Article by Subrata Jana
Bankruptcy offers those in need the chance to get a fresh start by wiping out the debts they cannot pay. 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. Creditors must be given the opportunity to present claims to the court when someone is looking for debt relief under bankruptcy law.
If your creditors don’t get proper notice sent to the proper address, you are in danger of not getting that particular debt 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. The creditors listed on the bankruptcy are paid their share of these non-exempt funds. In order for a creditor to receive their fair share of these assets, they must be listed on the bankruptcy.
In cases where there are assets to be distributed, a creditor who was not listed will be able to successfully make a claim for that debt, even after your discharge. Just because they are not listed does not mean you don’t have to pay. As you can see, it is vital to include all information about your creditors on your bankruptcy case.
Chapter 7 cases generally don’t have any non-exempt assets to distribute. There is no reason for a creditor to complain about not being listed in a “no asset” case. Even if they were notified of the bankruptcy they wouldn’t receive anything from the trustee. In Nebraska it doesn’t really matter if creditors are notified or not because the Bankruptcy Court will discharge the debt whether the creditor was listed or not as long as there are no assets to distribute.
You still want to make sure you list all your creditors. Typically creditors will stop contacting you about your debt once they know you filed for bankruptcy.
You probably feel like you’re under the “financial gun” if you are getting calls from creditors, are facing repossession, foreclosure or wage garnishments. Things will stay the same, or get worse, if you do nothing. If you choose to work with a skilled Omaha Bankruptcy Lawyer, however, you can start to get some peace of mind and put an end to the aggravation. Contact a professional Omaha Bankruptcy Attorney right away to get on the road to a better life.
About the Author
Brian Douglas is an Omaha Bankruptcy Attorneys offering affordable chapter
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