LB174

Nebraska LB174 would limit wage garnishment for medical debt to 10% of disposable earnings.

Nebraska LB174 amends the state's wage garnishment law to limit the amount of disposable earnings subject to garnishment for medical debt. The bill sets the maximum garnishment for medical debt at the lesser of 10% of an individual's disposable earnings or the amount by which their earnings exceed 30 times the federal minimum hourly wage. This change applies to medical debt buyers and medical creditors, who are defined as entities purchasing or collecting medical debts.