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I Don’t Have to List Charged-off Debts in My Bankruptcy, Do I?

Posted by Oswald Goldstein on June 29th, 2011

Uh. Yes. Heck yes. Heck yes with exclamation points.

I know that hope springs eternal in the human breast, but it’s a bad idea to leave any debt, of any sort, off of your bankruptcy petition and schedules. If a creditor doesn’t get actual notice by the drop dead date, that creditor may well not be affected by your Bankruptcy Discharge Order.

And if all of your other debts have been discharged, there’s more available to that creditor when he sues you and garnishes you and liens your house. And that doesn’t count the debtor’s exam, which is less fun than a root canal!

And “charged off” doesn’t mean you won’t be sued on that debt; it’s just an internal accounting phrase used by banks, and it has some bearing on how much money a bank can loan. It has no bearing on whether the bank can, or will, sue you.