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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. 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. 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. The trustee can claim some of the debtor's non-exempt assets such as savings or checking account funds or tax refund money. The debtor in a chapter 13 case makes payments to the trustee and the creditors are entitled to those funds. The creditors listed on the bankruptcy are paid their share of these non-exempt funds. 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. This debt will not be wiped out simply because the creditor was not listed. 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. There are typically no assets that are non-exempt to distribute in chapter 7 bankruptcy 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. According to Nebraska's Bankruptcy Court, if no assets are available for distribution, the debt is discharged whether the creditor was notified or not. It is still best to make sure you list everyone you owe in your bankruptcy. Typically creditors will stop contacting you about your debt once they know you filed for bankruptcy. 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. Things will stay the same, or get worse, if you do nothing. 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
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