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LB 871

Increase and provide for inflation adjustments for amounts exempt from judicial enforcement and the homestead and exempt property allowances

109th Legislature (2025-2026) Introduced by Danielle Conrad

LB 871 raises Nebraska's debt exemption amounts and homestead protections while establishing automatic inflation adjustments to preserve their purchasing power over time.

Notice of hearing for February 04, 2026
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WeVote Research Nonpartisan
Bill Summary · LB 871

Legislative bill overview

LB 871 increases the dollar amounts that Nebraska residents can exempt from judicial enforcement (such as wage garnishment and asset seizure) and raises homestead and exempt property allowances. The bill also establishes automatic inflation adjustments for these exemption amounts going forward, tied to changes in the cost of living.

Why is this important

These exemptions directly protect Nebraskans' ability to maintain housing, retain essential property, and preserve minimum income during debt collection proceedings. Inflation adjustment mechanisms ensure these protections don't erode over time as the value of money decreases, maintaining consistent real-world protection across generations.

Potential points of contention

  • Creditor impact: Higher exemptions may reduce creditors' ability to collect debts and could increase lending costs or stricter credit requirements for borrowers
  • Fiscal implications: Automatic inflation adjustments create open-ended budget commitments without future legislative votes, raising concerns about fiscal predictability
  • Adequacy debate: Stakeholders will likely disagree on whether proposed exemption amounts are sufficient for genuine hardship protection versus excessive debtor protection

Compiled from official sources — confirm details with the bill’s official record.

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