Newly Discovered Creditors – Sometimes, after your bankruptcy case has closed, you discover that you inadvertently left off a creditor on your schedule. (Newly Discovered Creditors) What happens next? If your case is still open you can amend your schedules adding the creditor. But what happens if you don’t discover the creditor until after your bankruptcy closes? It happens all the time, you lose track of a creditor. The chances are great that the debt will still be considered discharged.
If your case is a no-asset case (meaning all your property was exempt), the debt is considered discharged unless by leaving out the Creditor , the Creditor lost the opportunity to contest the discharge on the ground that the debt was caused by a fraudulent or embezzling conduct, or by a willful and malicious act (such as assault). It is generally possible to reopen the bankruptcy and let the bankruptcy Judge rule on whether the debt is, in fact, dischargeable.
If your case is an asset case (meaning some of your property was distributed to the unsecured creditors), the answer is more difficult and you should contact a knowledgeable attorney. Your nonexempt assets were already distributed to your other unsecured creditors, so the omitted Creditor would be unfairly discriminated against if the debt was discharged.
If you have left off a creditor on your bankruptcy petition, and the newly discovered creditors debt was a large one you may want to discuss with a lawyer re-opening your case.
Newly Discovered Creditors – For more information about Bankruptcy Laws – and what happens if you leave creditors off of your schedules after your case closes, contact the Remboldt Law Firm at 404-348-4081. We offer a Free consultation with an attorney at the Remboldt Law Firm, LLC and an appointment can be scheduled by calling 404-348-4081. We offer weekend and evening hours as well as payment plans.