Does this mean im winning?

[bornfree2]

Chapter 7 Trustee's Report of No Distribution: I,____ (TR), having been appointed trustee of the estate of the above-named debtor(s), report that I have neither received any property nor paid any money on account of this estate; that I have made a diligent inquiry into the financial affairs of the debtor(s) and the location of the property belonging to the estate; and that there is no property available for distribution from the estate over and above that exempted by law. Pursuant to Fed R Bank P 5009, I hereby certify that the estate of the above-named debtor(s) has been fully administered. I request that I be discharged from any further duties as trustee....

According to my research this is good news no? Means the case is formalized as no-asset and discharge is coming soon if no objections? And it will still need to close formally.

[justbroke]

The discharge should come, with due haste, after 60 days have elapsed from the first scheduled 341 Meeting of Creditors. For a no-asset case, closing is a simple formality since there is nothing for the Chapter 7 Trustee to administer. In fact, the Trustee filing a Report of No Distribution and seeking to be dismissed from the case, means that the close should come quickly after the discharge.

So long as the debtor has correctly filed their Financial Management class affidavit an certificate before the date that a discharge is scheduled to be entered, the discharge should come with all due haste, followed by a close. In some districts, an autodischarge and autoclose could also happen.

[bornfree2]

Does this technically mean all property that was in limbo I am now able to sell to pay bills? Or does trustee still have the 30 days after 341 meeting conclusion to object to exemptions? Or put another way, can trustee 'un-abandon property of the estate'.

In what other ways can some other party intervene to mess this up. Ive done the second course and filed it.

From what im reading this looks like everything got exempted ... which is just what i fought so hard for.

[justbroke]

Nothing stopped you from paying bills or taking any action with certain property. The only thing that usually precludes someone from selling property, prior to the 341 Meeting in a Chapter 7, is that it's a vehicle, boat, home, or other significant property that may not have exemptions.

The bankruptcy code never stops any debtor from continuing to buy food, clothing, or continue operating a business.

Generally the Trustee would not have filed a Report of No Distribution if they think exemptions are wrong. If they thought exemptions were wrong or subject to challenge, they wouldn't ask to be excused. The Report of No Distribution means that the Trustee has not found anything to administer, liquidate, and distribute.

I don't know what you mean by "fought so hard for." Something is either exempt, partially exempt, or not exempt. In some States, such as California, the exemptions are generous and protect a lot of personal property. In Florida the exemptions are horrible, despite being able to exempt an $8,000,000 mansion. In Florida, we can't protect that much property, so generally everything, including a car, must fit into either $1,000, $2,000, or $5,000 (depending on whether the homestead exemption is used).

As I have written here on BKForum many many times over the years, a supermajority of Chapter 7 cases flow through with 0 issues and as no-asset cases. I believe that number is between 90-95% of all Chapter 7 cases. This means that only about 5-10 in 100 cases get scrutinized to the point where exemptions are an issue, or there are questions as to whether it should be a Chapter 13.

But for nearly everyone that is under-the-median, none of these things are an issue. They flow through as no-asset cases with a standard discharge within about 90 days of having filed. The Chapter 7 Trustees now this and they won't dwell on these cases... now will the United States Trustee (UST).

Now, if the UST was at your 341 Meeting, that could mean they are interested in your case. By interested, that means they would take a closer look at your eligibility for a Chapter 7 discharge... not your exemptions. The general rule is that if the UST wasn't at your 341 Meeting or asking for documentations prior to or during that meeting, then the UST is not interested in your case.

For most people, I would have just written "Welcome to Club Sixty" (aka the 60-day waiting period for the discharge and close). In your case, you requested more detail, but it's really a "just wait the 60 days" for those that are under-the-median income (with no assets).

[bornfree2]

Nothing stopped you from paying bills or taking any action with certain property. The only thing that usually precludes someone from selling property, prior to the 341 Meeting in a Chapter 7, is that it's a vehicle, boat, home, or other significant property that may not have exemptions.

I was under the impression that everything gets transferred over to the estate so getting cash from an account to meet rent was 'in the grey area' until the exemption/objection period or case is over. Well guess that means i can meet my may rent and SLEEP BETTER.

It has been a fight. You may think it was a dime a dozen no-asset case and of course that is proving to be true here (thank God).

But it has been an ordeal and half since landing on this site a year ago. Keep in mind COVID was a thing back then affecting rent, jobs, and the courthouse. From battling with the creditors doing my own case, to filing BK and stopping them with the Automatic Stay at trial, to doing this BK with extreme care, yeah im pretty damn proud of the fight i put up. And I give God all the Glory. (as I said many times God is the best defense money cant buy)

And im thankful to you justbroke and the others on here who put up with my rollercoaster emotions and provided sound wisdom and a confidence to take this on myself.

I cant believe this will soon be over and i will be free from the bondage of debt. I have new horizons - enrolling in a paralegal school to start my legal career. There are very many 'little guys' out there that deserve justice. It just takes knowledge and determination.

Glad to be part of Club 60 finally

[justbroke]

I was under the impression that everything gets transferred over to the estate so getting cash from an account to meet rent was 'in the grey area' until the exemption/objection period or case is over. Well guess that means i can meet my may rent and SLEEP BETTER.

Technically yes. But you must still live so the code allows you to continue to do certain things. Generally speaking, you could sell personal property -- other than a home, car, or other major asset -- during the pendancy of your Chapter 7. That is if you have used appropriate exemptions. When filing with an attorney, the attorney will generally know which exemptions to use and won't make a mistake. For example, in some States the State-based exemptions may allow exemption of any personal property to a significant amount, but at the same time restricting that exemption to a much lower amount of cash. That's where knowing the exemptions is good.

At the end of the day, you still need to feed yourself, and protect your family. Always do that first and then deal with any issues with the exemptions. (I say that with the same exception that you should never sell ca car, home, or other significant property without the Trustee abandoning the property or the case has closed.)

It has been a fight. You may think it was a dime a dozen no-asset case and of course that is proving to be true here (thank God).

I think that 95% of cases are such. Especially in an under-the-median income case. These flow through so simply that most people exit thinking "wow, that wasn't what I expected."

The marginal 5% of cases have real issues. Those cases usually have issues with trying to use exemptions that don't apply. Other issues include understating property value on something like a car or home and the Trustee catches it. Or, also in the marginal 5% of cases, overstating expenses and/or exceeding expense guidelines in certain categories to try to avoid a Chapter 13.

But it has been an ordeal and half since landing on this site a year ago. Keep in mind COVID was a thing back then affecting rent, jobs, and the courthouse. From battling with the creditors doing my own case, to filing BK and stopping them with the Automatic Stay at trial, to doing this BK with extreme care, yeah im pretty damn proud of the fight i put up. And I give God all the Glory. (as I said many times God is the best defense money cant buy)

I too thought it would be a battle, when I converted form Chapter 13 to Chapter 7, but the only battle was with 2 creditors. They both ended up settling for violating the stay.

I think that everyone goes in looking at the marginal cases, the exceptions to the general rule. Don't look to those for inspiration. Look to the actual average no-asset cases. If you are an over-the-median asset case, that requires more care.

And im thankful to you justbroke and the others on here who put up with my rollercoaster emotions and provided sound wisdom and a confidence to take this on myself.

It is a roller coaster. I repeat it here, again, that I felt the most relieved after filing my case at the courthouse. I had $20 in my pocket and needed about $30 to get home. But I spent $12 of it to go about 5 miles, and then made a collect call to have someone come pick me up. I had $8 but felt great!

Just 7 days later, I needed new tires on the car. C'est la vie!

I cant believe this will soon be over and i will be free from the bondage of debt. I have new horizons - enrolling in a paralegal school to start my legal career. There are very many 'little guys' out there that deserve justice. It just takes knowledge and determination.

What I was trying to convey, early in this journey, was that Bankruptcy is actually the equalizer. It protects the little guy from the big guy trying to collect. I learned this quickly with the power of the automatic stay. A creditor kept billing me and I filed a adversary proceeding (AP/complaint) in the bankruptcy. I won, and a settlement was reached.

Glad to be part of Club 60 finally

Now, as we say, lay low and wait. Nothing should happen. Try to keep yourself busy and not think about it. Then, about a week before your 60 days are up, come here and we can try to keep your mind off the discharge!