Saturday, July 28, 2007
The creditor had a judgment against the defendant for over $5000 and garnished her bank account when she had a balance of about $1500. She claimed the substitute cash exemption from 25-1552 but the county court agreed with the creditor that the exemption did not apply to garnishments. Nebraska court of appeals reverses and holds that a judgment debtor my use her cash exemption to hold off the bank garnishment. ARL Credit Servs. v. Piper, A-06-090, 15 Neb. App. 811 "a judgment debtor may assert the in-lieu-of-homestead exemption, provided by Neb. Rev. Stat. § 25-1552 (Cum. Supp. 2006), in response to a garnishment summons against the judgment debtor’s bank account. Because such exemption is authorized by statute and supported in case law and long-established practice, we reverse the county and district court judgments of the courts." However because it was not clear whether the defendant timely asked the court to exempt the property, the court of appeals reverses for further proceedings.