g. Debts From Embezzlement, Larceny, or Breach of Fiduciary Duty
A debt incurred as a result of embezzlement, larceny, or breach of fiduciary duty is not dischargeable if the creditor successfully objects to its discharge. “Embezzlement†means taking property entrusted to you for another and using it for yourself. “Larceny†is another word for theft, “Breach of fiduciary duty†is the failure to live up to a duty of trust you owe someone, based on a relationship where you’re required to manage property or money for another, or where your relationship is a close and confidential one. Common fiduciary relationships include those between:
- business partners
- attorney and client
- estate executor and beneficiary
- in-home care giver and recipient of services
- guardian and ward, and
- husband and wife.
19. What happens to any debts or creditors that I don’t list on my bankruptcy?
The most important part of the bankruptcy process is to make sure that your paperwork is complete. Your bankruptcy lawyer is not a mind reader, he does not have a crystal ball and he does not know who your creditors are. If you don’t list your debts on your bankruptcy petition, then there is a good chance that this debt won’t be wiped out. The bankruptcy law requires you to list all of your creditors on your bankruptcy papers and provide their most current addresses. This information  gives the court some assurance that everyone who needs to know about your bankruptcy will receive notice. As long as you do your part, the debt will be discharged . Even if the official notice fails to reach the creditor for some reason beyond your control, the debt will still be wiped out
20. What will happen if an creditor pops up after bankruptcy?
If a creditor comes out of the woodwork after your bankruptcy case is closed, then you can always file a motion to reopen your case. If your application to reopen is granted, then you can file an application to amend the bankruptcy schedules, and add any omitted debts. Unfortunately, it can be expensive to reopen up a case. The filing fees alone to file a motion to reopen a case are $250. Moreover, your lawyer will also have to file a motion. A typical motion to reopen takes at least 5 to 15 hours of attorney time. Therefore, the costs to prepare and litigate a motion to reopen can be as expensive if not more than the costs of the original case. However, if the omitted debt is significant, then it pays to reopen up the case.
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