Debts not listed in BK7 -valid?

WOW.

Interesting little catch 22 ya got here Poochie.

Let me think here.

 

You are totally responsible for all debts you include in your filing. If you leave one or two out and your discharged. That creditor can come after you and their is nothing you can do.

 

It might depend on the state. I remember my attorney telling me that New Jersey state law would include debts even if you forget to list them.

 

BULL#$%@ !

If Poochie's case is a no asset case, in most jurisdictions there is nothing he/she has to do but send em' a copy of the discharge. The creditor loses nothing by not be listed - there were no assets to get a piece of. The bankruptcy courts don't want to be cluttered up with people re-openiong cases to discharge small debts that were dischargeble.

Do a search on "No Asset" and you should be able to find the particulars.

 

If it was a NO ASSET Ch. 7 BK. then usually the trustee will include the unlisted creditors since there was no money paid out to anyone, and it makes no difference whether they were listed or not.

This is how it is handled in New York's Southern District!

 

Re: Re: Debts not listed in BK7 -va

You haven't got a clue Cannoda. You need to educate yourself before you just post some random mess like you did.

A discharge is a final disposition. THE END.

It is possible the individual can still send their discharge to the creditor. However, that creditor can still go to court, get a judgment and execute the that judgment. The person is barred from filing for another Chapter 7 for 6 years.

 

Re: Re: Debts not listed in BK7 -va

You have to petition the bankruptcy court to re-open the case, and amend the omitted creditor (s) to the schedules. It is not "automatic"

As I said before this happens frequently in the Southern District of NY.

I have heard some districts even list all Ch. 7 cases as "no asset" unless the trustee determines that a dividend will be paid out

 

Re: Re: Debts not listed in BK7 -va

Poochie:
Here is some info published by the Bankruptcy Court for the Massachusetts District:

Can creditors be added after the discharge is issued?

Yes, you may add creditors at any time during the pendency of the case. You must file and serve a motion to add creditors and pay the required filing fee.


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. Donâ??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 oneâ??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 didnâ??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.

http://www.mab.uscourts.gov/faq.htm#How can I file an emergency pleading after hours

 

If the left out debts are small could you pay them for deletion maybe? I would be very afraid of discharge papers falling into enemy hands.

 

Re: Re: Re: Debts not listed in BK7 -va

In some jurisdictions, non-listed debts are considered subject to the discharge order in a no-asset case regardless of whether they were listed.

If a creditor tries to get a judgement, the debtor has two options.

1. If they are in a bankruptcy court jurisdiction that has ruled that all debts are automatically discharged in a no-asset case, they can file a motion to dismiss based upon the discharge and cite the bankruptcy case law.

2. Re-open the bankruptcy case and add them.

If a judgment has already been obtained, the motion would be a motion to vacate.

However, I don't think all this is necessary. Most creditors or CAs will fold upon receiving a copy of the discharge. It's simply not worth the risk to a CA or creditor to ignore the discharge order unless we are talking about a very large balance.

 

The discharge is public record. While I would never send it to a CRA (they're too lazy or cheap to get them on their own), this is a document that is automatically sent to all listed creditors and CAs as part of the bankruptcy court process.

 

Re: Re: Debts not listed in BK7 -valid?

I don't think the CA can put it on chexsystems - I think the original payee or the bank has to do that.

It's only $31 and I don't see them going through the effort of dealing with the paperwork for a pfd for that small an amount. But I do think that might use your fear of them forwarding your bankruptcy papers to the cra to get you to pay up. No way would I bring up "not sending the bankruptcy papers to the cras." it. Its something that they are highly unlikely to do in the first place - the cras never ask anyone for proof of negative info about a consumer.

I would beat em up with the bankruptcy discharge and threaten them with contempt proceedings in bankruptcy court if they didn't pick up their ball and go home. I can't see them taking the risk or dealing with the hassle over $31. A successful motion for contempt would end up with them paying your attorney, their attorney amd any sanctions ordered by the court. They would be real stupid to press the matter after they receive a copy of the discharge CMRR.

You could wait six months or a year and then deal with the tradeline (not mine, of course).