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Bankruptcy offers those in need the chance to get a fresh start by wiping out the debts they cannot pay. You have to give the Bankruptcy trustee and Bankruptcy court substantial information in order to take advantage of this "do over". Information you must provide includes not only who you owe money to but how much income you earn and what assets you have. The concept of "notice" is crucial in bankruptcy since it's handled in court and is governed by federal law. Creditors, and anyone involved in a bankruptcy, must be informed that someone is asking that their debts be forgiven. 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. Funds including tax returns, checking and savings accounts are considered non-exempt in some chapter 7 cases. In a chapter 13 case there are always assets that creditors are entitled to, namely the payments that the debtor makes to the chapter 13 trustee. Creditors listed on the bankruptcy are entitled to their share of these non-exempt assets. There is no way for a creditor to receive their fair share of a debt 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. So, you will still owe this debt; it will not be wiped out. This is why it is so important to list all creditors and their addresses on your bankruptcy so they can get proper notice of your case. Chapter 7 cases generally don't have any non-exempt assets to distribute. A creditor who is not listed in a no-asset case has no reason to complain. Since there are no funds to be distributed, the creditors wouldn't receive any money anyway. 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. 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". Nothing will get better if you choose to do nothing. 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 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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