A debt is "provided for" by a Chapter 13 plan where the plan acknowledges the debt, even if the plan does not propose to make any payments on the claim. But, for the debt to be discharged, the creditor does need to receive proper notice of the bankruptcy proceeding. If a creditor is omitted and does not receive notice, the debt will not be discharged in the bankruptcy.
The court has stated, a creditor needs to receive sufficient notice in order to be considered provided for in the plan. 11 U.S.C. ยง 342(a) provides that "[t]here shall be given such notice as is appropriate ... of an order for relief in a case under this title."
The burden of establishing that a creditor has received appropriate notice rests with the debtor. Creditors have a right to adequate notice and the opportunity to participate in the proceedings in a meaningful way. Being able to participate in the bankruptcy is of the upmost importance to the creditors. The creditors need to be afforded the opportunity to protect their interests.
While, it is not in the best interest of either party, the unintentional omission of a creditor may occasionally happen. If a creditor is unintentionally not provided with proper notice of the bankruptcy filing, it is important for the debtor to provide the creditor with notice of the filing as soon as possible.
It is vital that creditors in a chapter 13 bankruptcy filing are provided for in the plan and receive proper notice of the bankruptcy filing. But, occasionally creditors are not provided adequate notice of the filing. To receive a discharge of the debt, the debtor should provide proper notice of the bankruptcy filing to the creditor as soon as they learn about their omission. Contact the attorneys at LifeBackLaw and see us at www.LifeBackLaw.com and let us help you get your life back.