Michigan bankruptcy clients forget creditors all the time. Or, don’t even know they
owe some body money, especially medical bills, which often show up months later.
Some people panic: I already had my bankruptcy hearing, is it too late? How much
trouble am I in? Will I have to pay this bill?
image credit: dreamstime
Bankruptcy law gives the debtor, that is you, the person filing the bankruptcy, the
right to amend the schedules any time so long as the case is open.
Now, you have to give the creditor notice when you file the amendment adding the
creditor, and, in Michigan Chapter 7 bankruptcy cases, the creditor gets time to
object to the discharge, as they would if they had received timely notice.
What if you already received your Chapter 7 discharge?
Michigan is in the 6th Circuit, which, like most circuits, allows a case to be
re-opened to add a creditor. However, the 6th Circuit ruled that there is no reason
to re-open a case to add a creditor if (1) it was a no asset case unless (2) the creditor,
now that it knows about the bankruptcy, wants to object to the discharge of the
Michigan allows the use of the Federal bankruptcy exemptions, so most cases are
So, in a Chapter 7 bankruptcy case, you can add an omitted creditor any time as
long as your case is open. The creditor will have a chance to file a proof of claim, if
trustee has collected assets, and a chance to object to the bankruptcy discharge.
In a Chapter bankruptcy 13 case, the same rules apply, up to the deadline to file a claim.
That is, if the creditor had actual notice of the claim. That way, there is no prejudice, as
we say in the law biz, no harm to a creditor who finds out in time to file a claim and get paid
as Chapter 13s are payment plans.
If no notice to the creditor in time to file a claim, no discharge of that debt.
A number of other bankruptcy experts across the country are playing the “alphabet game”,
writing on topics that begin with each letter of the alphabet. The other topic that
begin with the letter “O” are listed below.
Omaha and Lincoln, Nebraska Bankruptcy Attorney, Ryan D. Caldwell
Objection to Confirmation Livonia , Behrmann
Own New York Bankruptcy Lawyer, Jay S. Fleischman
Bay Area Bankruptcy Lawyer Cathy Moran
Suburban Philly Bankruptcy Lawyer, Chris Carr
Metro Richmond Consumer and Bankruptcy Attorney, Mitchell Goldstein
Hilo Bankruptcy Attorney, Stuart T. Ing
O Is For Organize Marin County CA attorney Catherine Eranthe
Organization: Do You Need It In Your Bankruptcy? Mark Markus LA bankruptcy attorney