Court rules credit card debts not listed in bankruptcy schedules were not discharged.  Here, debtor filed bankruptcy against her creditors and inadvertently failed to list NCNB National Bank of Florida.

The bank had no knowledge of the bankruptcy filing. Three years after the debtor’s discharge in bankruptcy, debtor petitioned the court to reopen the case so that she could add the bank as a creditor.

This court denied the debtor’s request and refused to allow the bank to be added in at this late date. Although some courts have allowed debtors to add creditors at a later date, the court found that the bank would be highly prejudiced by the delay.

The court ruled that the bank had lost valuable rights because it would no longer be in a position to file a complaint seeking to except its debt from discharge.

Furthermore, the bank lost the right to participate in the administration of the estate (even though there were no assets); lost the right to appear at the first meeting of creditors; the right to challenge the debtor’s claims of exemption; and, most importantly, lost the right to challenge the debtor’s right to a general bankruptcy discharge.

In this case, there was no dispute that the bank was not listed by the debtor in the initial bankruptcy and there was no evidence that the bank had any verbal notice whatsoever.

Since reopening the case would prejudice the bank, the court found the debt owing would not be discharged. Debra Reese vs. NCNB National Bank of Florida, 133 B.R. 245.

Author: Charles R. Harroun, Attorney at Law