|
If you're not able to pay your debts, bankruptcy gives you 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. The concept of "notice" is crucial in bankruptcy since it's handled in court and is governed by federal law. 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. 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. 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. 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. 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. To avoid this, make sure to list all your creditors, using their most recent address. This insures that they get proper notice of your bankruptcy case. Chapter 7 cases generally don't have any non-exempt assets to distribute. 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. In Nebraska, these types of cases are not as problematic. According to Nebraska's Bankruptcy Court, if no assets are available for distribution, the debt is discharged whether the creditor was notified or not. 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. You can put a stop to those calls and get back on the road to financial recovery with a call to a qualified Omaha Bankruptcy Lawyer. Get your finances in order and your life on track by working with a skilled Omaha Bankruptcy Attorney right away. Omaha Bankruptcy Attorneys Omaha Bankruptcy Lawyers Omaha Chapter
Related Articles -
Omaha, Bankruptcy, Attorneys,
| 
