Bill > LB174

This bill modifies Nebraska's existing wage garnishment law to create a special provision specifically for medical debt. Currently, wage garnishment is limited to 25% of disposable earnings, but the new bill establishes a lower threshold of 10% for medical debts sought by medical debt buyers or medical creditors. If the individual is not a head of a family, the garnishment can be up to 20% of disposable earnings. The bill introduces several new definitions, including "health care services" (which covers a broad range of medical treatments), "medical debt" (debt arising from receiving health care services), "medical debt buyer" (an entity that purchases medical debts for collection), and "medical creditor" (an entity providing or previously providing health care services). The legislation maintains existing protections that prevent employers from firing employees due to wage garnishment and ensures that any assignment or transfer of exempt wages remains unenforceable. By creating a distinct category for medical debt with lower garnishment limits, the bill aims to provide some financial relief for individuals struggling with medical expenses while still allowing creditors a path to collect outstanding medical debts.

Justice

https://nebraskalegislature.gov/bills/view_bill.php?DocumentID=59528