Discharging Creditors Not Notified of a No-Assets Bankruptcy

[yoli]

So if the Chapter 7 BK was a no asset case and discharged, I don't have to add creditors if they were honestly just omitted? I was told I had to reopen the case. Is it different depending on what state you reside in?

[Mr. Knowitall]

If the debtors won't respect the bankruptcy court's discharge, or are claiming that there's a reason they weren't subject to discharge, you may well have to reopen your case.

Although where there's no dispute as to the dischargeability of a debt from a creditor inadvertently omitted from a zero-assets Chapter 7 filing, the creditor should accept the ruling, sometimes they don't know any better and sometimes they prefer to make you jump through hoops.

[Betty3]

If the issue is a forgotten creditor and your Chapter 7 was a "no asset" case, it might not be necessary to amend. While some courts disagree, in most circuits, it is not necessary to reopen and amend a petition to add a creditor in a no-asset Chapter 7 case. The majority of courts take the position that, unless creditors were required to file a proof of claim (as in an "asset" case), an unlisted creditor has not been prejudiced by not receiving a notice, or not receiving it in time to file a proof of claim. In these situations, the courts believe it to be futile to require debtors to amend, and the debt is to be considered discharged.