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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. Information you must provide includes not only who you owe money to but how much income you earn and what assets you have. 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. If proper notice is not given, they do not have the opportunity to present claims 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. The debtor in a chapter 13 case makes payments to the trustee and the creditors are entitled to those funds. The trustee pays the creditors who were listed in the bankruptcy their share of those non-exempt assets. 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. 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. Usually there are no non-exempt asses to distribute in chapter 7 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, 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 still want to make sure you list all your creditors. Typically creditors will stop contacting you about your debt once they know you filed for bankruptcy. If you're constantly being contacted by bill collectors and are facing foreclosure, garnishment or repossession, you probably feel like you're under the "financial gun". 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 finances in order and your life on track by working with a skilled Omaha Bankruptcy Attorney right away. Omaha Bankruptcy Attorneys Omaha Bankruptcy Lawyers Omaha Chapter
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