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Generally, no, creditors who previously held a debt but the debt has been paid do not need to be placed on the creditor matrix or served notice of commencement of the case. It may be that this creditor would claim that there is still a debt owed, but if the debtor is confident that the debt has been paid (and that is how the creditor is reporting the debt to a credit reporting agency), then they generally do not need to be served.
Now, there may not be any harm in serving them notice of commencement of the case, as they can already access the fact that bankruptcy was filed (otherwise, they would not be asking for the notice). As such, even without the notice, they could theoretically file a claim on assets in the bankruptcy estate (if there is anything) just like any other creditor could. In addition to serving notice of commencement of the case, you would also serve the section 341 hearing notice.
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