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Bankruptcy offers those in need the chance to get a fresh start by wiping out the debts they cannot pay. In exchange for this monumental 'do-over' or fresh start, a person has to give a lot of information to the Bankruptcy Court and the Bankruptcy trustee, stating their income, their assets and of course the people and businesses they owe money to. Bankruptcy is governed by federal law and happens in court so "notice" is really important. Proper notice must be given to all parties involved in a bankruptcy that someone is asking that their debts be discharged - this includes creditors. If proper notice is not given, they do not have the opportunity to present claims to the court. If your creditors don't get proper notice sent to the proper address, you are in danger of not getting that particular debt discharged. 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. Creditors listed on the bankruptcy are entitled to their share of these non-exempt assets. If a creditor was not listed in the bankruptcy then there is no way for them to receive their fair share from the trustee. 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. Including addresses makes sure the creditors receive notice about your case. Usually there are no non-exempt asses to distribute in chapter 7 cases. In a "no-asset" case a creditor who is not listed doesn't have much to complain about. The creditors in this case will not receive any money even if they were notified of the bankruptcy. These types of cases are not a problem in Nebraska because the Bankruptcy Court will discharge the debt even if the creditor is not listed, as long as there are no assets to distribute. However, it's still a good idea to list all your creditors when filing bankruptcy because once they receive notice of your filing they will likely quit contacting you about your debt. If you are looking into declaring bankruptcy, you are likely facing foreclosure, repossession or garnishments and you are probably being contacted constantly by bill collectors. The problem will just get worse if you don't do anything. 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 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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