Can someone explain what may or may not happen after 341 meeting?

[supertrucker]

Had my 341 meeting on Feb 8th. Trustee asked a number of questions about finances. I answered all of those questions. I guess I am a little confused what is next. He said he needed my tax return that I haven't filed yet. I didn't plan on filing until april 15th. Isn't that past the 60 days? What occurs after 60 days? I was just told by attorney it is over after 60 days. Does that even matter or am I obligated to provide that information? What happens if you don't? What do they do with that information?

[justbroke]

The discharge has nothing to do with the administration of the estate's assets. The Chapter 7 "panel" trustee, the one dealing with your case, is responsible for liquidating the estate and giving the creditors their share of the non-exempt property. As you know, non-exempt property is that which you could not protect with an exemption.

Your tax refund is, technically, property of the bankruptcy estate. The trustee wants to see your tax return to see if you are entitled to a tax refund. If you did not or could not exempt the refund, the trustee is entitled to take it on behalf of the creditors.

The Trustee can keep the case open for, literally, years to effectuate the administration (liquidation) of the assets that are not protected. Again, this has nothing to do with the discharge.

If you do not comply with any requests of the trustee, they can ask the court to deny your discharge (or even rescind an already granted discharge).

So yes, it is over, as far as a discharge is concerned, but it is definitely NOT over as far as administration of the estate (the case being closed) is concerned. I would comply. I would just file my taxes early and get it over with. Why are you waiting to file? Do you expect to owe money? If you do expect to owe money, the trustee will go away much quicker if you just file now and provide the copies.

[supertrucker]

I see, file now, pay whatever I pay and it is basically over with once I provide copies of the return? Sounds good.

[justbroke]

It reads as though you're a "no asset" case (meaning that there is really nothing for the Trustee to do). However the trustee wants to see if you're entitled to a refund (which would make it an asset case and then the trustee would have something to do). If you file now, there is no refund, and there are no other assets to administer, the trustee will file what's known as a notice of no distribution and will bow out from the case.

Then, after the 60 days following your 341 meeting, the case is ready to be discharged. That discharge could be automatically done by computer (in some districts). Then the case will close shortly thereafter if there are no assets to administer. How quickly it closes is also based on the specific district, whether they use "auto close", and whether or not they are backed up.

The short answer is: yes, if there is nothing else to do, then you will only need to wait out the 60 days.

[supertrucker]

I guess I am concerned about if I do have a refund am I able to pay off my student loan of $3300? I also borrowed $1200 from a family member to file bankruptcy. Not sure if that gets me any exemption? I believe it is a no asset case because I have no assets.

[justbroke]

I guess I am concerned about if I do have a refund am I able to pay off my student loan of $3300? I also borrowed $1200 from a family member to file bankruptcy. Not sure if that gets me any exemption? I believe it is a no asset case because I have no assets.

No. If there is a refund some portion of it (and maybe all of it) is subject to distribution to the unsecured creditors "pro rata". That means that the unsecured creditors would get their "fair share" of any distribution after all the priority creditors are paid (back taxes, prearranges, trustee fee).

It would only be a "no asset" case if this tax refund shows no refund due or you have exempted the total amount of any refund. A tax refund, which is non-exempt, is an asset.

You can always pay back any creditor that you want, after the bankruptcy is closed. Nothing would prevent you from paying back a family member. Student loan debt is "general unsecured" debt just like a credit card. They are not treated special in bankruptcy (other than being non-dischargeable).