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For those who are unable to pay their debts, bankruptcy gives them a chance to start over. You have to give the Bankruptcy trustee and Bankruptcy court substantial information in order to take advantage of this "do over". You must provide information about your income, your assets and all the people to whom you owe money. Because bankruptcy is something that happens in Court and is governed by Federal law, the concept of 'Notice' is extremely important. 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 given the opportunity to present claims to the court when someone is looking for debt relief under bankruptcy law. You must list your creditors and send notice to their address or else your debt may not be discharged in the bankruptcy. Funds including tax returns, checking and savings accounts are considered non-exempt in some chapter 7 cases. Assets paid to the trustee in chapter 13 cases are to be paid to the creditors. The creditors listed on the bankruptcy are paid their share of these non-exempt funds. 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. 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. Including addresses makes sure the creditors receive notice about 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. 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 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. The good news is that by working with an experienced Omaha Bankruptcy Lawyer, you can stop the aggravation and get back some of the peace of mind you’ve lost. 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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