Asset case in Chapter 7 bankruptcy - question about how best to handle situation

[ScaredGuy]

Hi guys, I've officially decided to file for a personal Chapter 7 bankruptcy due to the failure of a small business. Unfortunately, it's looking like my bankruptcy is going to be deemed an "asset" case because I have about $4,700 that will not be covered by exemptions. I have moved this $4,700 into a newly opened checking account with a bank who I have no debts with. My attorney said that the trustee might keep my case open after the discharge because of my case being an asset case. I was hoping that since the $4,700 that is not exempt is in the form of liquid cash in a checking account that shouldn't be frozen when the bankruptcy is filed, this will make it easier for the trustee to seize the $4,700 and distribute it to creditors. Is it not going to be that easy? Will my case drag on for 6 or even 12+ months because of a non-exempt $4,700?

[justbroke]

Your case would only drag on if the Trustee has to use process to collect property of the bankruptcy estate, liquidate that property, and then distribute to the creditors that filed claims.

The Trustee wouldn't "seize" the $4,700. The Trustee would simply ask you for a check. There are some not-so-nice Trustees in Florida that have had debtors write a check to the Trustee right at the 341 Meeting of Creditors. I don't think it happens often, but it can.

The quicker you surrender whatever amount the Trustee wants, the quicker your case will close.

But remember this--the discharge is the prize. The closing is administrative only. The discharge will come just 61+ days after the first scheduled 341 Meeting. It's that simple.