Nebraska law establishes a variety of procedures used by a creditor to collect money owed to her. They include liens on real and personal property as well as garnishments. Whether you are positioned as a creditor or a debtor, or you are the plaintiff or defendant in a collection case in the "Cornhusker State," familiarize yourself with the basic elements of Nebraska's garnishment law and procedure.
Nebraska's garnishment law permits a creditor, including a judgment creditor, the ability to seize the property of a debtor to satisfy a debt or judgment. A garnishment order directs a third party such as a bank or an employer to withhold money on behalf of the creditor. The entity withholding money pays it to the court clerk for the ultimate benefit of the creditor.
Different types of garnishments are permissible under Nebraska law. The most commonly utilized variations include bank and wage garnishments. Both of these garnishments require a specific order from the court directing that either the bank or an employer withhold a certain amount of a debtor's money on deposit or wages.
The benefits of the garnishment process in Nebraska rests in the fact that it provides a creditor an effective tool to satisfy a debt or judgment when the debtor or defendant refuses to resolve the obligation on a voluntary basis.
A debtor in Nebraska who files for bankruptcy benefits from what is known as an order of automatic stay. According to the U.S. Bankruptcy Code, an order of automatic stay requires a creditor to stop all collection activity immediately until further order of the bankruptcy court. Pursuant to Nebraska garnishment law, the garnishment terminates upon the debtor's filing of a bankruptcy
Whether you are a creditor or a debtor, to ensure your rights and interests are protected throughout a garnishment process, consider engaging the services of an experienced collection lawyer. The Nebraska State Bar Association maintains a directory of attorneys in different practice areas, including collection law.
Nebraska State Bar Association 635 S. 14th St., Suite 200 Lincoln, NE 68508 402-475-7091 nebar.com