Contact Bob Today

Colorado Springs Bankruptcy ABC’s: “N” is for “Notice”

N (Campo Francesco Morosini, Venice)

What is “Notice”?  What does it mean to give a Creditor “Notice” of your bankruptcy case?

As a Colorado Springs Bankruptcy Attorney, I always advise my clients that they are required to list all of their creditors in their bankruptcy paperwork.  It is required under the provisions of the Bankruptcy Code.  The reason that all of the creditors must be listed is so that the Court Clerk will send them a Notice that the bankruptcy case has been filed.  That way, if there are assets to be distributed, each creditor may file a proof of claim and receive a proportionate share of the proceeds.

It’s not unusual for a client to ask, “What happens if I forget to list one of my creditors?”

In order to answer that question, we have to know whether the client’s bankruptcy is an “asset” case, or a “no asset” case.  Most people filing for relief under Chapter 7 are allowed to “exempt” most of their property with the result being that they have no assets which can be taken to pay their creditors.  Those are the “no asset” cases.

If the client’s case is a no asset case, the inadvertent omission of a creditor from the Bankruptcy paperwork will have no effect on the client.  The debt will still be discharged.  That was the ruling in a 1987 case in a District of Colorado case, In re Padilla, 84 B.R. 194.

The court held that even if the creditor had received notice of the bankruptcy filing, they would still not have received any money from the bankruptcy estate since it was a no asset case.  In essence the court held that the omission of the creditor in a no asset case was a “no harm — no foul” situation.

So what if there are assets in the bankruptcy case?  In that case the debtor has a problem.  Since the creditor was not listed in the paperwork, they may not have received notice of the bankruptcy case.  If they don’t know about the case, then they won’t know that they should file a Proof of Claim to share in the proceeds.  In that case the debt may not have been discharged, and the debtor may have to pay it.

That’s why it’s so important to make sure that all of the creditors are listed.  That way they will have notice and their debts will be discharged, whether the case is an “asset” case or a “no asset” case.

Other non-Colorado Springs bankruptcy attorneys have also written about bankruptcy “N” words:

Naked          Nondischargeable          Nondischargeable debt

Creative Commons License photo credit: takomabibelot

12 Responses to Colorado Springs Bankruptcy ABC’s: “N” is for “Notice”
  1. […] is for Nondischargeable Debt or Nondischargeable. N is for Naked. N is for Notice . Photo Credit: Steve […]

  2. Debt Consolidation Instead Of Bankruptcy
    January 27, 2012 | 10:40 am

    […] Colorado Springs Attorney Bob Doig covers Notice. […]

  3. […] Nondischargeable No Asset Report Never […]

  4. […] Notice […]

  5. N is for No Asset Report |
    February 21, 2012 | 3:45 pm

    […] Lawyer, Jay S. Fleischman Nondischargeable-Northern California Bankruptcy Lawyer, Cathy Moran Notice Colorado Springs Bankruptcy Attorney Bob Doig No Asset-Metro Richmond Consumer and Bankruptcy Attorney, Mitchell Goldstein Nondischargeable-Metro […]

  6. […] Notice–Colorado Springs Bankruptcy Attorney, Bob Doig […]

  7. […] Notice by Colorado Springs Bankruptcy Attorney Bob Doig […]

  8. […] Notice – Colorado Springs Bankruptcy Attorney Bob Doig  […]

  9. […] Notice Colorado Springs Bankruptcy Attorney Bob Doig Notice San Francisco Bankruptcy Attorney, Jeff […]

  10. […] Notice – Colorado Springs Bankruptcy Attorney Bob Doig […]

  11. […] Notice – Colorado Springs Bankruptcy Attorney Bob Doig  […]

  12. […] Notice – Colorado Springs Bankruptcy Attorney Bob Doig  […]

Leave a Reply

Wanting to leave an <em>phasis on your comment?

Trackback URL
If you need help, please don't wait for things to just get worse.
Call me at 719 227-8787 or just fill in the form.
I'll get back to you right away.
  • Your personal information will remain secure. We won't share your info with anyone. Ever. is provided as a public service by Bob Doig, a bankruptcy lawyer in Colorado Springs, Colorado. If you want to discuss a specific issue, ask a question, or even complain about something, please don't hesitate to contact me:

Bob Doig
Robert J. Doig, Attorney at Law
2985 Broadmoor Valley Road
Colorado Springs, CO 80906
719 227-8787 Office
719 325-8355 Fax
Robert James Doig LLC is a BBB Accredited Business. Click for the BBB Business Review of this Attorneys - Bankruptcy in Colorado Springs CO