Don't Miss These Deadlines
With an economic downturn on the horizon, there is likely to be a high rate a default on credit cards, home mortgages, and car loans. Nebraskans will need to know what deadlines that they must pay attention to in order to avoid an emergency or disaster.
Answering Lawsuit. You have 30 days from being served with a lawsuit to file a response. If you miss this deadline, the plaintiff (creditor) bringing the lawsuit, can obtain a default judgment and move forward with garnishing your wages and/or your bank accounts. The Nebraska Supreme Court provides a general answer and denial for you to prepare and file with the court.
Claiming Exemptions. If a creditor obtains a judgment against you and moves forward with garnishing your bank account, you should receive a Notice to Judgment Debtor. You have to move swiftly having only 3 business days from receiving the notice to request a hearing to determine if the account is exempt. In Nebraska, you have a $5,000 wildcard exemption to protect a bank account, meaning if you have $5,000 or less in your account it is fully exempt (protected).
Trust Deed Foreclosure. Most foreclosures in Nebraska are completed pursuant to the Nebraska Trust Deed Act, meaning that the creditor/lender does not have to initiate a court action to foreclose. The lender simply has to file a Notice of Default with the Register of Deeds for the county where the Deed of Trust is filed. The lender will send that Notice by certified mail to the borrower. The lender then has to wait 30 days after filing the Notice of Default before publishing notice of sale, which has to run for five (5) consecutive weeks. Once the sale takes place, there is no right of redemption in Nebraska.
Right to Cure Car Loan. The lender has to provide written notice to the borrower that the borrower has 20 days to cure the default from borrower's failure to make a required payment. If the default is not cured, then the borrower can accelerate the loan, making the entirety of the loan due, and pursue repossession. The lender is not required to provide the same notice and the borrower has no right to cure.
Instead of worrying what will come next, meet with a bankruptcy attorney to discover your options tailored to your situation. Patino Law Office is a boutique bankruptcy firm located in Omaha, Nebraska providing services statewide.