- Leaving creditors off your bankruptcy filing papers is one reason the U.S. Courts website urges people not to attempt to file without a lawyer. You can have your entire case dismissed on the grounds of bankruptcy fraud if you fail to report a creditor. It is more likely, however, that a judge will dismiss your entire case only if he thinks that you are being deliberately dishonest.
- One of the most important consequences for you if you don't claim a debt on your bankruptcy forms is that the debt is not discharged. This means that even though you have declared bankruptcy, you will still owe whatever it is that you owe to that creditor. The only way you will be able to discharge the debt at a later date is by declaring bankruptcy again.
- Your creditors for undischarged debt can pursue legal action against you to claim a debt. This means that they can take you to court to force you to pay. If your creditors get a judgment, you will have that hanging over your head and it will interfere with your goal of starting your life again after bankruptcy. You might also have a garnishment order issued against your wages, something you attempted to avoid with bankruptcy.
- Depending on the size of the debt and your financial situation, failure to claim a creditor when filing for bankruptcy can set you firmly on the road to a second bankruptcy. This is why the U.S. Courts website recommends so strongly that you get legal help before you file. Make sure to get all of your debts down on paper and discharged during your bankruptcy process.