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WALLSTREETESQ
WALLSTREETESQ, Attorney
Category: Bankruptcy Law
Satisfied Customers: 17080
Experience:  14 years exp., CH 7 AND 13 Bankruptcy cases, AFL-CIO UNION PLUS, UFT NYSID AND ALL MAJOR UNIONS
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i did chapter 7in aug.2008, I forgot to add a creditor, my

Customer Question

i did chapter 7in aug.2008, I forgot to add a creditor, my attorney sent them a letter. The creditor was from a personal injury case that had settled in jan.2008. It was for pain medication thet had over charged me for. $1325. for 4 bottles of 120. My attorney argued with them. I had signed a lein. now they are threatening to take me to small claims court for "breach of contract". Can they do this?
Submitted: 7 years ago via Cornell Legal Info Institute.
Category: Bankruptcy Law
Expert:  WALLSTREETESQ replied 7 years ago.
As long as your discharge had no assets in which the trustee distributed it really doesn't have to be added.

Courts say that unlisted debt is discharged in no-asset cases. In a no-asset case, there will be nothing to divide and no reason to file a proof of claim. As a result, in no-asset cases the bankruptcy notice instructs creditors that they are not to file a proof of claim. Courts taking this position reason that since it will never be too late to file a proof of claim, a debt is not excepted from discharge because it has not been listed. Cases in which the courts reach this conclusion include: In re Madaj, 149 F.3d 467 (6th Cir. 1998); Judd v. Wolfe, 78 F.3d 110 (3rd Cir. 1996); Stone v. Caplan, 10 F.3d 285, 289, n. 13 (5th Cir.1994); and In re Beezley, 994 F.2d 1433 (9th Cir.1993).

YOUR ATTORNEY COULD ALSO FILE A MOTION TO REOPEN THE BANKRUPTCY CASE AND ADD THEM AS A CREDITOR, IF THE COURT AGREES THE DEBT WILL BE REMOVED.
Customer: replied 7 years ago.
so in other words, they can sue me?
Expert:  WALLSTREETESQ replied 7 years ago.
NO, THEY ARE CONSIDERED DISCHARGED BY LAW, AS IF THE CASE WAS A NO ASSET CASE YOU DON'T EVEN HAVE TO LIST THEM, BRING YOUR DISCHARGE LETTER TO THE COURT.
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Customer: replied 7 years ago.
is this even if I signed a lein?
Expert:  WALLSTREETESQ replied 7 years ago.
yes, as long as it was before the bankruptcy

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