I Forgot to Include a Big Debt in My Bankruptcy. What Do I Do Now?


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.



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

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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.

Damon Day - Pro Debt Coach

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Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
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