Originally filed chapter 7 but may change into chapter 13

[Anonymous]

I recieved a call from my bankruptcy attorney today and was told that they never put my original outstanding debt within my bankruptcy petition. I filed chapter 7 over 2 years ago. It is a complicated story and I feel like an idiot but long story short. I overlooked the fact that my lease that I cosigned on a business with my ex for was not put in my file. I feel so stupid and am devastated because I have worked sooo hard to fix my credit. My scores are in the mid-600s and I have a decent rate on my car loan plus have graduated to some higher tier cards like the discover and two upper tier capital one cards. All of which I started with credit one and a secured capital one card. He said that he would possibly have to reopen my case and change it to chapter 13 in which I would have to agree to pay a certain amount of money per month to satisfy a portion of the debt. Besides feeling stupid, I am boiling with anger at my ex for being an irresponsible **bleep** that left me with the debt which originally was set to help him run a business. Has this by chance happened to anyone in here? And if so what did you do? This situation sucks sooo bad. I'm supposed to be getting married next year and we want to purchase our first home together but this might all be ruined because of my case being reopened again. I'm soo pissed and more disappointed at myself than anything. Any advise or help would be awesome. If it helps at all, my case has been closed over 2 years.

[bstone]

More curious than anything, how did this come to your attorneys attention? If the case was closed what caused them to look at it again?

[ezdriver]

Consult a different bankruptcy attorney because my understanding is that ALL unsecured debt that exit at the time of filing are covered/included in a ch7 bankruptcy even if you forgot to list one. Co-signing a lease is an unsecured debt in my opinion ... but I am not an attorney.

Also, if that lease was not recorded in the public records of your country/town, then it would likely have never shown up on your credit report. Did it show up on your credit report?

What is the status of the business that is/was in the leased space? Is it active and ongoing? As the co-lesee on that space, you may have legal rights to force your ex to get a new lease in his own name and let you off the hook.

Bottom line is that you need legal advice.

[CH-7-Mission-Accomplished]

---

@ezdriver wrote:

Consult a different bankruptcy attorney because my understanding is that ALL unsecured debt that exit at the time of filing are covered/included in a ch7 bankruptcy even if you forgot to list one. Co-signing a lease is an unsecured debt in my opinion ... but I am not an attorney.

---

I agree with this.  I think your attorney should be motioning the court to reopen your chapter 7 and discharge this debt.  I think if you can show good faith you can prevail.  Also, you have to show that there would be no difference to the leaseholder, which there would not be, since you would have been off the hook.  In other words, he would have been out of luck had you remembered to list him, so no harm, no foul amending to add him.

I have no idea what the lookback period is, but I would think you would be accountable for when this came to your attention, and if you acted in a reasonably quick manner upon realizing it, you have a good chance.

I would talk to at least two bankruptcy attorneys.

Also, what would happen in your case is not converting the old 7 to a 13 -- if you did that, you would have to pay off all the other debt you discharged in the bankruptcy!  What your attorney is talking about doing is filing a new chapter 13 to get relief on this cosigned lease.

How much are you on the hook for?  

[jkjklkjkl]

The discovery of the lease would seemingly confirm that you should've filed Ch 7, not the other way around, as a lease (being a leasee) is a liability, and not an asset.

[StartingOver10]

I agree with the above....something isn't right about what your attorney is doing.

Speak to a couple of different Bk attorney's - in addition to your previous attorney.

Make sure the attorney's are not prior trustee's and make sure they are not the large 'mill type' bankruptcy firms.  Get a knowledgeable Bk attorney in a smallish office to walk you through your options now. Make sure to bring your previous Bk with you so s/he can see exactly what is going on now and in the past. You can download your case from PACER if you don't have it readily available. GL

[MakeItAMudLight]

Definitely take the advice above about consulting other attorneys.  It sounds like your current attorney wants to have you file a new Ch 13 so that they can get a whole new round of fees again.  Re-opeing the previous case probably won't net him nearly as much.  It seems lots of bankruptcy attorney are happy to have you file again as they get paid twice and it's usally not as much work the second time.  

[Anonymous]

Sorry my response is so delayed but I recieved a collection letter from some attorneys representing the old lease that I co-signed for, so I contacted my BK attorney to make sure that they put it in my file!

[mynameainttracy]

I wonder if you could just send them a copy of your discharge paper and put this to bed.

[Anonymous]

These are good questions and yes it showed up on my report as discharged and paid for the BK but the problem is, the letter they sent is under a different name so the attorney is researching it now. It's a freaking mess and I hope this is able to get resolved, I really can't afford to kick out any extra money to fix this. I mean I will if I have to but I prefer not to because it already cost me a couple thousand.