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For those who are unable to pay their debts, bankruptcy gives them a chance to start over. 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. Because bankruptcy is something that happens in Court and is governed by Federal law, the concept of 'Notice' is extremely important. Creditors, and anyone involved in a bankruptcy, must be informed that someone is asking that their debts be forgiven. If proper notice is not given, they do not have the opportunity 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. Creditors are able to claim some assets in chapter 13 cases such as the money the trustee is paid. These non-exempt assets are payable by the trustee to the creditors listed on the bankruptcy. If a creditor was not listed in the bankruptcy then there is no way for them to receive their fair share from the trustee. Even after a bankruptcy case is closed, a creditor not listed can make a successful claim for any debt you owe. Just because they are not listed does not mean you don't have to pay. This is why it is so important to list all creditors and their addresses on your bankruptcy so they can get proper notice of your case. There are typically no assets that are non-exempt to distribute in chapter 7 bankruptcy cases. Creditors in a "no-asset" case who are not listed have no reason to complain. There is no money to distribute so even if they were listed, they wouldn't receive any money. 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. You should still let your creditors know about your bankruptcy because they will usually stop contacting you regarding money you owe. 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. Nothing will get better if you choose to do nothing. 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 your life back by contacting an Omaha Bankruptcy Attorney today. Omaha Bankruptcy Attorneys Omaha Bankruptcy Lawyers Omaha Chapter
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