When you file for a Chapter 7 bankruptcy the bankruptcy courts want to see a full picture of your current finances, including all your liabilities, assets, and a full list of all your creditors. This list of creditors includes everything from your mortgage holder, to credit card companies, to Aunt Bethel who loaned you a few hundred dollars. In order to capture all this information, the bankruptcy forms include Schedules E, D, and F, with different classes of creditors being listed on each schedule. Bankruptcy courts in California also require a creditor mailing matrix, which is essentially just a list of all your creditors and their contact information so that the courts can inform them that you have filed for bankruptcy.
So what happens if you leave off a creditor by mistake?
Can you add a creditor in Chapter 7 bankruptcy after filing?
The answer is yes, but leaving off a creditor can complicate your bankruptcy process.
First and foremost, you sign your bankruptcy petition under penalty of perjury; therefore, if you knowingly leave a creditor off, it could be detrimental. So please make sure you don’t do this.
The big repercussion from not adding a creditor in a Sacramento bankruptcy filing is that the creditor is not notified. If the creditor is made aware of your bankruptcy but isn’t included on the mailing matrix they can be proactive a file a proof of claim that basically adds them to the bankruptcy assuming they have a valid claim to a debt.
On the debtor’s side of things, if you haven’t received a discharge, there is an option to amend your case which will allow you to add the creditor you missed. If you have already received a discharge then you must file a motion to reopen the case then go and add the omitted creditor. This will only work if the bankruptcy court approves of the amendment.
When first filling out Schedules E, D, and F, as well as the mailing matrix, it is extremely important to go through the list with a fine tooth comb and ensure that every creditor is properly listed. If not, you risk not having the debt discharged, or the added time and expense of having to go back to the courts for amendments or motions. Please contact an experienced Roseville bankruptcy attorney before you file to go over everything that needs to be included with your bankruptcy petition.
