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CalAttorney2, Attorney
Category: Legal
Satisfied Customers: 10244
Experience:  Civil litigation attorney for individuals and businesses.
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What would be the consequences of a debtor, during bankrupcy

Customer Question

What would be the consequences of a debtor, during bankrupcy proceeding, failing to list a legitimate debt? This happened to my parents (now deceased); debts are now owned/assigned by me ($225,000.00). I am the daughter. I have recentally learned that all debts must be disclosed. The debtor did not as he had indicated he would pay this money back. He has made no effort to do so and will probably not.
Submitted: 1 year ago.
Category: Legal
Expert:  CalAttorney2 replied 1 year ago.

If the loan was not listed, it is not discharged, so the creditor can still enforce the debt even after bankruptcy.

This gets complicated and the debtor can still file for an amendment to the original bankruptcy plan (which of course would be opposed if it can be shown that the failure to list in the schedules was intentional - courts take the bankruptcy schedules very seriously).

Given the value of the debt ($225,000.00), I would highly recommend speaking to a local civil litigation attorney to help you with this matter. You will want to do this promptly as given the nature of your question I would be concerned about statute of limitations issues and evidentiary complications with the assignment, all of which can be dealt with more easily if you speak to an attorney earlier rather than later.