Some bankruptcy cases are so large that it is hard to gather all of the necessary documents for filing, and as a result there may be a lender or two that is not included on the filing. When this happens it leaves the debtor, and creditor, wondering the status of the debt. Is the debt still owed, or will the discharge cover that debt too and mean the debtor no longer has to make payments? Being able to eliminate date and the monthly payments that go along with it is the main goal of filing bankruptcy. So if you end up still owing some of your debts, it can be frustrating to say the least.
The answer as to what happens to debts that are left off of a bankruptcy depends on a couple of things; they are:
- Did you file a Chapter 7 or a Chapter 13?
- What would the creditor have received if they had been listed in the bankruptcy case and received notice of the proceeding?
The answers to these questions help determine what happens to forgotten (or unscheduled debt) debt. If the case was a Chapter 7 where no money was available to pay creditors, the creditor has suffered no real harm and the debt will likely be considered discharged. On the other hand, if there were assets (either in a Chapter 13 or a Chapter 7), the creditor may be able to argue they missed out on their share. If that is the case, it is possible that your case may be reopened to administer that debt. In order to avoid this from happening to you, take the time to gather all of your papers before having your case prepared. If your debt load is overwhelming large, obtaining a copy of your credit report can help. Your credit report will list out all of your creditors, and this will help you to double check that you have not forgotten to include any in your case. You can also keep copies of the monthly statements you receive, or take down creditor information from any collection calls you are receiving.
If you need help with your finances, call our office. We can offer solutions, legal and practical, that meet your needs. Call a Plantation, Florida debt relief attorney today for more information.