When a debtor files bankruptcy they are required by law to list all creditor claims against them. If a debtor fails to list all creditor claims in bankruptcy, that unlisted debt may not be discharged even if the bankruptcy case is eventually discharged.
Here are some of the claims that a creditor may have against a debtor:
- A secured claim. A secured claim is a debt owed to the creditor which is backed by some property. For example, a car loan is a secured loan, as is a mortgage.
- An unsecured claim. An unsecured claim is debt that is not backed by any collateral. For example, a credit card loan is usually an unsecured claim.
- A disputed claim. Even if a debtor says that they don't owe the debt, they still need to list the claim in their bankruptcy case. Both disputed and undisputed claims must be listed in bankruptcy.
- A judgment. If a creditor wins a lawsuit against a debtor they will receive a judgment. If a creditor has garnished your wages, seized your bank account or taken hold of your income tax refund then that means that they probably have a judgment against you. That judgment must be listed in the bankruptcy.
- Tax levies and tax liens. Whether tax levies or liens are from the state or federal government that are still creditor claims and must be included in the bankruptcy.
- Claims that arise from civil lawsuits and have a monetary award must be included in bankruptcy. For example, if someone sued you for $1000 and won, that needs to be included in the bankruptcy. This person is now a creditor. Also, if there are any pending lawsuits, they need to be included in the bankruptcy paperwork.
To find out more about creditor claims and bankruptcy, speak with your Dallas-Fort Worth bankruptcy attorney.