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Filing bankruptcy gives people the ability to start over by erasing their debts. It's necessary to provide a lot of information to the Bankruptcy Court in order to take advantage of this huge fresh start. You must provide information about your income, your assets and all the people to whom you owe money. The concept of "notice" is crucial in bankruptcy since it's handled in court and is governed by federal law. Proper notice must be given to all parties involved in a bankruptcy that someone is asking that their debts be discharged - this includes creditors. Creditors must be informed that someone is looking for debt relief in order to present claims 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. Some funds in chapter 7 cases including tax returns, savings and checking accounts, can be considered non-exempt by the trustee. Assets paid to the trustee in chapter 13 cases are to be paid to the creditors. 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. 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. To avoid this, make sure to list all your creditors, using their most recent address. This insures that they get proper notice of your bankruptcy case. In most chapter 7 cases, there are no non-exempt assets to distribute. Creditors in a "no-asset" case who are not listed have no reason to complain. 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. The Bankruptcy Court in Nebraska has held that even if a creditor was not listed, if there were no assets to distribute, the debt is still discharged. 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 are facing garnishments, repossessions, foreclosure and bill collector’s telephone calls, then you know what being under the “financial-gun” is like. The bad news is that if you don’t do anything….things will most likely stay the same or get worse. However, if you start working with a qualified Omaha Bankruptcy Lawyer immediately, you can stop those calls and get your finances back on track. 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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