Debt relief in Nebraska: collection rules, time limits and your options
Updated November 9, 2026
Nebraska at a glance (checked November 2026)
| Nebraska | |
|---|---|
| Time limit to sue on credit cards | Usually 4 years |
| Signed written contracts | 5 years |
| Wage garnishment for consumer debt | Up to 15% of take-home pay if you're the head of a family; up to 25% otherwise |
| State debt collection law | Collection Agency Act |
| Who licenses debt collectors | Nebraska Collection Agency Licensing Board |
| Where to complain | Nebraska Attorney General's Consumer Protection Division, and the CFPB |
Debt collection rules in Nebraska
Collection agencies need a license from the Nebraska Collection Agency Licensing Board, which the Secretary of State chairs (Collection Agency Act, Neb. Rev. Stat. 45-601 and following). Licensing runs through NMLS, so you can check a collector on NMLS Consumer Access.
The federal Fair Debt Collection Practices Act sets most of the rules for how collectors behave. A third-party collector can't call before 8 a.m. or after 9 p.m., threaten arrest or a lawsuit it doesn't plan to file, or misstate what you owe. It must send you a validation notice, and if you dispute the debt in writing within 30 days, it has to stop until it verifies the debt.
The Attorney General's Consumer Protection Division takes complaints about collectors and can try to settle a dispute through mediation.
How long creditors have to sue
- 4 years for open accounts and agreements that aren't in writing (Neb. Rev. Stat. 25-206). Credit card debt is often treated this way.
- 5 years for written contracts (25-205), which can apply if the lender shows a written agreement you signed.
The clock usually starts when you default. Any payment, even a small one, can restart it, so check how old a debt is before paying on it. Once the time limit has run, a collector can still ask you to pay but can't sue you or threaten to.
What can be garnished in Nebraska
If you're the head of a family, a creditor with a judgment can take at most 15% of your take-home pay (Neb. Rev. Stat. 25-1558). That means you support someone related to you by blood, marriage, adoption or guardianship. For everyone else, the limit is the lesser of 25% of take-home pay or the amount you earn above $217.50 a week, which is 30 times the federal minimum wage.
Check that the garnishment papers list you as head of a family if you are one, and ask the court for a hearing if they don't. Child support and taxes follow separate rules. Social Security and other federal benefits stay protected from ordinary creditors, even after they're deposited in your bank account.
Ways out of debt in Nebraska
- Nonprofit credit counseling can roll your cards into one debt management plan, usually at lower rates. Look for an agency accredited by the NFCC or FCAA.
- Would one loan cost less? Our debt consolidation calculator compares a single loan with what you're paying on your cards now.
- Debt settlement companies can't charge you a fee until they've actually settled a debt, under federal rules. Forgiven amounts can count as taxable income.
- Bankruptcy: Nebraska makes you use its own exemption list rather than the federal one, including a homestead exemption for the home you live in. A bankruptcy attorney can tell you what you would keep.
Where to get help or complain
- Nebraska Attorney General, consumer complaints takes complaints and offers mediation, or call 402-471-2682 or 800-727-6432.
- Nebraska Secretary of State, collection agencies handles collection agency licenses.
- Consumer Financial Protection Bureau takes complaints about collectors and lenders nationwide.
- Legal Aid of Nebraska gives free civil legal help, including with debt collection; call 1-877-250-2016.
General information about Nebraska law, not legal advice. Checked November 2026.