Chapter 13 question about listing creditors you dont owe money on schedule..

[moorman]

i went to a attorney who did a preliminary chapter 13 schedule of unsecured creditors. he pulled my credit reports and included EVERYBODY on it, regardless of if i owe them or not. i questioned that because i have closed accounts at a credit union that i paid off, and he included them. he said it was ok. does that sound right because i want to use that credit union later when i rebuild my credit.

[frogger]

You include everybody, everything, right down to the kitchen sink and the neighborhood dog. If they do not have an interest in the bk estate, then it doesn't matter. If you do not list or happen to miss a creditor, you will still owe them after your bk is completed.

List everyone.

[moorman]

You include everybody, everything, right down to the kitchen sink and the neighborhood dog. If they do not have an interest in the bk estate, then it doesn't matter. If you do not list or happen to miss a creditor, you will still owe them after your bk is completed.

List everyone.

but would that prevent me from getting credit with a creditor for listing them? like i said, he listed a credit union that i have PAID and CLOSED credit cards with that were reporting those good credit lines. i want to use them again down the road and dont want them coming back saying i filed chapter 13 against them. thanx.

[LadyInTheRed]

Your credit union will learn of your BK when you apply for credit, whether or not they are listed on your petition and receive notice. They will know your history with them. Their decision won't be affected by whether or not you listed them as a creditor. They should continue positive reporting if your debt with them is not discharged.

That said, if you don't want them included on your petition, tell your attorney you are certain that you do not owe them money and that you don't want them listed. He should follow your instructions. As Frogger said, when listing creditors, it is safer to list everyone who could possibly claim you owe them money.

[moorman]

Your credit union will learn of your BK when you apply for credit, whether or not they are listed on your petition and receive notice. They will know your history with them. Their decision won't be affected by whether or not you listed them as a creditor. They should continue positive reporting if your debt with them is not discharged.

That said, if you don't want them included on your petition, tell your attorney you are certain that you do not owe them money and that you don't want them listed. He should follow your instructions. As Frogger said, when listing creditors, it is safer to list everyone who could possibly claim you owe them money.

so, the MAIN issue is whether or not i owe them money, vs if i list them on the petition. thats what im reading from your response.........

[frogger]

so, the MAIN issue is whether or not i owe them money, vs if i list them on the petition. thats what im reading from your response.........

Yes, that is "sort of" the main issue. With that being said however, I see a lot of things left off of bankruptcy filings by everyone not being listed. The safest way to do it is to list absolutely everything.

Phantom debts can run amuck...........

[justbroke]

Phantom debt is almost as bad as zombie debt!

[magic13]

In some states you are encouraged to begin the process of rebuilding your credit while you are active in a Chapter 13. In my state we are allowed up to $2,000 in new credit without notifying the court. For this reason, my Attorney did not list credit cards with zero balances. Three of these cards, American Express, Macy's and Fingerhut are reporting and checking my credit monthly and are still allowing the use of their cards. My credit score has climbed 50 points in a year and is now around 680 which is very important for insurance and possible renting purposes. If you list the paid up credit union, it will report "Debt included in Chapter 13 bankruptcy" and that is not what you want. If they close the account it is one thing, but to report the debt is included in wage earner plan is another. I would research Georgia rules with another attorney.

[moorman]

In some states you are encouraged to begin the process of rebuilding your credit while you are active in a Chapter 13. In my state we are allowed up to $2,000 in new credit without notifying the court. For this reason, my Attorney did not list credit cards with zero balances. Three of these cards, American Express, Macy's and Fingerhut are reporting and checking my credit monthly and are still allowing the use of their cards. My credit score has climbed 50 points in a year and is now around 680 which is very important for insurance and possible renting purposes. If you list the paid up credit union, it will report "Debt included in Chapter 13 bankruptcy" and that is not what you want. If they close the account it is one thing, but to report the debt is included in wage earner plan is another. I would research Georgia rules with another attorney.

see, thats ANOTHER reason i dont like what the attorney did. he listed about 5 accounts that i had paid as agreed and closed on the schedule.

[LadyInTheRed]

If you list the paid up credit union, it will report "Debt included in Chapter 13 bankruptcy" and that is not what you want.

see, thats ANOTHER reason i dont like what the attorney did. he listed about 5 accounts that i had paid as agreed and closed on the schedule.

If you paid the debt off before you filed BK and they report it as included in your BK, the reporting would be inaccuarate and you should dispute it. Simply listing a creditor in your BK does not make a paid-off debt included in the BK.

Your attorney did list the balances as zero, didn't he?

[moorman]

If you paid the debt off before you filed BK and they report it as included in your BK, the reporting would be inaccuarate and you should dispute it. Simply listing a creditor in your BK does not make a paid-off debt included in the BK.

Your attorney did list the balances as zero, didn't he?

yes he did. thats how i noticed it. i was looking at the balances and wondered why all those zero balances where on the schedules. i see what you are saying. gonna bookmark this thread as reference if the credit bureaus do that. thanx.......

[frogger]

If you list the paid up credit union, it will report "Debt included in Chapter 13 bankruptcy" and that is not what you want. If they close the account it is one thing, but to report the debt is included in wage earner plan is another.

Nope. If you have a 0 balance, there is no debt that was included in the bankruptcy, so it should not be "debt included in Chapter 13 bankruptcy". I have many paid accounts on my credit report and none of them ever had the "included in bankruptcy" status applied to them.

If it does happen however, it's an easy fix.

List 'em all!

[kmjatl]

Let me guess....you went to "the largest bankruptcy filer in Georgia"?

[moorman]

Let me guess....you went to "the largest bankruptcy filer in Georgia"?

nope..........

[ksgirl38]

I would not list them all. If you have credit cards with 0 balances, there's no need to list them. They may or may not survive a bankruptcy, but personally I'd take the risk. If they do make it then you have something on your credit report to help you rebuild credit. Now a bank account with a 0 balance you may want to list just in case there are some random checks out there that haven't been cashed. I guess this would depend on how long ago you closed the account.

As far as the credit cards, I didn't list my Eddie Bauer or Victoria's Secret and granted I don't use them very often. Maybe twice a year each. As far as both those are concerned I'm a great customer because I pay them off right away and still qualify for the promo coupons. Still haven't spent the one Eddie Bauer sent me for my birthday. Now major cards (AmEx, Visa and MC) are another story.