Chapter 13)

For some Nebraska residents, bankruptcy is the way to go to get back on track.

There are two types:

• Chapter 7 Bankruptcy: Liquidates (sells) non-exempt assets to pay creditors. Good for low income and limited assets. Takes a few months and discharges most unsecured debts.
• Chapter 13 Bankruptcy: Allows you to keep your assets and pay debts over 3 to 5 years through a court approved payment plan. Good for those with a steady income who need help reorganizing their debt.

While bankruptcy gives you a fresh start, it has long term consequences including a big hit to your credit score and future borrowing ability. Nebraska residents should think carefully about this and consult a financial professional before they do.

Bankruptcy Exemptions: Protecting Your Property in Nebraska

Filing for bankruptcy doesn’t mean you’ll lose everything. Nebraska bankruptcy exemptions are designed to help you protect specific assets from being sold to pay creditors. Here’s an overview of key exemptions available under Nebraska law:

• Homestead Exemption: Protect up to $60,000 in equity for your primary residence ($120,000 if married and filing jointly), provided the property is located in Nebraska.
• Personal Property Exemptions:
  • Motor vehicle: up to $2,400 in equity
  • Household goods and furnishings: up to $5,000 (total)
  • Clothing: up to $500
  • Books and tools: up to $500
• Wages: Generally, 75% of your earned wages are exempt from garnishment, helping ensure you still retain the majority of your income while working.
• Retirement Accounts: Most retirement accounts—such as 401(k)s, IRAs and pension funds—are fully exempt, subject to federal or state limits.
• Wildcard Exemption: If the above exemptions don’t cover all your assets, Nebraska’s wildcard exemption allows you to protect up to $1,200 in value of any property of your choice.
• Insurance Benefits: Life insurance policies with a designated beneficiary are generally exempt from bankruptcy proceedings.
• Tools of the Trade: Up to $1,500 in tools and equipment necessary for your trade or business can be protected.

These exemptions can significantly reduce the financial impact of filing for bankruptcy in Nebraska. However, exemption rules are subject to change and may depend on your specific situation. Always consult a qualified bankruptcy attorney to understand how these exemptions may apply to your case and to ensure you protect as much of your property as possible.

How Our Nebraska Debt Relief Programs Work

At DebtConsolidationCare, we help Nebraska residents get out of debt. Here’s how our Nebraska debt relief programs work:

1. Comprehensive Review: Our experts start by looking at your income, total debts, monthly expenses and credit score. We then create a personalized payment plan based on your situation.
2. Secure Escrow Account: Your payments go into a secure escrow account. Funds are only released to creditors after you approve a settlement or payment offer.
3. Expert Negotiation: We negotiate with creditors to get you the best deal, while following Nebraska’s statute of limitations and state debt laws.
4. Flexible Timeline: choose the solution that’s right for you. Debt settlement takes 24-48 months, while bankruptcy can be as short as 4-6 months for Chapter 7 or 3-5 years for Chapter 13 repayment plans.
5. Ongoing Support: We’re with you every step of the way, so you stay on track and have access to additional Nebraska debt resources as needed.

Pros & Cons of Nebraska Debt Relief Options

This approach ensures you fully understand each debt relief option so you can choose the Nebraska debt solution that’s best for you.

Average Debt in Nebraska

Understanding how your debt compares to that of others in your area can help assess your financial outlook.

Here are the average levels of common unsecured debts in major Nebraska cities:

Being aware of these averages can help you put your own debt situation into perspective and make more informed decisions when exploring debt relief programs in Nebraska.

Debt Relief Nebraska Resources

In addition to professional Nebraska debt relief programs, there are local resources to help you improve your financial well being:

• Nebraska Workforce Development: Job placement, training programs and employment services to get you a steady income and off credit.
• Medicaid: Health care coverage to reduce or eliminate medical debt for qualifying Nebraska residents.
• Nebraska Food Assistance (SNAP): Reduces your monthly grocery bill so you have more money for debt repayment and necessities.

Use these resources in conjunction with your debt relief strategies to get to a more stable financial future.

Nebraska Financial Laws

Know your rights under Nebraska’s financial laws when dealing with debt collection. Here’s a breakdown of the key laws for Nebraska residents:

Statute of Limitations for Debt in Nebraska

The statute of limitations is the time frame creditors have to sue you for unpaid debt. Once that time is up, creditors can no longer sue you, but they can still collect.

• Written Contracts: 5 years
• Oral Agreements/On Account: 4 years
• Judgments: 20 years

Knowing these time frames will protect you from being sued on old debt outside the statute of limitations.

Fair Debt Collection Practices Act (FDCPA)

The FDCPA is a federal law that prohibits third party debt collectors from using abusive, deceptive or unfair methods to collect debts. As a Nebraska resident you are protected under the FDCPA so debt collectors must treat you fairly during the collection process.

Nebraska Consumer Protection Act

Nebraska’s Consumer Protection Act offers additional protections against deceptive or unethical debt collection practices. It works along with the state’s statute of limitations laws to prevent debt collectors from pursuing expired or “stale” claims.

Debt Relief Nebraska FAQs