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Bankruptcy offers those in need the chance to get a fresh start by wiping out the debts they cannot pay. 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. Proper notice must be given to all parties involved in a bankruptcy that someone is asking that their debts be discharged - this includes creditors. If proper notice is not given, they do not have the opportunity 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. The trustee can claim some of the debtor's non-exempt assets such as savings or checking account funds or tax refund money. 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. Even after a bankruptcy case is closed, a creditor not listed can make a successful claim for any debt 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. Usually there are no non-exempt asses to distribute in chapter 7 cases. There is no reason for a creditor to complain about not being listed in a "no asset" case. Even if they were notified of the bankruptcy they wouldn't receive anything from the trustee. 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. 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. Contact a professional Omaha Bankruptcy Attorney right away to get on the road to a better life. Omaha Bankruptcy Attorneys Omaha Bankruptcy Lawyers Omaha Chapter
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