You can file for bankruptcy without an attorney and represent yourself in your upcoming legal proceedings (i.e., pro se), but it is generally discouraged. We say this not from a business standpoint, but simply as a team that is looking out for your best interests. This is because the last thing we want is for you to make a seemingly frivolous mistake that ultimately jeopardizes your entire bankruptcy case. An example of this may be unintentionally missing a creditor on your bankruptcy list. With that being said, please follow along to find out what happens if you forget to list a creditor in bankruptcy and how a proficient Rockland County bankruptcy attorney at The Law Offices of Allen A. Kolber, Esq., P.C., can help you sidestep this potential issue.
Why do I have to list my creditors in my bankruptcy filing?
For starters, you must supplement your initial bankruptcy petition with varying schedules that disclose the creditors with whom you have an outstanding debt. Namely, Schedule D is meant to list creditors with secured claims, in that they have a lien or security interest in your property. The most common examples of these creditors are your mortgage lender and car loan provider. Then, Schedule E/F is for creditors with unsecured claims, such as credit card companies and medical providers.
With that being said, you need to list every last creditor in your bankruptcy filing because you must ensure that all potentially affected parties are informed of your pending bankruptcy case. This is so everyone is given a fair and equal opportunity to file a proof of claim or object to the bankruptcy discharge. From here, the New York State Bankruptcy Court and your appointed bankruptcy trustee will know how to proceed accordingly.
What happens if I forget to list a creditor in bankruptcy?
The degree of consequence for forgetting to list a creditor may depend on the type of bankruptcy case you have. For one, say you have a Chapter 7 no-asset case, in which you have no non-exempt assets that can be sold to pay back your outstanding creditors. In this case, your unlisted debt may still be discharged at your case’s close without causing any harm or penalty.
Alternatively, say you have a Chapter 7 asset case, in which you do have non-exempt assets that your appointed bankruptcy trustee can take to liquidate and distribute amongst your creditors. Well, this means that your unlisted debt may be overlooked for discharge. Further, the associated creditor may still pursue collection activities at your case’s close.
If this was purely unintentional, you may want to reopen your closed bankruptcy case to amend the schedule and add the missing creditor. This may require a separate motion, supplemental documentation, and mandatory filing fee. However, if the New York State Bankruptcy Court suspects this action was intentional, you may be up against far worse legal troubles.
We can sympathize with how daunting this whole legal battle may be for you. Well, lucky for you, the team at The Law Offices of Allen A. Kolber, Esq., P.C., has successfully gone through this countless times before. So please, retain the services of a talented Rockland County bankruptcy attorney today.
