The best business debt settlement companies in Nebraska will have a solid plan to settle your debt under Nebraska law. That means knowing that Nebraska provides a homestead exemption up to $120,000, very limited exemptions for personal property, and that most business loans (and their guarantors) are not subject to a usury cap. You want a provider that can settle the debt before a funder domesticates an out-of-state judgment in Douglas County or Lancaster County.
How Should I Compare Business Debt Settlement Companies in Nebraska?
When comparing business debt settlement companies in Nebraska, make sure the company knows the specific rules of Nebraska, which primarily means the exemptions Nebraska provides rather than confession of judgment or usury arguments. A provider using the same pitch it uses in New York or Arkansas is likely not well equipped to settle your debt.
Nebraska also does not screen companies that settle only business debt. The Nebraska Debt Management Act, run by the Secretary of State, defines a debtor as "a wage earner whose principal income is derived from wages, salary, or commission." Thus, a company that only handles business debt generally will not need to be licensed in Nebraska, and it is up to you to vet the provider's experience and fees. See our guide on how much business debt settlement costs.
How Much is the Homestead Exemption in Nebraska?
Nebraska allows for a homestead exemption of up to $120,000. If you signed a personal guarantee and live in your home, a judgment creditor cannot put a lien on it or force its sale up to that value. A homestead can be up to 160 acres outside a city or village or two contiguous lots inside one, but its value is still capped at $120,000. See Neb. Rev. Stat. 40-101; this value was set by LB 1195 in 2024.
This is different than Iowa, which caps the homestead by acreage rather than value. See our guide to business debt settlement in Iowa.
Nebraska has very limited exemptions for personal property. These base amounts are adjusted for inflation every five years.
| Nebraska Exemption | Base Value | Statute |
|---|
| Personal Property (other than wages) | $5,000 | Neb. Rev. Stat. 25-1552 |
| Household Goods | $3,000 total | Neb. Rev. Stat. 25-1556 |
| Tools of Trade and Professional Supplies | $5,000 total | Neb. Rev. Stat. 25-1556 |
| One Motor Vehicle | $5,000 | Neb. Rev. Stat. 25-1556 |
| Prescribed Health Aids | No Limit | Neb. Rev. Stat. 25-1556 |
These exemptions only apply to natural persons, so corporate bank accounts get none.
Does Nebraska Allow a Confession of Judgment?
Nebraska's confession of judgment statute, Neb. Rev. Stat. 25-1309, is not built around a party simply filing an affidavit as in other states. Rather, a debtor personally appears in court and confesses the debt with the assent of the creditor. And after the 2019 amendment to New York CPLR 3218, a confession of judgment generally cannot be filed in New York unless the defendant lives there. See our article on what a confession of judgment is and whether it is still legal.
Does Nebraska Have a Usury Cap and Can My Merchant Cash Advance Violate It?
If your company is an LLC, corporation, or partnership, your debt is unlikely to be subject to a usury cap in Nebraska. The general cap is 16% per year under Neb. Rev. Stat. 45-101.03, but Nebraska exempts any loan to a corporation, partnership, limited liability company, or trust, the guarantor of such a loan, and any loan of $100,000 or more. See Neb. Rev. Stat. 45-101.04 (operative July 18, 2026). So even if the debt was deemed a loan, the cap would not apply. Moreover, under Neb. Rev. Stat. 45-105 a usurious contract is not void, so even for a sole proprietorship there is a very limited argument that the debt is invalid. See our article on whether a merchant cash advance can be usurious. A provider arguing that your debt is void in Nebraska is likely not well versed in Nebraska law.
What happens if a funder sues you out of state and brings the judgment to Nebraska?
Once a funder obtains a judgment against you in another state, it can domesticate the judgment in Nebraska under the Uniform Enforcement of Foreign Judgments Act. The funder files an authenticated copy with the clerk of a Nebraska court, along with an affidavit giving your name and address, and the judgment is then enforced as if it were a Nebraska judgment. The clerk mails you notice. See Neb. Rev. Stat. 25-1587.04. The Nebraska court can examine whether the issuing court had jurisdiction over you. See Deuth v. Ratigan (1999).
For most Nebraska businesses the filing will be in Douglas County (4th Judicial District, 18 district judges) or Lancaster County (3rd Judicial District, 8). See Neb. Rev. Stat. 24-301.02. Once the funder has a judgment, it can go after your business accounts, your home equity above the homestead cap, and your wages to the extent Nebraska law allows. Your best chance to settle the debt is before the judgment is domesticated.
What should you expect from a provider helping you in Nebraska?
- Help with home equity over $120,000 and Nebraska's limited personal property exemptions.
- Access to a lawyer who can appear in Douglas County or Lancaster County District Court.
- Timely contact with the funders (there is a 5 year statute of limitations on written contracts).
- No promise of a usury verdict if you borrowed as an entity and guaranteed the loan.
- The terms of their fees in writing (no Nebraska law regulates fees for settling only business debt).
Frequently Asked Questions
Do business debt settlement companies need to be licensed in Nebraska?
No, if they are only settling business debt. The Nebraska Debt Management Act covers only debtors whose principal income is derived from wages, salary, or commission, so it is up to you to choose a reputable company.
How long does a funder have to sue me in Nebraska?
5 years for a written contract. See Neb. Rev. Stat. 25-205. The MCA contract and the guaranty are both in writing. Making voluntary payments can extend the statute of limitations, which begins to run for a guarantor once the business defaults.
Can a funder garnish my wages if I am a guarantor?
Yes, after a judgment. Neb. Rev. Stat. 25-1558 allows garnishment of 25% of your disposable earnings for that week or the amount by which they exceed 30 times the federal minimum hourly wage, whichever is less. If you are the head of a family, the garnishment is limited to 15%.
How long is a judgment good for in Nebraska?
If execution is not issued within 5 years, the judgment becomes dormant, and it must be revived within 10 years after that. See Neb. Rev. Stat. 25-1515.