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If you're not able to pay your debts, bankruptcy gives you a chance to start over. 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. Because bankruptcy is something that happens in Court and is governed by Federal law, the concept of 'Notice' is extremely important. All parties to a person's bankruptcy, including creditors, must be given proper notice that person is asking that their debts be discharged, or wiped out. Creditors must be informed that someone is looking for debt relief in order to present claims to the court. If your creditors don't get proper notice sent to the proper address, you are in danger of not getting that particular debt discharged. 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 creditors listed on the bankruptcy are paid their share of these non-exempt funds. In order for a creditor to receive their fair share of these assets, they must be listed on the bankruptcy. In cases where there are assets to be distributed, a creditor who was not listed will be able to successfully make a claim for that debt, even after your discharge. Just because they are not listed does not mean you don't have to pay. To avoid this, make sure to list all your creditors, using their most recent address. This insures that they get proper notice of your bankruptcy case. In most chapter 7 cases, there are no non-exempt assets to distribute. Creditors in a "no-asset" case who are not listed have no reason to complain. Even if they were notified of the bankruptcy they wouldn't receive anything from the trustee. These cases are not problematic in the state of Nebraska. 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. You still want to make sure you list all your creditors. Typically creditors will stop contacting you about your debt once they know you filed for bankruptcy. 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". Things will stay the same, or get worse, if you 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 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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