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This blog stems from a Chapter 7 client who asked “What happens if a creditor is not listed?” It is Sadek and Coopers’ common practice that prior to a bankruptcy filing we review a 3 source credit report and collect all bills from our clients to ensure all creditors are listed on a Bankruptcy Petiion. However, there are times that a creditor is not listed due to the debt not being reported, common with medical debt or the debt has not yet appeared or continued to appear on a credit report. The following case law exerpt from Judd v. Wolf, US 3rd Cir., No. 95-5141, 1995, states that opening a bankruptcy for the purpose of adding an omitted creditor is generally unnecessary, see below:

“An omitted creditor who would not have received anything even if he had been originally scheduled, has not been harmed by omission from the bankrupt’s schedules and the lack of notice to file a proof of claim.   Thus, in a no-asset Chapter 7 case where no bar date has been set, we conclude that there would be no purpose served by reopening a case to add an omitted creditor to the bankrupt’s schedules.”

In conclusion, if a creditor in a Chapter 7 Bankruptcy case is unintentionally omitted and the debt is deemed dischargeable, then the Petitioner would be eleigible for the discharge of the omitted creditor.

If there are any general questions or topics you would like information about relating to bankruptcy law in the Eastern Pennsylvania region, you may contact the Bankruptcy Lawyers at Sadek & Cooper at 215-545-0008 or email [email protected] Thank you.