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Unlisted Debts Dischargeable

tropicalUnlisted Debts Dischargeable.   Unlisted Debts are Still Discharged in Bankruptcy.  Another way to describe this is as the Dischargeability of Bills not included in your bankruptcy.

In a Chapter 7 Bankruptcy,  your case is discharged and closed.  This article applies to a “no‐asset” case. That is a Chapter 7 Case in which the assets of the debtor either have no equity or are exempt.  Creditors that were given notice were told not to file claims. This regards bills that you allege were incurred prior the petition filing date. Section 727 of the Bankruptcy Code says “That the Court Shall grant the debtor a discharge, unless….(b) except as provided in § 523 of title , a discharge under subsection (a) of this section discharges the debtor from all debts that arose before the date of the order for relief under this chapter…” § 523
prohibits the discharge of a debt that is “(3) neither listed nor scheduled under § 521(1) of this title, with the name, if known to the debtor, of the creditor to whom such debt is owed, in time to permit…” Courts have construed this language to mean the following: In a case where there are no assets and there was no intent to defraud, all debts are discharged whether listed or not as long as they were incurred prior to the date of filing. In re Walker, 195 B.R. 187 (Bankr. N.H. 1996); In Re Anderson, 104 B.R. 427 (Bankr. N.D. Fla. 1989); In Re Davie, 302 B.R. 432 (W.D. N. Y., 2003); In Re Sharon Stallworth, Case No. 06‐24187‐A‐7 (Bankr. E.D. Cal 2008); Beezley v. Californa, 994 F.2d 1433 (9th Cir. 1993) and White v. Nielsen (In re Nielsen), 383 F.3d 922,925 (9th Cir. 2004). The last case listed being the strongest and most on point.

Conclusion:   Debts incurred prior to the date of filing are discharged and the debtor is not liable for these debts. If you have creditors informing you that you still owe these debts incurred prior the filing of the bankruptcy, you should contact these creditors and inform them the debts are discharged. Your bankruptcy attorney can often send a letter to these creditors informing them that the debts are discharged. You must be certain that the date of incurring the debt was prior to the date of filing the bankruptcy. The date of incursion is primarily when the service rendered is completed or the product is delivered to you – not necessarily the date a service or product was invoiced. If the debt was incurred after that date, the debt is not discharged.  It is always a good idea to review your credit report to ensure that none of these debts appears on your report. If you need to remove the debt from your report, simply notify the credit reporting agency via Certified
Mail that the debt is discharged by saying the date it was incurred and the date your bankruptcy petition was filed along with a copy of your discharge order.

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