What Happens If I Forget To List A Debt In My Bankruptcy?

by Kevin Gipson, New Orleans Bankruptcy Attorney

August 26, 2009

When you file for bankruptcy you need to list all of the debts that you owe to you unsecured creditors.  The potential consequences if you knowingly fail to list creditors was discussed by Boston Bankruptcy attorney Nicholas Ortiz.

So what happens if you simply forget to list a debt that you owe to an unsecured creditor?

The answer depends on a number of issues.

Has your bankruptcy already been discharged?

If your bankruptcy is still pending and has not been discharged, your attorney can amend your bankruptcy to add the unsecured creditor.

If your bankruptcy has been discharged then the question becomes whether you had an asset or a no asset Chapter 7 bankruptcy.

A no asset bankruptcy is one where there are no assets available to liquidate to pay your unsecured creditors.

Generally speaking if you have a no asset bankruptcy it should not create a problem that an unsecured creditor was overlooked since that creditor would not have received any funds from your bankruptcy anyway.

However, if you have an asset bankruptcy, and a creditor did not get notice of the bankruptcy and therefore did not have an opportunity to file a claim to share in the assets, then it is possible that the creditor could have a legitimate complaint because it was prejudiced by not getting its portion of your nonexempt assets.

Whether a creditor would go to the cost and time to object due to its lacking notice of your bankruptcy is an issue for another day.

The point here is that it is important to make sure that you have listed all of your creditors so problems like this do not occur.

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I've been a consumer bankruptcy lawyer for nearly 25 years. Since that time I have helped many people resolve their financial problems. I have been practicing law since 1986 and I am licensed to practice in all state and federal courts in the State of Louisiana. Because I am a sole practitioner, you know that your debt matters are being handled by me personally. In addition to my work with consumers, I am also frequently asked to speak at local seminars on bankruptcy law. I am member of the following organizations: • Louisiana Bar Association • National Association of Consumer Bankruptcy Attorneys • Bankruptcy Law Network My office is located at: 3920 General DeGaulle Drive, New Orleans, LA 70114 Telephone: (504) 368-4101

Last modified: February 24, 2013