A Nebraska property that is used as a family residence is entitled to a homestead exemption of $60,000. That prevents creditors who do not have a security interest in the family home from recovering any of the first $60,000 of equity in the home. If the homeowner has substantially more than $60,000 in equity in the home then the home may be sold and if there are any proceeds over the amount that is owed to secured creditors and $60,000 then unsecured creditors might be able to recover it after all the rights of secured and unsecured debtors have been determined by the bankruptcy court.
However, if the homeowner has about $60,000 or less in equity and continues to make regular mortgage payments then the homeowner is likely to keep the property after filing for bankruptcy.
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