Committee hears bipartisan push to raise exemptions, index them to inflation
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Summary
LB871 would raise homestead, wage garnishment and other exemption amounts and include automatic indexing; sponsors and Legal Aid said the changes would protect families facing medical debt and bankruptcy.
Senator Danielle Conrad told the Judiciary Committee LB871 updates long-outdated dollar amounts in Nebraska's exemption statutes, "adjusting upward" homestead and other protections and adding automatic inflation indexing so statutory amounts don't again lag real costs. Conrad said the bill was prepared with the UNL civil clinic and aims to modernize long-standing policy rather than create a new entitlement.
Law students and clinic faculty gave technical testimony and data from a 50-state survey. Benedict Kennedy and Andrew Dominguez Farias explained the homestead changes and historical intent, arguing the original 19th-century dollar amounts no longer reflect housing values. Legal Aid of Nebraska and practicing clinicians testified that larger homestead exemptions and higher wage-garnishment protections would preserve housing stability for low-income households and surviving spouses affected by medical debt.
Committee members asked about the methodology for specific percentage increases and the status of health savings accounts (HSA) in exemption law. Witnesses said the clinic used comparative research across states and that HSAs are treated differently across jurisdictions; they offered to provide follow-up materials.
No vote occurred; sponsors said they would work with committee members on rounding and indexing mechanics.
