You’d better list all debts in your bankruptcy case……

A recent 7th Circuit Case In re: Smith, No. 08-3358 (9/23/09). Appeal, N.D. Ill., E. Div. Affirmed ruled that is was permissible to let 2 civil action cases continue in state court (regarding sexual assault against debtor-physician) because the debtor did not list the debt on Schedule F of the bankruptcy petition. The creditors did not get notice until the debtor tried to transfer the case to the state court bankruptcy calendar about 2 weeks before the objection to dischargeability deadline in the bankruptcy case. The instant request was deemed proper because the creditors lacked timely notice of the bankruptcy filing, and the motion to transfer the cases to state court bankruptcy calendar did not give the creditor sufficient notice of the deadline to file an adversary objection in the bankruptcy case.

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Terrance Leeders

Chicago Bankruptcy Lawyer, husband, father, Cubs fan.

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