Anyone forgotten to list a creditor?

[twinsplus14me]

I'm scared to death I'm going to forget a creditor. There are several that are not on my credit report. So, I've got all the statements ( I think) and am trying to include every single one for any amt. But, odds are with my luck I'll forget to include something/someone.

[HHM]

If you do forget one, it is not the end of the world. Don't lose too much sleep over it. If you intentionally leave off a creditor, that is a problem; but if, after due diligence, you can't find or forget a creditor, there is no negative ramification. The debt still gets discharged. The only possible hassle is that you will have to convince some collection agency down the road that the debt was discharged.

[Flamingo]

I'm scared to death I'm going to forget a creditor. There are several that are not on my credit report. So, I've got all the statements ( I think) and am trying to include every single one for any amt. But, odds are with my luck I'll forget to include something/someone.

Go back through your checking account ledger or whatever ledger you keep as to payments made and check the names against your statements. If you pay bills online through your bank you can also call up past statements to see what has been paid to whom, names, etc. That is one way to ensure you won't forget anyone; another is to always hold receipts for at least three years for any bills paid and longer if you need those receipts for any future use as to a warranty, tax filing, etc. That way if you ever need something, it's around. Shred after holding for that period of time. Note also that all creditors do not report to all three credit reporting agencies so check all three of your reports.

[PaKettle]

If you do forget one, it is not the end of the world. Don't lose too much sleep over it. If you intentionally leave off a creditor, that is a problem; but if, after due diligence, you can't find or forget a creditor, there is no negative ramification. The debt still gets discharged. The only possible hassle is that you will have to convince some collection agency down the road that the debt was discharged.

HHM, I'm confused about this rule, maybe you can clarify it for me.

First of all, is this a Federal rule for all bankruptcies or does it vary from state to state (that if you forget to list something it is still discharged)?

Secondly, in the case that this rule does apply, it seems very unfair to me, to the creditor. Because that creditor would not get a chance to object, right? If they were not listed? Seems that any creditor should still get a chance to object, no? And wouldn't it be easy enough for someone to kind of "forget on purpose" not to list a certain creditor? How could a creditor prove the filer didn't list it on purpose?

[HHM]

PaKettle:

BK is federal, so it applies in all states. Assuming the debt is dischargeable in the first place, then the debt is discharged regardless if the debt is listed. As you pointed out, the issue is "notice" of the BK. The creditor is not without a remedy, if the creditor believes they have been disadvantaged in some way, once they find out about the Bk, they can simply file a motion to re-open the the BK case, and that motion would likely be granted if that debtor was never notified of the BK.

[biotechsolution]

PaKettle. In most districts the court won't allow the debtor to reopen their bk to include a creditor if the case was a no-asset case. The reasoning being that it no damage was done to the creditor by not being notified because the case was a no-asset case being that the creditor would have received nothing anyway. There was no reason to reopen the bk, the debt was discharged anyway.

If your case is a no-asset case you don't have to worry about leaving a credtor off.

[PaKettle]

Thanks for the clarification.

I'm not worried about this in my case, I'm just interested in learning how it works.

So, if there was a creditor who the debtor had not listed, and who the debtor had taken, say, a cash advance of $10k or bought a $10k home entertainment system 3 months before filing, THAT creditor could probably re-open the case and file an objection, right?

And yeah, I know BK is Federal, however they seem to be many rules or policies that depend on not only the state but also the district in which one files.

[HHM]

Thanks for the clarification.

I'm not worried about this in my case, I'm just interested in learning how it works.

So, if there was a creditor who the debtor had not listed, and who the debtor had taken, say, a cash advance of $10k or bought a $10k home entertainment system 3 months before filing, THAT creditor could probably re-open the case and file an objection, right?

And yeah, I know BK is Federal, however they seem to be many rules or policies that depend on not only the state but also the district in which one files.

Yes, if a debtor was not informed of the BK and they have a good faith reason for re-opening the case, the court would likely grant the motion.

The only aspects of STATE law that apply to BK are (1) Exemptions and (2) Fraudulent transfers. Other than those two areas, the bulk of BK is governed by federal law and applies equally in ALL states.

One reason you may think there is huge variation is in the fact the local practices may vary. But again, most of those variations are based on State Exemption law. A state with a hefty cash exemption will allow a debtor to exempt their tax refund whereas a state without one, the debtor will have to surrender it. For the most part, aside from state exemption law, BK's are fairly uniform across the country.

[2muchstress]

after discharged: i had 2 visa accts through my own bank (where i keep checking acct) that was still open and running... i used one card hoping i can keep this visa card. but later they put it on 'hold' so i wasnt able to use it. they wanted me to give them bk# so they could close it.
later when i gave it, they closed but asked that i pay remaining balance. ...obviously this visa wasnt in my bk list.
i paid the balance because after all it's where i keep my checking, and saving acct now.