When did your trustee file the letter of no distribution?

[NoPaper]

I had my 341 meeting 6/28/24. My case was filed as a no asset case. I’ve heard some people say their trustee confirmed it as no asset during their 341 meeting. My trustee did not eat one way or another. I’ve been checking PACER and have yet to receive the letter of no distribution from the trustee. When did your trustee file it for your case?

[justbroke]

There is no way to measure based on what happened in another debtor's case. The Trustee will file once they determine that there are, in fact, no assets to administer. For example, did you--or your attorney--exempt your potential tax refund? There could be other reasons as well, such as you have a vehicle or real estate that the Trustee wants to do some research before issuing a No Asset Report. Trust me, the Trustee doesn't want to do any work on a no-asset case since they only make $60 on a no asset case!

Remember, just because you filed as a no asset case, doesn't mean that it is a no asset case. The Trustee should do their due diligence and then file their report once they have examined all potential assets.

Didn't you convert from a Chapter 13? I'm sure the Chapter 7 trustee is trying to figure out if any new assets entered the bankruptcy estate. For example, if your Chapter 13's "best interest of credit's test" (liquidation test) revealed that you would have paid a distribution in a Chapter 7, this liquidation test will pass to the Chapter 7. So if your Chapter 13 had a minimum liquidation value of $50,000 over the life of the Chapter 13 and you only paid $20,000 of it, then your converted case is an asset case.

Yes, it can get complex. I hope you filed with an attorney. Maybe they can check to see if your Chapter 13 had a liquidation value.

[NoPaper]

Thank you for the response!

I did convert, yes. My lawyers had mentioned since assets weren’t a problem in chapter 13 that chapter 7 would be fine. So maybe that means my liquidation test was passed? Is there a page of my petition that tells me this information?

Thanks

[justbroke]

No there's no real way to tell from the petition. If your attorney says that you didn't fail the liquidation test then you should be okay... unless. By unless, that is to say if you did have a liquidation value, but your DMI already covered that liquidation value. Think of the liquidation value, in a Chapter 13, as the minimum that you must pay into the plan despite any DMI. If the DMI meets that value then you are okay. If the DMI doesn't meet that value then you must pay more than just your DMI (excluding Trustee fees, attorney fees, secured debt, and other priority debt).

Your new Chapter 7 Trustee is likely just making sure all the numbers work.

[NoPaper]

I had a very low DMI when I first filed and then my wife lost her job so it went to $0. It was never mentioned to me that I had a minimum to pay based on assets that could possibly be liquidated in a Chapter 7. So hopefully that is a good sign? The letters from the trustee before my confirmation never mentioned anything of the sort. I don't have any "luxury" assets but I did have to use exemptions to cover equity in those assets.

The trustee making sure the numbers work seems pretty valid to me. Just nerve racking I suppose.

[justbroke]

That is a good sign. The fact that your DMI went to $0 suggests that you didn't have some minimum to meet.