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If you're not able to pay your debts, bankruptcy gives you a chance to start over. You have to give the Bankruptcy trustee and Bankruptcy court substantial information in order to take advantage of this "do over". You must provide information about your income, your assets and all the people to whom you owe money. Because bankruptcy is something that happens in Court and is governed by Federal law, the concept of 'Notice' is extremely 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. 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. As you can see, it is vital to include all information about your creditors on your bankruptcy case. In most chapter 7 cases, there are no non-exempt assets to distribute. There is no reason for a creditor to complain about not being listed in a "no asset" case. There is no money to distribute so even if they were listed, they wouldn't receive any money. 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. 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're constantly being contacted by bill collectors and are facing foreclosure, garnishment or repossession, you probably feel like you're under the "financial gun". The problem will just get worse if you don't do anything. If you choose to work with a skilled Omaha Bankruptcy Lawyer, however, you can start to get some peace of mind and put an end to the aggravation. Get your finances in order and your life on track by working with a skilled Omaha Bankruptcy Attorney right away. Omaha Bankruptcy Attorneys Omaha Bankruptcy Lawyers Omaha Chapter
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