What is a "Suggestion of Bankruptcy" and Why is it Important?


A suggestion of bankruptcy is a document filed in a Nebraska county or district court collection lawsuit. It provides notice to the court, the collection agency that filed the lawsuit, and the employers with wage garnishments, that the defendant has filed bankruptcy in the United States Bankruptcy Court.

Most importantly for the bankruptcy filer, a Suggestion stops the collection lawsuit in its tracks. After a Suggestion is filed, the county court judge will cancel all upcoming trials, hearings, debtor’s exams, and garnishments. It puts on record that the creditor can’t continue with its collection lawsuit. The effect on the bankruptcy filer is a tremendous sense of relief – as if an overwhelming weight has been lifted from their shoulders.

Filing a Suggestion isn’t required, since all creditors or collection agencies will eventually receive written notice of the bankruptcy from the bankruptcy Court. But the notice isn’t sent for 2-3 days after the bankruptcy is filed, and even then it’s sent by snail mail. And the notice is only sent to the creditors and/or collection agencies – not the county court, where it may be necessary to stop a garnishment. Not exactly ideal when time is of the essence.

At Steffens Law Office, things move at a much quicker pace. Within mere minutes of filing the bankruptcy online, a Suggestion is filed online, immediately notifying the county court and the collection agency of the bankruptcy filing – bringing the client/debtor one step closer to a fresh financial start.

While the preparation and filing of a Suggestion is not free, the cost is minimal (presently $35 each) when compared to the protection and peace of mind it provides.

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