Expert: Terry Leeders - 10/27/2008

Question
Client filed a no-asset Chapter. 7 bankruptcy in 2003. Now, 5 years later, his father is suddenly suing him for over $35,000 he claims he lent to his son over the past 15 years.  Client did not list father as a creditor in bankruptcy schedules because he had no idea father would ever claim the fund were merely loans.  Does the bankruptcy preclude the father from asserting a claim re: any funds "loaned" to son prior to the Chapter. 7 filing date?

Answer
it would depend on the state where it was filed. Some case law says yes, discharged if not listed, but would have been had the debt be known, mere oversight is ok...another line of cases said must be listed.
Any case after Oct 17, 2005 would fall under the new law, which states that only debts that are scheduled are discharged.  Client should talk to his bankruptcy attorney to see what the local case law was.