Many folks rely on their credit reports when filing Chapter 7 bankruptcy, so they don’t miss listing a creditor. Because, all bankruptcy chapters include ALL debts. And, being under oath in a federal court, which all bankruptcy courts are, good idea to tell the whole truth.
Why would you want to leave off a debt anyway? You can pay anyone you want; just because you list a creditor on your Chapter 7 bankruptcy schedules does NOT mean that you will not pay them.
Do you have insurance that pays your? Me neither.
Do you have insurance that covers your medical bills? Yeah, me too.
So, should these bills look the same on our credit reports?
I don’t know about you, but my experience is, medical bills goes to my insurance company.
Paper flies around somewhere, I get some I can’t read, and, months later I get a bill from some entity I never heard of that had something to do with some test or something.
It says something like, cost, $875.00, Blue Cross rate, $467.33, insurance paid $112.45, your balance is: $246.86.
Yeah, I know, it does not add up. Even if you can figure out how to read them.
It goes on to say: This bill is overdue!!!
If not paid in 90 seconds, this will go on your credit report and you will never have any grandchildren!!!
Or words to that effect.
Now, this does not happen with credit cards, and, we all know that.
So, you want to be sure your creditors get notice of you filing Chapter 7 bankruptcy, so that they stop bothering you AND the debt gets discharged.
But what happens if you cannot find, or never even knew about, that medical bill, what can you put on your bankruptcy papers? Which you CANNOT find on your credit report?
If you file bankruptcy in Michigan, which is in the, you are discharged from a debt NOT listed on your bankruptcy, IF:
1. it were a no asset case, that is, the Chapter 7 bankruptcy trustee recovered nothing for your creditors, and
2. they still have a chance to file a complaint under the Bankruptcy Code that your debt should be excepted from discharge.
Most Chapter 7 bankruptcy cases in Michigan are no asset cases, and that medical bill will be discharged even though you did not list it.
Of course, tell your bankruptcy lawyer about ALL your debts, even ones you find after the bankruptcy case is filed.