I hear it all the time: “That guy who owes me money filed bankruptcy, but don’t worry about it. He’s going to pay me. He didn’t list me on his schedules.”

Problem is, the mere fact that you’re not listed on the schedules doesn’t mean your claim isn’t discharged in the bankruptcy. If you’re listed on the schedules or you have notice of the bankruptcy, your claim is extinguished during the bankruptcy (unless you file an adversary proceeding to prevent it from being discharged).

And even if you’re not listed on the schedules and don’t have notice, you’re probably out of luck. The debtor must merely file a Motion to Reopen the case. It’s an easy Motion to file, and in the Western District of Michigan, they make it real easy: The judge will enter an order that says, “This case will be re-opened, but only if the omitted creditor first files an adversary proceeding to contest the discharge, along with an affidavit that swears the creditor didn’t know of the bankruptcy while it was pending. If the creditor doesn’t file the adversary proceeding and affidavit within 60 days, the claim will be deemed discharged.”

In other words, the bankruptcy court puts all the work on the creditor, instead of the debtor. As a practical matter, unless you have grounds to object to the debtor’s discharge (such as fraud, criminal act, etc.), it’s not worth hassling the debtor. Just assume your claim got wiped out with everyone else’s.

Aside: If you attempt to collect a discharged debt, you’ll be in violation of a federal court injunction. It’s serious stuff. You’re probably better off messin’ with Sasquatch.

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