|
For those who are unable to pay their debts, bankruptcy gives them 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. You must understand the concept of "notice" when dealing with bankruptcy since it is governed by federal law and takes place in court. 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. 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. Creditors listed on the bankruptcy are entitled to their share of these non-exempt assets. The trustee is unable to pay a creditor their fair share of these assets if they are not 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. Just because they are not listed does not mean you don't have to pay. 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. There is no reason for a creditor to complain about not being listed in a "no asset" case. Since there are no funds to be distributed, the creditors wouldn't receive any money anyway. In Nebraska, these types of cases are not as problematic. According to Nebraska's Bankruptcy Court, if no assets are available for distribution, the debt is discharged whether the creditor was notified or not. 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'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. 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
Related Articles -
Omaha, Bankruptcy, Attorneys,
| 
