The Forgotten Creditor
After carefully working with your client to complete his or her bankruptcy filing, you breathe a sigh of relief. Nice to have another petition filed and off your desk - until you receive notice that your client forgot to give you the name of a creditor to include in the bankruptcy case. Now what?
11 U.S.C Section 523(a) (3) states that a debt not listed in a debtor's schedule is not discharged if the creditor has a claim for the following:
- fraud
- theft
- willful or malicious act against the person filing bankruptcy
- the creditor would have could have received funds from the bankruptcy estate
Assuming that you have none of the above issues with your client, one thing you can do to curb the problem of a forgotten creditor is to have your client pull a recent credit report prior to filing his or her bankruptcy petition. If your client is filing a joint petition with his or her spouse, both parties should give you copies of their most recent individual credit reports.
However, if a creditor is missing, you must file an amendment to add the creditor to your schedules with the U.S. Bankruptcy Court. You can obtain the form from the clerk's office within your jurisdiction. Keep in mind that there is usually a fee associated with the amendment.
To curtail the dilemma of dealing with a forgotten creditor during or after a bankruptcy filing, just remember that there are certain steps you can take to make sure your client has a complete list of all debts owed. Due diligence in this area will mean less stress for you and your client.
