Bankruptcy Tips: Handling Omitted Creditors

Congratulations! You are taking those steps to a fresh start and financial freedom, but there’s a problem. A creditor keeps calling you, and obviously, this is a clear violation of the automatic stay. Do you wonder if the creditor got the “memo” about the bankruptcy? You reviewed your Chapter 7 petition and realized one credit card company slipped through the cracks. The bankruptcy clerk approved the petition, so what happens now with the missing creditor? Does this debt have to be paid back? What if you can’t afford it? What are your options? Don’t stress it. This video explains the process for you.

What Happens When Creditors Omitted from the Bankruptcy Petition

There are two scenarios to consider. First, your case remains open, and the judge hasn’t discharged your debts yet. Then it’s just amend your petition to include the missing creditor. Make sure to check your local bankruptcy court’s website for specific forms and procedures. Amending the petition usually doesn’t require another meeting of creditors.

The Bankruptcy Discharge

If your petition is approved, the judge signs the Order of Discharge. At this point, your case is closed. So the issue is were any assets distributed?

If the judge already discharged your debts and your case didn’t involve any assets to be distributed, courts have ruled it’s a waste of time to reopen the case to add a creditor who wasn’t receiving anything to begin with. It does make sense. The creditor lost nothing, so why flood the courts with hearings to add creditors who aren’t entitled to anything anyway?

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But what if there were nonexempt assets that were distributed Then the creditor did miss out on their share. If the amount was minimal, they might not pursue further collection efforts. If the sum was significant, you could try to reopen the case (with a lawyer’s help) or negotiate a settlement with the creditor.

You can learn more about filing for bankruptcy and the bankruptcy petition via this link. Information on the bankruptcy court system, contact information for trustees, and your state’s exemptions can be found here. The federal bankruptcy exemptions are listed here. The latest version of the 341 Meeting of the Creditors can be found here.

Colleges and universities can purchase my bankruptcy law textbook directly from Routledge Publishing. Paralegals and students who are buying single copies can do so via Amazon Books. To access my YouTube channel, click this link. You can also listen to my podcast on Spotify.

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Please note that the information on this site does not constitute legal advice and should be considered for informational purposes only.

Updated on August 28, 2025.