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Bankruptcy offers those in need the chance to get a fresh start by wiping out the debts they cannot pay. 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. The concept of "notice" is crucial in bankruptcy since it's handled in court and is governed by federal law. Creditors, and anyone involved in a bankruptcy, must be informed that someone is asking that their debts be forgiven. 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. Funds including tax returns, checking and savings accounts are considered non-exempt in some chapter 7 cases. In a chapter 13 case there are always assets that creditors are entitled to, namely the payments that the debtor makes to the chapter 13 trustee. The trustee pays the creditors who were listed in the bankruptcy their share of those non-exempt assets. If a creditor was not listed in the bankruptcy then there is no way for them to receive their fair share from the trustee. However, even if a creditor is left off of the bankruptcy list, they are still able to make a claim for what you owe. This debt will not be wiped out simply because the creditor was not listed. To make sure this doesn't happen, be careful to list all your creditors and their addresses. Including addresses makes sure the creditors receive notice about your 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. There is no money to distribute so even if they were listed, they wouldn't receive any money. 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 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. Contact a professional Omaha Bankruptcy Attorney right away to get on the road to a better life. Omaha Bankruptcy Attorneys Omaha Bankruptcy Lawyers Omaha Chapter
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