Can I Add a Creditor After My Bankruptcy is Filed?

You may not have ever expected to file for bankruptcy, but life happens. You may have gotten sick or injured and now have thousands of dollars in medical expenses. Your only vehicle may have unexpectedly broken down, forcing you to buy another one. 

If you cannot keep up with your debts, filing for bankruptcy can help you discharge your debts or make a plan to repay them. While you can file on your own, it is always better to work with an experienced bankruptcy lawyer because we know the rules, processes, and deadlines that apply.

Having a lawyer on your side can also help you avoid common mistakes. One of them is forgetting to add a creditor. Sometimes the stress and work involved in a bankruptcy can cause you to overlook things, such as exactly to whom you owe money. 

When filing for bankruptcy, you need to include everyone to whom you owe money. This includes things such as student loans, parking tickets, taxes, and any old phone, electricity, or gas bills. Even if you do not think these bills will get discharged in bankruptcy, you still want to include them.

If you owe money to a creditor that you may not have heard from for months, then you may overlook them in your bankruptcy filing. However, what sometimes happens is that the creditor suddenly emerges during the filing, and you may want to add the creditor to your filing.

So what happens next? Can it be done? Or do you have to just pay the bill? Here is what you need to know.

When Can You Add a Debt?

As long as the debt existed before you filed for bankruptcy, you can add the creditor within four months of filing. If you got new debts since the filing, they are not eligible.

Each court is different in how you will add the debt, though. In many cases, your lawyer can just file an amendment to add the creditor to your Chapter 7 or Chapter 13 bankruptcy filing and your case will proceed as normal. In other situations, the addition of the creditor may be denied. If it is allowed, you may be required to reopen your bankruptcy case, which can cost extra money. In the case of a Chapter 13 repayment plan, if the plan has already been confirmed, adding a new creditor will affect the plan and could end up being a problem. You would likely have to come up with extra money to ensure everyone gets paid. Discuss your situation with your lawyer and they will help you understand your options. 

Discuss Your Case With Our Indiana Bankruptcy Attorney

Bankruptcy can be a complicated process. It is not uncommon for mistakes to be made, but fixing them can be complicated.

Whitten & Whitten can help you deal with your bankruptcy issues and guide you through the process. Fill out the online form and request a free consultation with our Indiana bankruptcy attorney today.