30 day club post no-distribution

[nicoj36]

What happens after a 341 and a report of no distribution by the trustee?

Does the case get reviewed by higher power like Panel Trustees/Judges before getting discharged?

Been worrying and having anxieties lately due to seeing other people get 2004 a few days before discharge. I even saw someone on Facebook get a 2004 two days before his discharge, and he also got his dates extended.

Just want to know what the process is after 341 and report of no distribution. Wish me luck.

Pro se, chapter 7, no asset.

[justbroke]

Pretty much the case just waits for the time to file a dischargeabilty complaint expires. That date is 60 days from the first scheduled 341 Meeting. The clerk's office at the bankruptcy court has case managers that monitor the case and docket. They will look for certain things and help manage the judge's caseload.

The discharge usually is issued automatically, by the Clerk's office, if everything looks okay on the docket. In fact, many districts use something known as "auto-discharge" which allows the system to automatically issue a discharge if there are no flags on the case. Flags are settings that the Clerk, Court, case Trustee, or the United States Trustee can set for a case to keep certain things from happening (such as an autodischarge).

In the majority of cases, there is nothing that prevents the discharge. Usually the only thing stopping discharge after the 60 days is if the United States Trustee (UST) or some creditor seeks dismissal or conversion. That's probably only in about 5% of cases and people know that their case has troubles usually by or at the 341 meeting. People that "know" of the trouble are the ones usually subjected to a Rule 2004 examination. Those 2004 examinations just don't happen that often. They are reserved for cases where the Trustee, UST or creditor must go beyond the schedules or dig deeper than what is allowed at the 341 Meeting of Creditors.

For most people, especially in a no asset, the case travels just as your case has traveled. File, then 341 Meeting about 30 days later, then report of no distribution, and then 60 days after the 341 meeting has happened... the discharge.

(There's an administrative portion known as closing. This may or may not happen immediately after discharge. The case may also auto-close, if your District does that. A case won't close until the Trustee files a report. If it is an asset case, it can take some time before closing. It's not unheard of to see an asset case take 1-2 years to close -- and sometimes more.)

[nicoj36]

Pretty much the case just waits for the time to file a dischargeabilty complaint expires. That date is 60 days from the first scheduled 341 Meeting. The clerk's office at the bankruptcy court has case managers that monitor the case and docket. They will look for certain things and help manage the judge's caseload.

The discharge usually is issued automatically, by the Clerk's office, if everything looks okay on the docket. In fact, many districts use something known as "auto-discharge" which allows the system to automatically issue a discharge if there are no flags on the case. Flags are settings that the Clerk, Court, case Trustee, or the United States Trustee can set for a case to keep certain things from happening (such as an autodischarge).

In the majority of cases, there is nothing that prevents the discharge. Usually the only thing stopping discharge after the 60 days is if the United States Trustee (UST) or some creditor seeks dismissal or conversion. That's probably only in about 5% of cases and people know that their case has troubles usually by or at the 341 meeting. People that "know" of the trouble are the ones usually subjected to a Rule 2004 examination. Those 2004 examinations just don't happen that often. They are reserved for cases where the Trustee, UST or creditor must go beyond the schedules or dig deeper than what is allowed at the 341 Meeting of Creditors.

For most people, especially in a no asset, the case travels just as your case has traveled. File, then 341 Meeting about 30 days later, then report of no distribution, and then 60 days after the 341 meeting has happened... the discharge.

(There's an administrative portion known as closing. This may or may not happen immediately after discharge. The case may also auto-close, if your District does that. A case won't close until the Trustee files a report. If it is an asset case, it can take some time before closing. It's not unheard of to see an asset case take 1-2 years to close -- and sometimes more.)

Thanks boss. Exactly what i want to hear lol. Looking at my docket, the only thing that was flag-checked two weeks after filing was one of my creditor's mailing address. I guess the notice they sent out was returned due to an incorrect creditor's address, which has been taken care of already.

Even knowing these kinds of information, its still hard to relax and think everything will be okay. Can't help to worry and have anxiety.

But thanks again.

[Ekop785]

My experience was just as Justbroke described. I had the 341, waited for the "objection to discharge" date to pass (there were no objections), then my case discharged and closed on the same day (so I assume this was an "auto" close). My anxiety was through the roof and it was for nothing. Everything went smoothly. Good luck!