a term that comes out of the Upper Midwest of the US commonly used to refer to little bits of paper. Not actually based on anything German, but German-sounding due to the Lutheran culture of the area (hence the spelling.)
1)the rough edges of notebook paper after it's been ripped out of said notebook
2)the holes that get punched out of hole-punched paper
3)the remains of a piece of paper after it has been torn to little bits
4)little bits of garbage in general
Don't even think about leaving those schnibbles all over the floor, pick them up and throw them away!