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For those who are unable to pay their debts, bankruptcy gives them a chance to start over. 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. Because bankruptcy is something that happens in Court and is governed by Federal law, the concept of 'Notice' is extremely 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. 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. 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. 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. You should know that even if a creditor is not listed, they can still collect a debt you owe. What this means is that this debt is not wiped out and you will still owe it. 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. Usually there are no non-exempt asses to distribute in chapter 7 cases. A creditor who is not listed in a no-asset case has no reason to complain. Even if they were notified of the bankruptcy they wouldn't receive anything from the trustee. In Nebraska, these types of cases are not as problematic. 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. 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". 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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