I'm a debtor in closed chapter 7 case in which there were no assets.
I recently realized that, by mistake, I forgot to list a creditor on my
schedules and on the matrix of creditors. What should I do?
| That depends on the circumstances of your
individual case and may well require the advice of an attorney. In
short, there are four things you should do: |
| (1) |
notify the creditor; |
| (2) |
determine whether the debt is discharged; |
| (3) |
if necessary, have a court determine whether the debt is
discharged; and |
| (4) |
if your case is reopened, add the creditor to your
schedules and matrix. |
| 1. |
|
Notify: Notify the
creditor immediately that you filed for bankruptcy. Give the creditor
the number of your case and, if you received a discharge, a copy of
your discharge order. If the creditor has commenced legal proceedings
to collect its debt, raise the discharge as a defense in that
proceeding. Don’t delay. Delay might cause the creditor to incur
legal expenses needlessly. Worse for you, a court might treat your
delay as a waiver of your discharge as to this debt. |
|
| 2. |
|
Dischargeability: In a
case involving no distribution to creditors, the omission of a debt
from one’s schedules and matrix makes the debt nondischargeable only
if (i) the debt is of a kind specified in paragraph (2), (4), or
(6) of § 523(a) of the Bankruptcy Code and (ii) the creditor didn’t
have notice or actual knowledge of the case in time to timely request
a determination of the dischargeability of the debt. (See section
523(a)(3)(B) of the Bankruptcy Code.) But be aware that some courts
disagree with this understanding of the law. |
|
| 3. |
|
Determining Dischargeability:
If you and the creditor disagree on the dischargeability of the debt,
the issue can be determined in either of two places. If the creditor
has commenced a proceeding against you to collect the debt in a state
court, you can (and must) raise the discharge as a defense in that
proceeding; the state court can then determine whether the discharge
covers this debt. Or, if the bankruptcy case is still open, you
can ask the bankruptcy court to determine whether the debt is
discharged. If you want the bankruptcy court to make that
determination and the bankruptcy case is closed, you will have to file
a motion asking that the case be reopened. The bankruptcy court may or
may not grant that request. |
|
| 4. |
|
Amending the Schedules and
Matrix: If your bankruptcy case is ever reopened, especially to
administer assets (this rarely happens), you should file an amended
schedule of creditors and an amended matrix, listing the omitted
creditors. Make sure the creditor gets notice of the reopening of the
case. Some bankruptcy courts will permit you to reopen the case just
to list the omitted creditor. |
|
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