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Bankruptcy offers those in need the chance to get a fresh start by wiping out the debts they cannot pay. You have to give the Bankruptcy trustee and Bankruptcy court substantial information in order to take advantage of this "do over". You must provide information about your income, your assets and all the people to whom you owe money. The concept of "notice" is crucial in bankruptcy since it's handled in court and is governed by federal law. 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. Your debt may not be discharged if a creditor does not receive proper notice at their address. Some funds in chapter 7 cases including tax returns, savings and checking accounts, can be considered non-exempt by the trustee. Assets paid to the trustee in chapter 13 cases are to be paid to the creditors. Creditors listed on the bankruptcy are entitled to their share of these non-exempt assets. The trustee is unable to pay a creditor their fair share of these assets 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. 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. In a "no-asset" case a creditor who is not listed doesn't have much to complain about. There is no money to distribute so even if they were listed, they wouldn't receive any money. In Nebraska it doesn't really matter if creditors are notified or not because the Bankruptcy Court will discharge the debt whether the creditor was listed or not as long as there are no assets to distribute. You still want to make sure you list all your creditors. Once a creditor knows that you filed bankruptcy, in most cases they stop contacting you regarding the debt. You probably feel like you're under the "financial gun" if you are getting calls from creditors, are facing repossession, foreclosure or wage garnishments. The bad news is that if you don’t do anything….things will most likely stay the same or get worse. 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. 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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