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Bankruptcy offers those in need the chance to get a fresh start by wiping out the debts they cannot pay. It's necessary to provide a lot of information to the Bankruptcy Court in order to take advantage of this huge fresh start. Information you must provide includes not only who you owe money to but how much income you earn and what assets you have. Bankruptcy is governed by federal law and happens in court so "notice" is really important. Appropriate notice has to be given to creditors so that they are aware that an individual is asking for his debts to be wiped out. If they aren't told that the debtor is seeking relief under bankruptcy law then they don't have an opportunity to present whatever claims they may have to the Court. The danger of not listing all your creditors and sending notice to them at their proper address, is that at the conclusion of the bankruptcy that debt may not be discharged. In some chapter 7 cases, the debtor has non-exempt assets that the trustee claims, such as tax refunds or money in checking or savings accounts. Creditors are able to claim some assets in chapter 13 cases such as the money the trustee is paid. The creditors listed on the bankruptcy are paid their share of these non-exempt funds. The trustee is unable to pay a creditor their fair share of these assets if they are not listed on the bankruptcy. However, even if a creditor is left off of the bankruptcy list, they are still able to make a claim for what you owe. This debt will not be wiped out simply because the creditor was not listed. To avoid this, make sure to list all your creditors, using their most recent address. Including addresses makes sure the creditors receive notice about your case. Usually there are no non-exempt asses to distribute in chapter 7 cases. A creditor who is not listed in a no-asset case has no reason to complain. Even if they were notified of the bankruptcy they wouldn't receive anything from the trustee. In Nebraska, these types of cases are not as problematic. The Bankruptcy Court in Nebraska has held that even if a creditor was not listed, if there were no assets to distribute, the debt is still discharged. It is still best to make sure you list everyone you owe in your bankruptcy. Once a creditor knows that you filed bankruptcy, in most cases they stop contacting you regarding the debt. If you are looking into declaring bankruptcy, you are likely facing foreclosure, repossession or garnishments and you are probably being contacted constantly by bill collectors. Nothing will get better if you choose to do nothing. The good news is that by working with an experienced Omaha Bankruptcy Lawyer, you can stop the aggravation and get back some of the peace of mind you’ve lost. Get your life back by contacting an Omaha Bankruptcy Attorney today.Omaha Bankruptcy Attorneys Omaha Bankruptcy Lawyers Omaha Chapter
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