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Basically, the answer to this question is yes but read further for more information. If you're not able to pay your debts, bankruptcy gives you a chance to start over. It's necessary to provide a lot of information to the Bankruptcy Court in order to take advantage of this huge fresh start. You must provide information about your income, your assets and all the people to whom you owe money. Bankruptcy is governed by federal law and happens in court so "notice" is really important. Appropriate notice has to be given to creditors so that they are aware that an individual is asking for his debts to be 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. The trustee can claim some of the debtor's non-exempt assets such as savings or checking account funds or tax refund money. Assets paid to the trustee in chapter 13 cases are to be paid to the creditors. The trustee pays the creditors who were listed in the bankruptcy their share of those 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. You should know that even if a creditor is not listed, they can still collect a debt you owe. This debt will not be wiped out simply because the creditor was not listed. 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. Since there are no funds to be distributed, the creditors wouldn't receive any money anyway. 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. 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. If you are facing garnishments, repossessions, foreclosure and bill collector’s telephone calls, then you know what being under the “financial-gun” is like. 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. Get your life back by contacting an Omaha Bankruptcy Attorney today. Omaha Bankruptcy Attorneys Omaha Bankruptcy Lawyers Omaha Chapter
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