what if my lawyer get an creditor address wrong on chapter 7

by Albina Stehr 5 min read

You should prepare an amended Schedule D,E, or F (depending on which schedule the incorrect address appears) listing the corrected address for that creditor. The Bankruptcy Clerk will probably charge you an amendment fee of under $20.00 for the amendment.

Full Answer

What happens to my debt when I file Chapter 7?

Apr 03, 2013 · If an address is wrong, the notice will be returned to the debtor's attorney, or if the debtor is representing himself, to the debtor. The case of In Re Beezley addresses the issue of an unlisted debt being discharged & finding this case online isn't very hard.

Can creditors object to my Chapter 7 case?

There are two kinds of Chapter 7 bankruptcies: those with assets, and those without (a “no asset” case). In an asset case, the debtor owns property or something of value which isn’t exempt so the trustee will receive something to pay to the unsecured creditors. In the more common no asset case, there’s nothing for the trustee to get ...

What is a Chapter 7 bankruptcy?

You must report a name, an address, and an estimate of the amount owed. But there is a safety valve in the Bankruptcy Code for the honest Chapter 7 bankruptcy debtor who innocently omits a creditor’s name and address from the bankruptcy petition paperwork filed with the court.

Do creditors get paid in Chapter 7?

Bankruptcy Code Section 523 (a) (2) is also used by credit card companies to object to accounts where you took out cash advances within 70 days of filing, or made significant credit card purchase – also known as credit card binge debts – within 3 months of filing. Bankruptcy Code Section 523 (a) (6) – debts arising from wilful and ...

What happens if a creditor is not listed in Chapter 7?

Any debt you fail to list in an asset case won't be discharged. If, however, yours is a no-asset Chapter 7 bankruptcy (there's no money to repay creditors), the debt still might be discharged.

What are the rights of a creditor when the debtor doesn't pay his her debts?

If the debtor still refuses to pay the unsecured debt, the creditor can file a lawsuit against the debtor. Once a court grants judgment in favor of the creditor, it can usually take money from the debtor's bank account or garnish the debtor's wages.May 27, 2020

How long before a debt becomes uncollectible?

The debt will likely fall off of your credit report after seven years. In some states, the statute of limitations could last longer, so make a note of the start date as soon as you can.Jan 7, 2022

How do you beat a debt collector in court?

How to Beat a Debt Collector in CourtRespond promptly to the lawsuit. ... Challenge the debt collector's right to sue. ... Bring up the burden of proof. ... Review the statute of limitations. ... File a countersuit. ... Decide if it's time to file bankruptcy. ... What is SoloSuit? ... How to answer a summons for debt collection in your state.More items...•Sep 29, 2021

What happens to unsecured creditors in Chapter 7?

Most unsecured creditors are in a fairly precarious position in chapter 7 (or any bankruptcy), as it’s very possible that they will be unable to collect anything on the debt they are owed. Normally, unsecured creditors are entitled only to a portion of the liquidated assets equal to their share of the debt. For example, if a debtor owes $50,000 and the liquidation only produces $10,000, an unsecured creditor who was owed $10,000 would only receive $2,000.

What is Chapter 7 bankruptcy?

Chapter 7 is the simplest and most common chapter of the bankruptcy code that individuals and businesses use when filing for bankruptcy . In a chapter 7 bankruptcy, a bankrupt debtor’s assets are liquidated to pay off creditors, and any remaining eligible debts are discharged at the end of the proceeding. While chapter 7 bankruptcies can be relatively straightforward for the debtor, creditors seeking to receive payment on debts owed by the debtor may face several challenges in collecting what they are owed.

What debts are not discharged in bankruptcy?

If the debt was of a special classification of debt such as recent income taxes, child support, student or educational loans, criminal fines, alimony, or criminal restitution, then the debt would not be discharged even if it had been listed in the bankruptcy schedules. Most “Priority debts” and “non-dis chargeable debts” fall into these special classifications of debts that will not be discharged, reported in the schedules or not. Thus failure to list in the schedules a debt falling into one of these unique classifications of debt has no additional negative impact. It would not have been discharged even if it had been listed in the schedules then likewise it will not be discharged when not listed.

Why do people postpone filing for bankruptcy?

Many people unnecessarily postpone filing for Chapter 7 bankruptcy out of fear that they cannot find a name and address for every single creditor to whom money is owed. Similarly, other folks who have already filed a Chapter 7 case unnecessarily worry for years afterwards that a creditor may have been overlooked, ...

What would happen if Perle had provided a name and address for Fiero?

If Perle had provided a name and address for Fiero in Perle’s 2001 bankruptcy paperwork, and if Fiero missed the 60 day paperwork deadline to challenge the discharge back in 2001 for any reason, then Perle would have escaped from Fiero, free and clear, forever.

How many times did Perle appeal bankruptcy?

Perle appealed twice, and lost both times.

What is a bankruptcy schedule?

Each creditor’s name and mailing address is required to be written down in a specific place, called a “schedule”. Bankruptcy schedules include Schedule D (secured debts like car loans, HOA debts and mortgages), Schedule E (“priority” debts that include recent income taxes or business taxes and child support obligations), and Schedule F (unsecured debts such as credit cards, repossessions, lawsuit claims and medical bills).

Can a creditor collect a claim if they are not listed in bankruptcy?

However, if that creditor is not listed in the bankruptcy case schedules so that the creditor does not know about the bankruptcy case, then the right to collect the claim survives the bankruptcy discharge. Whether you have defalcation on your conscience or not, there is a big problem with failing to list fraudulent or intentional tort debts.

Do you report a name in bankruptcy?

The basic rule is that all creditors you know about and who can be located with reasonable effort must be reported in your bankruptcy paperwork. You must report a name, an address, and an estimate of the amount owed. But there is a safety valve in the Bankruptcy Code for the honest Chapter 7 bankruptcy debtor who innocently omits ...

Can Dischargeability Complaints be Settled?

In some cases where there are disputes of fact, the objecting creditor and the debtor (with the assistance of counsel) can negotiate a settlement of a dischargeability complaint.

Give Complete Disclosure to Your Lawyer

If you are concerned that a particular debt situation might give rise to a dischargeability complaint by all means tell me. The sooner I am aware of a potential problem the better advice I can give.

Jay K. Nixon

The key to still obtaining a discharge of this creditor's claim against you will probably involve getting them timely notice of the first meeting of creditors via any means which will enable to prove later that you have served them. This is in addition to formal amendments with the court.

Dorothy G Bunce

Sometimes a creditor will file a change of address with the post office & will receive the notice even though the address provided to the court is out of date. That would explain why the notice hasn't been returned to you. If you file an amendment to your schedules to correct the address, you will need to...

Benjamin Patrick Payne

You should prepare an amended Schedule D,E, or F (depending on which schedule the incorrect address appears) listing the corrected address for that creditor. The Bankruptcy Clerk will probably charge you an amendment fee of under $20.00 for the amendment.

Robert A. Stumpf

You could amend your petition, but sometimes when this happens I simply send that notice of meeting to the creditor's correct address with a receipt of mailing.