Forgot To Include Debt In Bankruptcy Now In Collections

Question: When I filed for personal bankruptcy 4 years ago by error I forgot to add two creditors to the listing. The debt was small- two payday lenders one for $340 and the other for $400. They have both gone to collections 2 years ago and are reporting as such. Question is: Should I pay them off or just leave it? Is it worth paying now?

Contact your Trustee

Answer: In a bankruptcy one of the debtors duties is to disclose all of his or her assets (property) and liabilities (debts) to the trustee.  However the answer depends upon your situation.

If this debt was from prior to you filing for bankruptcy and you are not yet discharged, then it is pretty simple to have it included. Just contact your trustee and he will send out information to the creditor in question.

If you have already been discharged it is not worth it to pay them right now.  Even though they were not disclosed on your bankruptcy paperwork, they are included in your bankruptcy.  You should immediately contact your trustee and ask them to send notice of your bankruptcy to the two creditors.  Once the creditors are notified, they should stop any further collection action. If there were no assets in your bankruptcy and the creditors would not have received anything, they will not likely be entitled to anything now.  Otherwise you may be responsible to provide these creditors the same recovery they would have received had they been included in the bankruptcy.  Again your trustee can help.

After contacting your trustee, it would also be wise for you to contact the credit bureau and ask them to put a note on your file that both of those debts were included in your bankruptcy.

Your bankruptcy trustee can provide you with further information.

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