Nebraska debt: four years or five, and a 15% cap for heads of family
Nebraska gives creditors five years on written contracts and four on oral agreements and open accounts, and most medical bills count as oral. If you support a family, a judgment can take only 15% of your pay instead of 25%.
Free check first. If a dispute letter makes sense, it costs $29 ($19 for military, veterans, seniors and people with disabilities) with three follow-ups.
Who is asking you to pay?
Look at the company name at the top of the letter or in the caller ID.
Nebraska at a glance
- Written contracts
- 5 years (25-205)
- Oral, open accounts
- 4 years (25-206)
- Medical bills
- Usually 4 years
- Restarting the clock
- Any voluntary payment
- Wage garnishment
- 25%, or 15% for head of family
- Agency license
- Collection Agency Licensing Board
General information about Nebraska law, with sources below. Not legal advice.
Four years or five in Nebraska
Five years on any agreement, contract or promise in writing (Neb. Rev. Stat. 25-205) and four years on an oral contract or open account (25-206). Sources differ on credit cards: some treat card agreements as written contracts with five years, others as open accounts with four unless a signed agreement governs. Most medical debts fall under the four-year oral contract period.
A voluntary payment of any amount resets the clock, so the time is usually measured from the last payment.
Garnishment and the head-of-family rule
Garnishment cannot exceed the lesser of 25% of disposable weekly earnings or the amount above 30 times the federal minimum wage (Neb. Rev. Stat. 25-1558). If you are the head of a family, the limit drops to 15% of disposable earnings. Claim it: tell the court and your employer if you support a family.
Already facing a garnishment in Nebraska? Our wage garnishment guide covers exemption claims, hardship and how long a garnishment lasts.
Whether a payment would restart the 4-year limit is covered, state by state, in our page on time-barred debt.
Limits vary a lot between states: by comparison, North Dakota sets 6 years and Virginia sets 3 years for similar debts.
To make a collector prove a debt in Nebraska, send a debt validation letter within the dispute window.
If your debt is a medical bill, read what unpaid medical bills can lead to; our page on medical debt and credit reports explains the one-year and $500 rules, which apply in Nebraska too.
Before a Nebraska medical bill reaches court, ask for an itemized bill and apply for financial assistance; see negotiating a hospital bill and your options if you cannot pay medical bills.
Most debt lawsuits end in default because people do not respond; our page on what to do if a debt collector sues you explains how to avoid that in Nebraska.
Licensed collection agencies
Collection agencies must be licensed under the Collection Agency Act (Neb. Rev. Stat. 45-601 and following) by the Collection Agency Licensing Board, administered by the Secretary of State. A written dispute inside the validation period makes a collector stop until it mails verification.
If your letter comes from a national company such as Velocity Investments or Walden Pierce Group, our collector guides explain who they are and how to dispute.
Questions people ask about debt in Nebraska
What is the statute of limitations on credit card debt in Nebraska?
Five years if treated as a written contract (Neb. Rev. Stat. 25-205), four if treated as an open account (25-206). Sources differ.
How long can a medical bill be collected in Nebraska?
Most medical debts fall under the four-year oral contract period.
Does a payment restart the clock in Nebraska?
Yes. A voluntary payment of any amount resets it.
How much of my wages can be garnished in Nebraska?
The lesser of 25% of disposable earnings or the amount above 30 times the federal minimum wage, or 15% if you are the head of a family.
Do collection agencies need a license in Nebraska?
Yes, from the Collection Agency Licensing Board under the Collection Agency Act.