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If you're not able to pay your debts, bankruptcy gives you 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. 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. If your creditors don't get proper notice sent to the proper address, you are in danger of not getting that particular debt 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. These non-exempt assets are payable by the trustee to the creditors listed on the bankruptcy. 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. 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. In most chapter 7 cases, there are no non-exempt assets to distribute. Creditors in a "no-asset" case who are not listed have no reason to complain. Even if they were notified of the bankruptcy they wouldn't receive anything from the trustee. These cases are not problematic in the state of Nebraska. 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. It is still best to make sure you list everyone you owe in your bankruptcy. 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. 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 in touch with a qualified Omaha Bankruptcy Attorney right away to get your case underway and get your life back. Omaha Bankruptcy Attorneys Omaha Bankruptcy Lawyers Omaha Chapter
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