Quick question

[aoccc]

So I am about to file my no asset chapter 7 case. Do I have to send out letters to each creditor and one to the trustee? I have no secured debts and I am in Illinois.

[Printer099]

The court sends out notice to the trustee and all the creditors.

[AAAArt]

The court sends out letters to the creditors AFTER you file. If you want to stop harrassing calls and are using an attorney,, you can send them out letters and refer them to call your attorney's office and to stop calling you.
It is most important that you list ALL creditors with their addresses and your account numbers when you file.
I suggest that you get a copy of your credit report from one of the agencies. If you forget a collection agency, charge account, etc from 2 or 3 years ago they can come after you after the bankruptcy.
I'm right in the middle of preparing this list myself.

[Printer099]

Generally in filing a Chapter 7, you do not have to send out notice to every creditor. The court does it when you file, if a creditor calls you simply tell them your case number and they will leave you alone. Even if a creditor calls you after the court has sent notice, this would be a violation of the automatic stay and fair debt collection act, where they could be liable for damages.

In addition, in filing a Chapter 7, if you forget to put down a debt, they CANNOT come after you when the bankruptcy is over unless it is an asset case. Most Chapter 7 cases are no asset cases. But under the new law section 523 has been amended and if a creditor is forgotten and not put down that debt will not be discharged

[freshstarter]

But under the new law section 523 has been amended and if a creditor is forgotten and not put down that debt will not be discharged

Is this part of the new law also taking effect in October?

[HHM]

Is this part of the new law also taking effect in October?

No, that is part of the existing law as well, if you fail to list a creditor, under the existing bk law, that debt is not discharged.

[accentone]

quick question on this--what if I don't want to list a creditor? I owe my dentist 1700 dollars. My family has been going to see him for years. I would prefer not to list him and just continue to make monthly payments. Can I do that? Or would that get me in trouble? (preferential treatment?)

[HHM]

Your duty under the bankruptcy code is to list ALL your creditors. When you sign the petition you are affirming under penalty of perjury that you have listed all your creditors to the best of your knowledge. You will be put under oath at the 341 meeting and asked, "did you list all your creditors".

Knowing that, you decide whether to list your dentist or not.

[Lightning]

To summarize:

If you don't list the dentist, you're committing a felony.

You decide if you want to be a felon or not.

[airbornecpa]

List the dentist. You can always make gifts to him after you are discharged.

[accentone]

Okay, guys. I got it. I WILL list my dentist! Thank you!

[Printer099]

Under the old law (determined by case law) the majority of courts hold that in a CHapter 7 NO ASSET case if you fail to list a unsecured debt unintentionallythen it is discharged. BECAUSE in a no asset case the unsecured creditor would have received nothing anyway. Here are some cases that cite it ...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).

[Printer099]

In regards to your dentist, the best thing to do is list the debt, but still continue to pay the dentist anyway, which can be done by a reaffirmation agreement.