Legal Question in Bankruptcy in Virginia

Re: after bankruptcy has been filed

First, a couple of clarifications. Your question says you filed bankruptcy �last November,� and doesn�t state whether you have or have not already received your discharge. Also, you don�t say whether this was or is a �no asset case,� or an �asset case.� Finally, you don�t say whether the omitted debt was a secured or unsecured obligation. All of these things make a difference.

Nevertheless, in an effort to give you some guidance, I am going to assume here that by last November you mean November 2001, and that you filed a no asset case. (The vast majority of Chapter 7 cases are no asset cases, i.e. cases in which after exemptions and considering the liens and other security interests of the secured creditors there is nothing available for distribution to the unsecured creditors). I will also assume that your discharge has already been entered, and that we are talking about an unsecured debt.

If these clarifying assumptions are correct, then there is no need to reopen the case to list the creditor. In a no asset case, the innocent omission of a creditor does NOT prevent the debt owed to that creditor from being discharged (assuming the nature of the debt is such that it would have been discharged had it been listed). The theory is that the creditor was not prejudiced by not being listed and not being given notice in any event. The notice would have simply said in effect �don�t bother to file a proof of claim because there isn�t going to be anything to distribute to unsecured creditors anyway.� I note that you live in Virginia, and there is case law to this effect in Virginia.

Remember, however, it is tough to give you a full and proper response without knowing the facts much more precisely. If your case was handled by an attorney, you should go back that person and ask these questions. If you filed the case yourself, you might try going to the clerk�s office at the bankruptcy court. If you are friendly and respectful they are often willing to give you a great deal of assistance.