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Filing bankruptcy gives people the ability to start over by erasing their debts. In order to get this chance to start over, you have to provide quite a bit of information to the Bankruptcy Court and Bankruptcy trustee such as your assets and income as well as who you owe. Bankruptcy is governed by federal law and happens in court so "notice" is really 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. 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. The trustee can claim some of the debtor's non-exempt assets such as savings or checking account funds or tax refund money. Creditors are able to claim some assets in chapter 13 cases such as the money the trustee is paid. Creditors listed on the bankruptcy are entitled to their share of these 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. Even after a bankruptcy case is closed, a creditor not listed can make a successful claim for any debt you owe. So, you will still owe this debt; it will not be wiped out. To make sure this doesn't happen, be careful to list all your creditors and their addresses. This insures that they get proper notice of your bankruptcy 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. Since there are no funds to be distributed, the creditors wouldn't receive any money anyway. These cases are not problematic in the state of Nebraska. According to Nebraska's Bankruptcy Court, if no assets are available for distribution, the debt is discharged whether the creditor was notified or not. 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'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. 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 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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