I have some questions about reopening a Chapter 7 “no asset” bankruptcy to add an unsecured debt that was unknown at the time of filing in 2016. I am the Personal Representative for my father’s Estate. My father received a discharge for his Chapter 7 bankruptcy in early 2017 and this included all known hospital bills and credit cards. There were no assets so there were no payments disbursed.
My father passed away in 2018 and The Maryland Department of Health has filed a claim against his Estate for $115,000 from services paid out in 2012 for his stroke. I am being told that since we had no way to know this Medicaid debt was owed and it is an unsecured debt, it was discharged during his bankruptcy.
Is Medicaid a dischargeable debt? Should I attempt to get the case reopened to add the debt? We reside in Maryland.
Cases do not need to be reopened in Maryland to have an unscheduled, unsecured debt discharged. This is the result of the decision in a case known as In re: Stecklow which stands for the proposition that in a no asset Chapter 7 filing, the innocent omission of an unsecured debt does not preclude that debt from being discharged. There are exceptions, however, and you should consult with a knowledgeable bankruptcy attorney to determine if this debt is one that would qualify for discharge.
Our Rating is calculated using information the lawyer has included on their profile in addition to the information we collect from state bar associations and other organizations that license legal professionals. Attorneys who claim their profiles and provide Avvo with more information tend to have a higher rating than those who do not.What determines Avvo Rating?Experience & background
Years licensed, work experience, educationLegal community recognition
Peer endorsements, associations, awardsLegal thought leadership
Publications, speaking engagementsDiscipline