Filing for bankruptcy is often a necessary yet scary and confusing process for debtors. No one plans to accumulate so much debt that they can’t pay it back, but things happen. While you may not want to file bankruptcy, it is often the best choice if you are struggling to get by.
Though filing for bankruptcy is a challenging process, it will go a lot smoother if you look into hiring an attorney to help. Working with a lawyer will help ensure you get the most benefit from your case, and they can answer any questions and help alleviate your concerns.
If for some reason you realize that you forgot to add a creditor after you have already filed, your attorney can help you understand your options. Generally, adding debts after a bankruptcy is filed is allowed so long as the debt existed before you filed and it is added within a certain amount of time. However, the situation can vary depending on whether you filed a Chapter 7 or a Chapter 13 bankruptcy.
If you are looking to add a creditor from a debt incurred prior to filing bankruptcy, it will be considered a pre-petition debt. It is not uncommon for debtors filing bankruptcy to forget to add a creditor when filing. So if this happens, it is not typically a problem as long as you present the missed creditor to your bankruptcy attorney as soon as you realize it was missed. Though pre-petition debts can be added after filing in most cases, you will likely have to pay an amendment fee.
Post-Petition Debts
Post-petition debts are those that are incurred after bankruptcy has been filed. While most post-petition debts are not eligible to be added after you have already filed, there are some situations where it may be allowed, including:
If you convert from Chapter 13 to Chapter 7, debts incurred after the Chapter 13 filing and before the conversion date can be added to the Chapter 7 bankruptcy.
If your initial Chapter 13 case gets dismissed and you try to file again, you will be able to add any new debts that are incurred to the new petition.
If you file a Chapter 13 after a Chapter 7 discharge, you can add any new debts incurred after the initial filing to the new petition.
In some situations, debtors may be interested in adding secured debts to their bankruptcy after filing, and some secured debts are seen as both pre-petition and post-petition. Mortgages and car loans, for example, are both pre and post-petition debts because they were incurred prior to the petition but continue to increase after you file.
Adding secured debts like this after you file is possible but can make things more difficult. Before adding any new debts to your petition, it is always best to consult with your attorney to discuss your options and understand how it will affect your case.
Adding a Creditor After a Chapter 7 Filing
With Chapter 7 bankruptcies, if you want to add a creditor after you have already filed, you will need to notify your attorney as soon as possible. Only debts that are incurred before filing can be added to your Chapter 7 bankruptcy. When you meet with your bankruptcy attorney, make sure you bring financial information on all of your debts and creditors, so you don’t have to worry about adding one after you file. If you do miss one, you will have to pay a fee to have your petition amended. If a creditor is not listed in your Chapter 7 and your filing is declared a “no asset” case, even omitted creditors are considered discharged in most jurisdictions. However, omitted creditors can survive a Chapter 7 filing if it is declared an “asset” case.
Adding a Creditor After a Chapter 13 Filing
Pre-petition debts can also be added to Chapter 13 bankruptcy after you file, but again, you will want to notify your attorney of the missed creditor as soon as possible. Adding debts to Chapter 13 is possible, but if certain deadlines have come and gone in the case, a debt can be found to be non-dischargeable.
How Sawin & Shea, LLC Can Help
At Sawin & Shea, we believe in providing compassionate and understanding representation to those struggling with debt and looking to file bankruptcy. If you file and later realize you forgot a creditor, we will work with you to amend your petition to ensure all eligible debts are included. Our attorneys have experience in bankruptcy cases and can help walk you through the process every step of the way. We can even offer guidance after your bankruptcy case has ended.
Contact us at 317-759-1483 or send us an email for a free consultation today!
On the debtor's side of things, if you haven't received a discharge, there is an option to amend your case which will allow you to add the creditor you missed. If you have already received a discharge then you must file a motion to reopen the case then go and add the omitted creditor.
Judd, in a no-asset Chapter 7 case, debt to an omitted creditor is deemed discharged, and the debtor is not obligated to notify the creditor. The logic is that because there are no eligible funds available for distribution, amending or reopening the bankruptcy case is essentially worthless.
11 U.S.C. § 524(f). An individual receives a discharge for most of his or her debts in a chapter 7 bankruptcy case. A creditor may no longer initiate or continue any legal or other action against the debtor to collect a discharged debt.
A) Voluntary Dismissal – A debtor can file a motion to voluntarily dismiss the bankruptcy case, but the court may or may not approve the dismissal depending upon the chapter number of the bankruptcy case and the prior history of the debtor in bankruptcy.
When the bankruptcy court denies your discharge in a Chapter 7 case, you remain responsible for paying back all your debts. Denial of your Chapter 7 discharge doesn't end the case, though. The Chapter 7 trustee will still gather and liquidate any non-exempt assets; all you lose is your fresh start free of those debts.
On the debtor's side of things, if you haven't received a discharge, there is an option to amend your case which will allow you to add the creditor you missed. If you have already received a discharge then you must file a motion to reopen the case then go and add the omitted creditor.
If a debtor forgets to list a creditor on their bankruptcy papers or carelessly misstates a creditor's name or address, then the creditor will likely not be duly notified of the bankruptcy. In that situation, the debt will most likely survive the bankruptcy.
Or somewhat more accurately, Chapter 13 can give you more power over and flexibility with certain kinds of creditors, and if you have non-exempt assets. However, if you do not have those kinds of debt or assets, or not much in terms of tangible assets, then Chapter 7 would likely be the faster and easier option.
Most bankruptcy cases pass through the bankruptcy process with little objection by creditors. Because the bankruptcy system is encoded into U.S. law and companies can prepare for some debts to discharge through it, creditors usually accept discharge and generally have little standing to contest it.
Once you file for bankruptcy, you cannot simply withdraw your bankruptcy petition as if you never filed it in the first place. The bankruptcy stays on your record. However, you can withdraw from the bankruptcy process by obtaining a dismissal.
If you decide to pursue a Chapter 7 bankruptcy, then it will generally take 10 years to dissolve from your credit reports. A bankruptcy trustee is appointed to your case and will liquidate all of your nonexempt assets to pay the creditors. Once these assets are sold off, any debt that still remains will be discharged.
Additionally, under Chapter 7 bankruptcy rules, a debtor may be considered ineligible under the following circ*mstances: The debtor failed to attend credit counseling. Their income, expenses, and debt would allow for a Chapter 13 filing. The debtor attempted to defraud creditors or the bankruptcy court.
Creditors do not “get mad” in a personal sense, but they may be disappointed as bankruptcy means they may not receive the full repayment of debts owed. However, creditors understand bankruptcy is a legal process designed to provide relief to debtors in financial distress.
The court may deny a chapter 7 discharge for any of the reasons described in section 727(a) of the Bankruptcy Code, including failure to provide requested tax documents; failure to complete a course on personal financial management; transfer or concealment of property with intent to hinder, delay, or defraud creditors; ...
The truth is that you must list all of your creditors—even friends and family members you don't want to go unpaid. In this article, you'll learn why you must list all debts in bankruptcy, how you'll list your debts in the bankruptcy petition, and the things that can go wrong if you leave out a debt.
A Chapter 7 bankruptcy will generally discharge unsecured debts, including credit card debt, unsecured personal loans, medical bills and payday loans. The court discharges all of these remaining eligible debts at the end of the bankruptcy process, generally about four to six months after you start.
One of the first requirements in any bankruptcy proceeding is that you furnish the court with a list of all your creditors. The list must include all credit cards, including those with no balances.
Introduction: My name is Carlyn Walter, I am a lively, glamorous, healthy, clean, powerful, calm, combative person who loves writing and wants to share my knowledge and understanding with you.
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