Question:
Dear Steve,
I filed bankruptcy chapter 7 in October 2021 and was discharged Mar 2022.
I forgot one sewer assessment bill and sewer usage fees from the town of Vernon. The bill is for $10,000.
They sent my bill to an attorney for collection. I don’t have this kind of money. They want to sell my house in a public auction to recoup the money.
I have nowhere to go and will be homeless if they proceed. What can I do about this legal matter, and what attorney will help me with any referrals.? My location is Bolton, CT.
Kathy
Answer:
Dear Kathy,
Don’t panic.
You should contact your bankruptcy attorney immediately and discuss how this is handled in your area.
I am not an attorney, so you must talk to your bankruptcy attorney, licensed in your state, for legal advice.
Typically, most bankruptcy courts will discharge a debt you forgot to list as long as the trustee didn’t distribute money to creditors and the debt wasn’t incurred through fraud. – Source
There is no hard and fast rule here, so you must go back to your bankruptcy attorney and discuss the situation before panicking.
As my source site says, “Most courts would view your error as a “no harm, no foul” situation and discharge the debt. Why? Because the unlisted creditor wouldn’t have received anything even if you had remembered to list the debt.”
I’ve had people over the years receive conflicting advice on this subject, so this is why I’m strongly pushing you back to your bankruptcy attorney to fix this situation now.
In the worst-case scenario, your attorney might have to file a motion to reopen your bankruptcy and deal with the debt.
You have options here.
Please update me in the comments below with what your attorney says.
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Well I called that lawyer the only payment plan is in 3 installments 3600 3600 and the remaining. They want to take property from a senior and I have no place to go. My bill was 7200 plus 1200 when I filed bankruptcy I have not been paying them.
I would suggest you consult with a second bankruptcy attorney regarding the situation. You may have a different local process, but it is not the same everywhere. See https://www.lawhelp.org/dc/resource/frequently-asked-questions-about-utility-bill
Asked question about forgotten debt in bankruptcy.
I just answered your question.
I called my bankruptcy lawyer any water & sewer bills can’t be filed with bankruptcy. He said for me to call them and work out a payment agreement
How much did you owe at the time of your bankruptcy filing and did you start making monthly payments afterwards on current usage?