Forgotten Creditors Unlikely to Get Paid in Bankruptcy Process

When filing for bankruptcy, a debtor may forget to list a creditor. This is not an ideal situation for the debtor, as they may still owe that debt after discharge.

When a debtor is filing for bankruptcy protection, they must fill out numerous documents that tell the court the names of all the creditors involved in their case, what real and personal property they own, who their unsecured and secured creditors are and how much they are owed. The list must be complete, but occasionally it does happen that a creditor is left off the list. Should that happen, it is best to consult with your Iowa bankruptcy lawyer to find out what to do about not filing a complete list of creditors.

If the debtor is filing Chapter 7, they are required to submit Schedules A through J with the bankruptcy court. Schedule A is to list the debtor’s real property. Schedule B is to list all personal property the debtor owns. Schedule C lists exempt property, and in Schedules D through F, debtors must list all of their creditors. Should the debtor have executory contracts and/or unexpired leases, they are listed on Schedule G.

If you have any co-debtors, their names and other relevant information must be listed in Schedule F and your expenses and income laid out on Schedules H and J. As you can see, with all the lists, rules and various requirements for filing for bankruptcy protection, there is the possibility of forgetting a creditor. If your case is being handled by a competent Iowa bankruptcy lawyer, he will help you fill out your list and ask that you search your memory for forgotten debts.

Creditor information for Schedules D through F must include the account number used for a debtor, the creditor’s name and mailing address. Then on Schedule D, the debtor needs to list security interests, garnishments, judgment liens, mortgages, deeds of trust and statutory liens. Unsecured priority creditors should be listed on Schedule E and non-priority unsecured creditors on Schedule F. The bankruptcy trustee uses this information to ensure all creditors are recognized and paid.

Once the Chapter 7 bankruptcy has been filed, it is up to the trustee to sell the debtor’s property and pay off the creditors. If the debtor did forget to list one of their creditors, they will not get paid. However, the most important thing to note is that if the debtor forgot a creditor and they are discharged from their debts, the debt to the forgotten creditor is still owed.

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit or call 1.877.888.1766.