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If you're not able to pay your debts, bankruptcy gives you 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. The concept of "notice" is crucial in bankruptcy since it's handled in court and is governed by federal law. 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 given the opportunity to present claims to the court when someone is looking for debt relief under bankruptcy law. 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. 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. The debtor in a chapter 13 case makes payments to the trustee and the creditors are entitled to those funds. 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. Just because they are not listed does not mean you don't have to pay. As you can see, it is vital to include all information about your creditors on your bankruptcy case. There are typically no assets that are non-exempt to distribute in chapter 7 bankruptcy cases. A creditor who is not listed in a no-asset case has no reason to complain. Even if they were notified of the bankruptcy they wouldn't receive anything from the trustee. In Nebraska it doesn't really matter if creditors are notified or not because the Bankruptcy Court will discharge the debt whether the creditor was listed or not 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 facing garnishments, repossessions, foreclosure and bill collector’s telephone calls, then you know what being under the “financial-gun” is like. The problem will just get worse if you don't do anything. 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 your life back by contacting an Omaha Bankruptcy Attorney today. Omaha Bankruptcy Attorneys Omaha Bankruptcy Lawyers Omaha Chapter
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