I Forgot to List a Creditor in my Chapter 7 Bankruptcy...

Occasionally my office will receive a phone call from a former Chapter 7 client about a debt that was not listed on their bankruptcy schedules. The failure to list the creditor was never intentional, and often our client did not even know the debt existed. The client is concerned because they have just gone through the bankruptcy process and now they are worried that they are right back in debt. Can the case be reopened and the creditor included? No, not really. But this probably is not a big deal.

The vast majority of Chapter 7 cases are no asset cases. This means that there were no assets available to be paid to creditors. Did you have to turn any money or property over to the Trustee? If not, your case was most likely a no asset case. Our former Chief Bankruptcy Judge in the Eastern District of Missouri would not allow us to reopen these no asset Chapter 7 cases to include creditors. His reasoning was no harm, no foul. None of your other creditors received any assets, so the creditor you forgot to list was not harmed in any way. There are several circuits and districts that have published opinions that say as much.

Bottom line, if you receive a call from a creditor that you forgot to list on your bankruptcy schedules and the debt was incurred prior to the date your case was filed, you will not be obligated to pay that debt if your case was a no asset Chapter 7. Inform the creditor of your filing, and you will be fine to carry on your new life with the peace of mind that filing for bankruptcy can give you.