NE LB174

Reduces the maximum wage garnishment for medical debt from 25% to 10% of disposable earnings per workweek when sought by medical debt buyers or medical creditors

Limits garnishment for medical debt to 20% of disposable earnings for individuals who are not heads of families, requiring the judgment creditor to establish this status through a sworn affidavit

Defines "medical debt" as debt arising from health care services, including diagnosis, prevention, treatment, or cure of physical, dental, behavioral, or mental health conditions

Defines "medical debt buyer" as any person or entity that purchases medical debts for collection purposes, whether collecting directly or through third parties

Amends Section 25-1558 of the Reissue Revised Statutes of Nebraska; introduced by Senator Prokop on January 13, 2025