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Filing bankruptcy gives people the ability to start over by erasing their debts. 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. You must understand the concept of "notice" when dealing with bankruptcy since it is governed by federal law and takes place in court. Creditors, and anyone involved in a bankruptcy, must be informed that someone is asking that their debts be forgiven. Creditors must be given the opportunity to present claims to the court when someone is looking for debt relief under bankruptcy law. 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. 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. In order for a creditor to receive their fair share of these assets, they must be listed on the bankruptcy. Even after a bankruptcy case is closed, a creditor not listed can make a successful claim for any debt you owe. What this means is that this debt is not wiped out and you will still owe it. 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. In most chapter 7 cases, there are no non-exempt assets to distribute. In a "no-asset" case a creditor who is not listed doesn't have much to complain about. There is no money to distribute so even if they were listed, they wouldn't receive any money. These types of cases are not a problem in Nebraska because the Bankruptcy Court will discharge the debt even if the creditor is not listed, as long as there are no assets to distribute. However, it's still a good idea to list all your creditors when filing bankruptcy because once they receive notice of your filing they will likely quit contacting you about your 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. The bad news is that if you don’t do anything….things will most likely stay the same or get worse. You can put a stop to those calls and get back on the road to financial recovery with a call to a qualified Omaha Bankruptcy Lawyer. 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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