Filed bankruptcy and agency misfiled my documents, what can I do?

Question

I filed Ch.7 and was discharged in february. I am trying to clean up and reestablish my credit now, but I have found out that my bankruptcy was actually incomplete. I went through an agency who specializes in bankruptcy, I filled out all of the proper paperwork including a full list of my creditors. After the BK was dc'd I noticed nothing was updating on my credit report, after checking PACER it is showing only 2 creditors on my creditor matrix! I had nearly 20?!? I have copies of my original paperwork with my list, and then the "official copy" mailed to me after. The "official copy shows only 2 as well, but my originals have the correct list? whats up with that? If these is true I filed bankruptcy for 700$??? shouldnt someone have seen a red flag?!? Is there anything I can do to reverse this or take legal action against the agency since it is their mistake?

Answer 1

Bankruptcy Code Section 350(b) permits the court to reopen a previously closed case "to administer assets, according relief to the debtor, or for other cause". A Chapter 7 case can be reopened to allow a debtor to add creditors that were left off. The relief is discretionary.

As you have discovered, some things are just better handled by an experienced attorney. You should consult a local bankruptcy attorney to see if reopening the case is feasible or necessary.

If your case was a "no asset" case, then you might not have anything to worry about. Failing to list a creditor can result in the denial of a discharge of that debt, but federal circuits grant a discharge nonetheless if there are no assets to be distributed to the creditors.

Although bankruptcy is a federal law, some of the case law can vary by region and you need to consult a local bankruptcy attorney for further assistance.

Answer 2

You can re-open & amend a bankruptcy to include the additional creditors. However, as the discharge has been entered, the court may require it be opened as an adversarial proceeding which will involve additional fees. Since this "agency" mad the mistake, it seems to me they should be liable for the additional costs.

** Note: This is a general discussion of the subject matter of your question and not legal advice. Local laws or your particular situation may change the general rules. For a specific answer to your question you should consult legal counsel with whom you can discuss all the facts of your case. **