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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". Information you must provide includes not only who you owe money to but how much income you earn and what assets you have. Bankruptcy is governed by federal law and happens in court so "notice" is really important. All parties to a person's bankruptcy, including creditors, must be given proper notice that person is asking that their debts be discharged, or wiped out. If proper notice is not given, they do not have the opportunity to present claims to the court. You must list your creditors and send notice to their address or else your debt may not be discharged in the bankruptcy. 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. The trustee pays the creditors who were listed in the bankruptcy their share of those non-exempt assets. In order for a creditor to receive their fair share of these assets, they must be 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. What this means is that this debt is not wiped out and you will still owe it. As you can see, it is vital to include all information about your creditors on your bankruptcy case. Usually there are no non-exempt asses to distribute in chapter 7 cases. Creditors in a "no-asset" case who are not listed have no reason to complain. The creditors in this case will not receive any money even if they were notified of the bankruptcy. 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. You should still let your creditors know about your bankruptcy because they will usually stop contacting you regarding money you owe. 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 life back by contacting an Omaha Bankruptcy Attorney today. Omaha Bankruptcy Attorneys Omaha Bankruptcy Lawyers Omaha Chapter
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