Newly discovered creditor after filing

[bagel]

Of course I just found a new creditor 5 days after filing chapter 7. I was reading the Nolo book (yes the new one), and I was a little confused by the following statement.

"you can always amend if you discover the omission while your bankruptcy case is still open. But suppose you don’t become aware of your omission until your bankruptcy is closed. Does that mean that the debt survives your bankruptcy? Not at all. If the creditor had actual knowledge of your bankruptcy, then it’s the same as if the creditor were actually listed in your papers."

I have already told the creditor I filed for chapter 7 and I gave them my case number. If I'm understanding the book correctly does it mean that since the creditor already knows about my bankruptcy and has my case #, then there's no reason for me to ammend anything? I'm a little confused about this.

[AngelinaCat]

Technically you should amend your schedules to add the new creditor, so that they can get the written notice of your 'Suggestion of Bankruptcy'. The fee is usually just $26.00 whether you add one or 100. But if they already know and have your case number, then they should be aware of it. I would think you could just send them a copy of your 'Suggestion of Bankruptcy' and that would do it. I jsut hope you don't find any others.

This is a 'wobbler' for me. I think I will let Justbroke or Des give an opinion here.

Now as far as after the BK is discharged and closed, here is what happened to us. We had our land-line telephone with Bellsouth. With BS, we had unlimited long distance with no charges other than the basic rate. While we were in the active BK, AT&T took over Bellsouth and started charging for the long distance. We were never notified of this change because of the Automatic Stay. After we were discharged we started getting bills from AT&T for $586.00. We said, no way are we paying this. (We also didn't have the money.) We sent a C&D letter to them along with a copy of the Discharge Order and basically told them to go away. Each and every time this debt was sold, we did the same thing. That was in 2008 and 2009; must have sent out three or four of these notices.

AT&T is now the defendent in a class action suit against them for unfair billing practices...

I hope this helps, and congratulations on having the NEW book. Congrats also for having filed. That is a BIG step!

[jst4f]

If you are a no asset case, then it doesn't matter if you missed a creditor as there was no money to disperse to unsecured creditors. A secured creditor can repo (foreclose) the asset that secures the loan whether you list them or not. If there is any doubt that you might be an asset case, file an amendment as there will be no doubt in the future that they were notified. Providing evidence in the future that you notified them by mail seems to be problematic: it shouldn't be but it is. They can make all sort of claims that throws doubt that they were properly notified. This is in addition to having to answer the question why you didn't list them in the first place. "Tell us Mr bagel how you could forget to list them and yet remember exactly how you notified them by mail..." Amend your filing and it is all done. I would have amended mine if in the same situation.

My 2-cents.

[LadyInTheRed]

Amend the petition. It's easy. It's cheap. It could later make it easier to deal with the creditor or somebody who buys the debt.

[tobee43]

lady and anglinacat are SO correct here. also, it's not the point that one may be a no asset case, it is the right of every creditor to be notified of these proceedings when then are named in them. amend the petition, it's far safer for you in the long run.

[bagel]

I took care of that one.

BUT. Something horrible happened today. I got a letter from the Oregon Department of a Revenue that says they took my tax return to pay off an account at a community college, something that I assumed had been discharged in my ch. 7. I have tried disputing this with the school and the Oregon Department of Revenue, but they are saying that educational debts are not dischargeable. My understanding was that only student loans are non dischargeable debts, but I did not have a student loan so I am really confused. Any advice?

[bagel]

What's even more frustrating is that I've never even been to the campus of this school before, I had registered for a few classes there as a backup plan and never went through with it. This was 3 years ago and when I found out, I immediately tried disputing it but obviously that didn't work.

[doni49]

I took care of that one.

BUT. Something horrible happened today. I got a letter from the Oregon Department of a Revenue that says they took my tax return to pay off an account at a community college, something that I assumed had been discharged in my ch. 7. I have tried disputing this with the school and the Oregon Department of Revenue, but they are saying that educational debts are not dischargeable. My understanding was that only student loans are non dischargeable debts, but I did not have a student loan so I am really confused. Any advice?

I know that student loans can't be discharged. But I can't say one way or another about actual tuition with the school. I've never heard of a school allowing you to take classes without paying FIRST.

Did you sign a contract agreeing of some sort when you registered with this school? If not, I'd sue the school for return of that money. If you DID sign a contract with them, then take that contract and go see an attorney.

Good luck!