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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. 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. 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. Your debt may not be discharged if a creditor does not receive proper notice at their address. The trustee can claim some of the debtor's non-exempt assets such as savings or checking account funds or tax refund money. 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. These non-exempt assets are payable by the trustee to the creditors listed on the bankruptcy. There is no way for a creditor to receive their fair share of a debt if they are not listed on the bankruptcy. You should know that even if a creditor is not listed, they can still collect a debt you owe. What this means is that this debt is not wiped out and you will still owe it. 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. In a "no-asset" case a creditor who is not listed doesn't have much to complain about. 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. You still want to make sure you list all your creditors. Once a creditor knows that you filed bankruptcy, in most cases they stop contacting you regarding the debt. You probably feel like you're under the "financial gun" if you are getting calls from creditors, are facing repossession, foreclosure or wage garnishments. Things will stay the same, or get worse, if you 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. 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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