Creditor Omission From Petition
Failing to add a certain creditor to a bankruptcy petition is a fairly common occurrence. The key is understanding what steps you need to take following the omission. This really depends on each situation and how far along you are in the process. For folks that have filed for bankruptcy under Chap 13, you’ll want to let your bankruptcy lawyer know so they can cure the defect with an amended filing. People that have made this mistake under a Chap 7 filing who have not yet gone through a 341 hearing can also have their bankruptcy attorney fix the filing to add the omitted creditor.
Whether you are in the process of considering filing or your bankruptcy case has already been closed, you may still be able to discharge the debt of an omitted creditor. One way to avoid forgetting to add a creditor, or to find additional creditors, is to review your full credit report. Your credit report will list all creditors that are reporting on you. When a creditor contacts you about collecting a debt after your bankruptcy case has been closed, you should notify them that you filed and provide them with important information including filing date and case number. Debts that accrued prior to your filing may be eligible for discharge. However, there are some instances where the debt is not eligible under the bankruptcy code.
One of the most commonly forgotten debts are those associated with medical treatment. If the medical treatment from which the debt arose were provided prior to your bankruptcy filing, that debt may still be dischargeagble. While you may still have to litigate these debts in front of a judge, typically, upon providing your bankruptcy filing documents, the creditor will likely not pursue the debt.
No matter where you are in the bankruptcy filing process, if it comes to your attention that you may have forgotten a creditor, your best option is to contact your bankruptcy attorney. Depending on your situation, you may want to contact another Michigan bankruptcy law firm. Either way, you don’t want to assume that the debt has been taken care of without consulting with an experienced bankruptcy professional.
Getting help from a Michigan bankruptcy law firm is your best option to learn what steps you need to take when you have debt issues. A bankruptcy legal professional can help you understand which options are available to you.
Bankruptcy can be an effective means of eliminating debt. Often times, it is far more effective than debt consolidation or debt settlement/forgiveness. Debt consolidation relies on hopes that creditors will join in. If you are searching for a bankruptcy attorney in Michigan, get a free consultation with bankruptcy lawyers in Michigan near you.