Is a debtor's failure to list a creditor for bankruptcy purposes invalid?

MultiRegion, United States of America

The following excerpt is from Gaulding, In re, 908 F.2d 976 (9th Cir. 1990):

A bankruptcy court is in origin and purpose a court of equity. It is, to be sure, a court created by statute and bound by statute. The equity it does cannot disregard the statutory limitations. Teamsters Local No. 310 v. Ingrum (In re Tucson Yellow Cab Co.), 789 F.2d 701, 704 (9th Cir.1986).

Under the statute, a debt will be discharged even if the debtor failed to schedule the creditor in time to permit a timely filing of proof of claim if "such creditor had notice or actual knowledge of the case in time for such timely filing and request." 11 U.S.C. Sec. 523(a)(3)(B). Thus the mere failure of the debtor to list a creditor does not excuse compliance with the statute if the creditor had actual notice of the bankruptcy proceedings in time to file a CTDD. Lompa v. Price (In re Price ), 871 F.2d 97, 99 (9th Cir.1989).

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