Nebraska debt statute of limitations

Nebraska limitation periods by type of debt

Unwritten/open-account debt is 4 years (§ 25-206); written contracts 5 years (§ 25-205).

What the Nebraska statute says

“(1) Except as provided in subsection (2) of this section, an action upon a specialty, or any agreement, contract, or promise in writing, or foreign judgment, can only be brought within five years.”
Neb. Rev. Stat. § 25-205(1)

“An action upon a contract, not in writing, expressed or implied, or an action upon a liability created by statute, other than a forfeiture or penalty, can only be brought within four years.”
Neb. Rev. Stat. § 25-206

Does paying restart the clock in Nebraska?

A voluntary part payment, or a written acknowledgment or promise, starts a new period (Neb. Rev. Stat. § 25-216).

“In any cause founded on contract, when any part of the principal or interest shall have been voluntarily paid, or an acknowledgment of an existing liability, debt or claim, or any promise to pay the same shall have been made in writing, an action may be brought in such case within the period prescribed for the same, after such payment, acknowledgment or promise;”
Neb. Rev. Stat. § 25-216

Nebraska’s own debt collection law

Nebraska's Collection Agency Act regulates collection agencies; § 45-602 defines a collection agency to include those who solicit claims owed to others and assert, enforce, or prosecute them, subject to listed exclusions.

“(2) Collection agency means and includes: (a) All persons, firms, corporations, and associations directly or indirectly engaged in soliciting, from more than one person, firm, corporation, or association, claims of any kind owed or due or asserted to be owed or due such solicited person, firm, corporation, or association,”
Neb. Rev. Stat. § 45-602 (Collection Agency Act)

If a creditor wins a judgment in Nebraska

The statute of limitations is a defense to the lawsuit. If the creditor sues within the deadline and wins — or wins by default because nobody answered — different Nebraska rules take over.

How long a judgment lasts

In Nebraska, a judgment becomes dormant (and stops operating as a lien) if no execution is issued within five years after entry or within five years after the last execution; dormant judgments can be revived under separate procedures not quoted here.

“If execution is not sued out within five years after the date of entry of any judgment that now is or may hereafter be rendered in any court of record in this state, or if five years have intervened between the date of the last execution issued on such judgment and the time of suing out another writ of execution thereon, such judgment, and all taxable costs in the action in which such judgment was obtained, shall become dormant”
Neb. Rev. Stat. § 25-1515

Wage garnishment

For ordinary debts, Nebraska limits wage garnishment to the lesser of 25% of weekly disposable earnings, the amount above 30 times the federal minimum hourly wage, or 15% of disposable earnings if the debtor is a head of a family (support orders, bankruptcy orders and tax debts are excluded).

“(a) Twenty-five percent of his or her disposable earnings for that week; (b) The amount by which his or her disposable earnings for that week exceed thirty times the federal minimum hourly wage prescribed by 29 U.S.C. 206(a)(1) in effect at the time earnings are payable; or (c) Fifteen percent of his or her disposable earnings for that week, if the individual is a head of a family.”
Neb. Rev. Stat. § 25-1558(1)

Small claims court

Nebraska Small Claims Court's jurisdictional limit is $7,500 (exclusive of interest and costs) beginning July 1, 2025.

“The jurisdictional amount is six thousand dollars from July 1, 2024, through June 30, 2025. The jurisdictional amount is seven thousand five hundred dollars beginning July 1, 2025.”
Neb. Rev. Stat. § 25-2802(4)

What to do next

1. Find the date of your last payment or account activity — that is usually when the clock started.
2. If a collector contacted you in the last 30 days, dispute in writing first: the validation letter generator asks the collector to verify the debt without admitting it.
3. Do not pay or sign anything on an old debt until you know how Nebraska treats a payment (above).
4. If you are sued, respond by the deadline on the summons and raise the statute of limitations as a defense.

Common questions

How long can a debt collector sue me in Nebraska?

4 years for credit-card debt and 5 years on a written contract, under Neb. Rev. Stat. § 25-205; § 25-206. The period usually runs from your last payment or the date of default.

Does a payment restart the clock in Nebraska?

A voluntary part payment, or a written acknowledgment or promise, starts a new period (Neb. Rev. Stat. § 25-216).

Does Nebraska have its own debt collection law?

Nebraska's Collection Agency Act regulates collection agencies; § 45-602 defines a collection agency to include those who solicit claims owed to others and assert, enforce, or prosecute them, subject to listed exclusions. (Neb. Rev. Stat. § 45-602 (Collection Agency Act)).

How long does a court judgment last in Nebraska?

In Nebraska, a judgment becomes dormant (and stops operating as a lien) if no execution is issued within five years after entry or within five years after the last execution; dormant judgments can be revived under separate procedures not quoted here. (Neb. Rev. Stat. § 25-1515).

How much of my pay can be garnished in Nebraska?

For ordinary debts, Nebraska limits wage garnishment to the lesser of 25% of weekly disposable earnings, the amount above 30 times the federal minimum hourly wage, or 15% of disposable earnings if the debtor is a head of a family (support orders, bankruptcy orders and tax debts are excluded). (Neb. Rev. Stat. § 25-1558(1)).

What if I am sued on an old debt in Nebraska?

Respond by the deadline on the summons. An expired limitations period is a defense you generally have to raise yourself; a court that hears nothing from you can enter a default judgment.