why would the attorney general be listed as a creditor in a bankruptcy

How can a bankruptcy lawyer help me with unsecured debt?

A Creditor List is a listing of the name and address (creditor record) of each creditor in a bankruptcy case. It must be filed or presented electronically. A diskette, CD, DVD or USB drive with the Creditor List file in TXT format must be submitted for bankruptcy cases filed non-electronically (on paper), pursuant to S. D. Ind. B-1007-1 (b) .

What are the rights of creditors in a bankruptcy case?

Feb 19, 2015 · B. Asserting Claims To The Bankruptcy Estate. 1. Whether to File a Claim a. Necessity of filing (1) General rule: filing is required. The only claims allowed to share in the bankruptcy estate are those for which proofs have been filed.

Does a bankruptcy discharge affect creditors’ claims?

A former client or other creditor contacts the attorney’s office to inquire whether the creditor was listed and discharged in the bankruptcy case. Despite the fact that generally even unlisted creditors are still discharged, it can sometimes become very time consuming and problematic convincing the creditor that they were discharged despite improper notice.

How important is the creditor mailing list in bankruptcy?

The automatic stay protects the debtor and his property from all forms of collection during the bankruptcy. In Chapter 13, the stay also protects co debtors on consumer debts. File a claim with the court. The notice of the bankruptcy sent by the court clerk tells you where to file a proof of claim and the deadline for doing so.

What is a creditor in a bankruptcy case?

A creditor is someone (or some entity) that has a right to payment or other remedy against/from the debtor who is the subject of the bankruptcy filing. Your options as a creditor depend on which bankruptcy chapter was filed, how your claim arose, and what is going on in the bankruptcy case.

Is the government a creditor?

Who are the nation's creditors? The government owes the most money to — itself. U.S. government agencies, including giant trust funds of the Social Security and Medicare systems, and the independent Federal Reserve System account for 41 percent of the federal debt, more than $2 of every $5.

What happens if a creditor is not listed in Chapter 7?

Any debt you fail to list in an asset case won't be discharged. If, however, yours is a no-asset Chapter 7 bankruptcy (there's no money to repay creditors), the debt still might be discharged.

What happens if a creditor is not listed in Chapter 13?

Unfortunately, if a creditor is not given timely notice in a Chapter 13 case or Chapter 7 asset case (where assets would be distributed to creditors) to object to their claim treatment, dischargeability, or opportunity to receive distribution proceeds, then their claim will typically survive the discharge.Jan 25, 2019

Who are the US largest creditors?

Of the total 7.55 trillion held by foreign countries, Japan and Mainland China held the greatest portions. China held 1.05 trillion U.S. dollars in U.S. securities. Japan held 1.3 trillion U.S. dollars worth. Other foreign holders included oil exporting countries and Caribbean banking centers.Dec 7, 2021

Who is us in debt too?

Many people believe that much of the U.S. national debt is owed to foreign countries like China and Japan, but the truth is that most of it is owed to Social Security and pension funds right here in the U.S. This means that U.S. citizens own most of the national debt.

Can creditors collect after Chapter 7 is filed?

Once you file for bankruptcy, an automatic stay goes into effect. An automatic stay specifically states that creditors cannot contact you to collect debts after you've filed for bankruptcy. It protects you from harassing phone calls, emails, and letters.Feb 20, 2020

What debts are dischargeable?

Dischargeable DebtsDischargeable debt is debt that can be eliminated after a person files for bankruptcy. ... Some common dischargeable debts include credit card debt and medical bills. ... In Chapter 7 cases, a discharge is only available to individuals but not to corporations or partnerships.More items...

Can I add a debt to my Chapter 7 after discharge?

So long as the debt was incurred before the date that you filed bankruptcy it can be added to a current Chapter 7 bankruptcy.Nov 13, 2018

What happens if a creditor objects to Chapter 13?

If you object to a creditor's proof of claim in your Chapter 13 case, and prevail in that dispute, you pay nothing on that debt.Dec 26, 2016

Will my credit score go up after Chapter 13 discharge?

Your credit score after a Chapter 13 Bankruptcy discharge will vary. Your new score will depend on how good or bad your credit score was prior to the filing of the Chapter 13 Bankruptcy. For most individuals, you can expect to see quite a dip in your overall credit score.

What happens after you pay off Chapter 13?

Once you finish your Chapter 13 repayment plan, the remaining 30 percent of your debt is discharged, meaning you won't have to repay that remaining debt. If you pay your Chapter 13 plan off early, you alter the agreed upon terms of your bankruptcy case.Jul 13, 2021

What happens if you don't list a creditor in bankruptcy?

Simply, if you did not list a creditor at all or did list them but not at an address they use to receive mail from the USPS, then maybe they no idea that you filed bankruptcy. That may be the reason they are contacting you – they have no idea you filed.

What does "no asset" mean in bankruptcy?

A “no asset” case means the Chapter 7 Trustee is not going to take any property from you and not make any payment to creditors. You can formally add them to you list of creditors. This approach means they will receive all future formal notices from the Bankruptcy Court. You would want to do this as early as possible.

Can a Chapter 13 debtor get discharged?

Sometimes, in a Chapter 13 or an “asset case” Chapter 7, the debtor is not going to receive a discharge of the omitted debt. Bankruptcy is serious business. A debtor needs to pay careful attention and follow all the rules to receive the full extent of the relief available.

What happens if a trustee files Chapter 7?

If the Chapter 7 Trustee ultimately makes a distribution to creditors (which is known as an “asset case”), but the omitted creditor is not notified of your filing in time to file a claim and share in the funds distributed, then their claim is not discharged! DO NOT DELAY in addressing this issue. In this scenario, a debtor should immediately bring ...

Can you add a creditor to a case?

Typically, you cannot reopen your case to formally add a creditor. Frankly, most courts say there is no need to do so. Instead, a debtor should tell the creditor they filed and send them a copy of your Discharge Order. As always, keep records and evidence that you notified them in case they engage in collection efforts sometime in the future. The key is to notify them of the filing and discharge AND be able to prove your did that if they later engage in further collection activities.

What happens if you don't file a proof of claim?

If they timely receive Notice and chose not to file a claim, then the debt is discharged upon completion of the case (assuming it’s a dischargeable debt).

Can a secured creditor get a payment from a Chapter 13?

Lastly, in a Chapter 13, a secured creditor (creditor secured by a car, house, etc.) won’t get payment from the Chapter 13 Trustee unless the Trustee has a claim filed by the creditor (or debtor). Using the car creditor example, without a claim filed by that creditor, the funds debtor intended for the car creditor might be distributed to a credit card or medical debt creditor. In that scenario, the car creditor is never paid, and the car lien remains; if the debtor wants to own the car, they still need to pay the creditor to remove the balance due on the car.

What is automatic stay in bankruptcy?

The automatic stay protects the debtor and his property from all forms of collection during the bankruptcy. In Chapter 13, the stay also protects co debtors on consumer debts.

Do creditors have rights in bankruptcy?

Creditors’ Rights In Bankruptcy. All too often, creditors get a bankruptcy notice and they quit. They assume they have neither rights nor alternatives with respect to their claim against the debtor. Not (entirely) so,

What is secured creditors?

Most often, those rights are created by, and described in, a deed of trust on real property, a security agreement on personal property, or a judgment lien. Secured creditors have the best chance of getting relief from the automatic stay or “adequate protection payments” to prevent a decline in the equity available to secured their claim.

What is bankruptcy code?

After all, the Bankruptcy Code is a balancing act between your rights and those of your creditors. Schedule a Free Consultation. The guaranteed, fastest, least expensive, and least stressful way to eliminate debt.

Can you discharge debt in Chapter 7 bankruptcy?

Below, are the most common unsecured debts, with some exceptions, that will not be discharged in your bankruptcy case. Note that some debts that are not dischargeable in chapter 7 can be discharged in chapter 13. Debts automatically not dischargeable in chapter 7. Domestic Support Obligations of Any Kind.

What is a creditor in bankruptcy?

Creditors are the entities to whom you owe money. More appropriately, in bankruptcy, creditors are the entities who hold (or have) “claims” against you for money. NOTE. In bankruptcy the terms “creditor (s)” and “claim (s)” are used interchangeably. Your creditors (i.e. their claims) may be treated differently by the Bankruptcy Code.

Does bankruptcy eliminate personal liability?

As discussed above, the bankruptcy discharge will eliminate your personal liability on most debts. What the bankruptcy discharge will not do, however, is eliminate the security interest.

What is a nondischargeable claim?

A super special class of creditors whose claims are not dischargeable. Finally, there’s a special class of claims that you may not be able to discharge in your bankruptcy case. These claims are referred to as “nondischargeable.”. I incorporated nondischargeable claims into the discussion of unsecured creditors below.

What is security interest in bankruptcy?

your promise to pay back the loan). In bankruptcy, the creditor holding a security interest is referred to as a “secured creditor” holding a “secured claim.”.

What happens if you don't pay your taxes?

For example, if you don’t pay your federal taxes on time, the IRS may record a Notice of Tax Lien with the county recorder and the lien will attach to all of your property. In bankruptcy, government creditors with statutory liens have a property interest in your property and are treated as secured creditors.

What do you need to file for bankruptcy?

When you file a bankruptcy, you have to go through a lot of paperwork. You’ll need to include complete documentation of all your income and assets. You’ll also need to include complete documentation of all your debts. That includes a complete list of all your creditors. The court uses that list to notify your creditors about your bankruptcy.

Who is Erik Clark?

M. Erik Clark is the Managing Partner of Borowitz & Clark, LLP, a leading consumer bankruptcy law firm with offices located throughout Southern California. Mr. Clark is Board Certified in Consumer Bankruptcy by the American Board of Certification and a member of the State Bar in California, New York, and Connecticut. View his full profile here.

Can you collect debt after bankruptcy?

You may still face collection after your bankruptcy discharge. Secured debts are linked to a specific piece of property and are not discharged in a bankruptcy, but they may be reaffirmed, surrendered, or reorganized. Your creditor has to be involved in that process.

What is a creditor mailing list?

Your “Creditor Mailing List,” also sometimes called a “mailing matrix,” must include all of your creditors and their contact information. That includes debts that won’t be handled through the bankruptcy process, such as student loan debts. The court uses that list to send your creditors a notice that you’re filing a bankruptcy. That’s important for creditors because they may want to be involved in the process.

Can creditors get notice of bankruptcy?

Creditors left off the mailing list won’t get notice of the bankruptcy and won’t be able to file a proof of claim, so they don’t get the opportunity to claim their piece of the repayment. Unsecured creditors left off of your bankruptcy filing have the right to collect from you after your bankruptcy discharge.

What happens if you don't get notice of bankruptcy?

If they don’t get notice, they have no way of filing a proof of claim and get shut out of your bankruptcy. Not only is the creditor mailing list important to your creditors, it’s important to your case. When you file, you get the protection of the automatic stay. That means all collection efforts have to stop.

What is Chapter 7 bankruptcy?

In a Chapter 7 bankruptcy, you surrender your non-exempt assets to the court. Those assets are sold and the proceeds are distributed to creditors. Most debtors have no non-exempt assets; this is called a “no asset” bankruptcy.

First Step – Did You Actually Forget / Omit A Creditor?

• If you are contacted by a creditor after filing, one of the very first things you need to do is review your bankruptcy petition and see that BOTH (a) the creditor was listed by name, AND (b) the address for them was sufficient for them to actually receive notice that you filed bankruptcy. Simply, if you did not list a creditor at all or did list them but not at an address they use to receiv…

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Next Step – Tell Them You Filed Bankruptcy & Keep Records.

If They Were Properly Listed, What Do You do?

If They Were Not Properly Listed, What Do You do?

Omitted Creditors with Nondischargeable Debts – Issues

Omitted Secured Creditors in Chapter 13 – Issues

Conclusion