Not really. You cannot pick and choose which creditor goes in your bankruptcy. Bankruptcy law requires you list all your creditors on your bankruptcy paperwork. This means anyone you owe money to must be mentioned in your bankruptcy.
Unsure If I Owe Money
If you are unsure you someone money, mention them anyway. Because listing a creditor or debt collector even if you do not owe them anything is better than not listing them at all, especially if you later discover you owed them money.
I Have A Charge Off
List the “Charge Off” account on your bankruptcy papers. Just because the account is being reported as “Charged Off” does not mean you no longer owe the debt. The debt could have been sold to another debt buyer or debt collector. Listing the Charge Off account as a debt you owe likely discharges the debt whether or not is was sold to another debt collector.
I listed The Wrong Amount Of Debt Owed
If you list the creditor but list the incorrect amount of debt you owe them it is ok, and the entire debt is likely still dischargeable in a chapter 7 bankruptcy. The more important piece is that you list the creditor and their address, so they receive notice of your bankruptcy. A creditor receiving notice of your bankruptcy is important for chapter 7 bankruptcy cases and even more important for chapter 13 bankruptcy cases.
I Forgot To Add A Creditor
What if you forgot to add a creditor to your bankruptcy papers because you did not know you owed them money? If you inadvertently forgot to list a pre-petition creditor, they are likely still dischargeable in a “no asset” chapter 7 bankruptcy.
However, leaving out a pre-petition creditor in a chapter 13 bankruptcy case can make a difference since your monthly payments are being distributed to your creditors. Read more about chapter 7 and chapter 13 bankruptcy by clicking here.
I Have A Zero Balance On My Credit Card
What happens if you paid off a credit card prior to filing bankruptcy, do you need to list that creditor in your bankruptcy papers? Probably not. Because you do not owe them any money, they are not technically a creditor of yours.
Although, just because you do not add them as a creditor does not mean they will keep your credit account open. Many banks and creditors will close your account anyway because they perform a routine sweep to check if their customers filed bankruptcy.
Pre-petition vs. Post-petition Credit Card Charges
The bankruptcy filing date is an important date. Credit card charges prior to that date are dischargeable and creditor charges after that date are not. So, once you file bankruptcy stop using your credit cards.
It is wise to stop using your credit cards a least a few weeks prior to filing bankruptcy so the line between pre and post-petition charges is clear.
Conclusion
Picking and choosing which creditors go in your bankruptcy case is not allowed. All your creditors must be listed. Your creditors have the right to receive notice of your bankruptcy.
Listing a creditor you do not owe money to does not hurt you, but not listing a creditor you know you owe money to can hurt you. So, default to over disclosure when it comes to listing your creditors.
Published: May 16, 2019
