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If you're not able to pay your debts, bankruptcy gives you a chance to start over. In exchange for this monumental 'do-over' or fresh start, a person has to give a lot of information to the Bankruptcy Court and the Bankruptcy trustee, stating their income, their assets and of course the people and businesses they owe money to. 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. Creditors must be informed that someone is looking for debt relief in order to present claims to the court. You must list your creditors and send notice to their address or else your debt may not be discharged in the bankruptcy. Funds including tax returns, checking and savings accounts are considered non-exempt in some chapter 7 cases. The debtor in a chapter 13 case makes payments to the trustee and the creditors are entitled to those funds. The trustee pays the creditors who were listed in the bankruptcy their share of those non-exempt assets. If a creditor was not listed in the bankruptcy then there is no way for them to receive their fair share from the trustee. Even after a bankruptcy case is closed, a creditor not listed can make a successful claim for any debt you owe. Just because they are not listed does not mean you don't have to pay. As you can see, it is vital to include all information about your creditors on your bankruptcy case. There are typically no assets that are non-exempt to distribute in chapter 7 bankruptcy cases. In a "no-asset" case a creditor who is not listed doesn't have much to complain about. Even if they were notified of the bankruptcy they wouldn't receive anything from the trustee. In Nebraska it doesn't really matter if creditors are notified or not because the Bankruptcy Court will discharge the debt whether the creditor was listed or not as long as there are no assets to distribute. You should still let your creditors know about your bankruptcy because they will usually stop contacting you regarding money you owe. 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. The problem will just get worse if you don't do anything. However, if you start working with a qualified Omaha Bankruptcy Lawyer immediately, you can stop those calls and get your finances back on track. Get in touch with a qualified Omaha Bankruptcy Attorney right away to get your case underway and get your life back. Omaha Bankruptcy Attorneys Omaha Bankruptcy Lawyers Omaha Chapter
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