Asset Case - question out of curiosity

[ichb]

What happens if nobody files a claim in our asset case? Will the trustee still take all of the non-exempt portion of my husbands inheritance? And if so does anyone know if they then distribute it to all of the non-secured creditors?

I'm not particularly worried about it but the scenario popped into my head and I wondered what the procedure was.

[soleprop]

my understanding is that if there is no claim then there is no distribution. i'd wait for someone with experience to come to this thread and confirm, though. good luck!

[HHM]

I am not sure on the timeline...

But in the unlikely event that no creditor files a claim, at some point, the property is returned to the debtor, minus the trustee fee.

I have seen trustees extend the time for filing claims, but cases cannot stay open indefinitely; if no claims are filed, then there is no distribution, then the property must be returned to the debtor.

[AngelinaCat]

I can answer this in part. We filed 12/28/07, our 341 was 2/7/08. Our last day for Creditor Objections should have been in April. We were ruled an Asset case sometime in March, and the time-period for Creditor Objections was then extended until 6/12/08.

We have to make payments to the Trustee every month for one year, commencing 5/1/08. The payments are $450.00 (and it does hurt, but we are 1/3 rd done). Now, our major debt is to the IRS, so they will get whatever is left after the Trustee gets his cut.

Because of our IRS debt, there is little to no chance of getting any of it back. And that is okay too, as we have to pay IRS anyway. I would rather they not try to garnish anything. We had been on a payment plan, but it was stopped when they were notified of the BK.

Any of our unsecured creditors are very far down in the ‘pecking order’.

Good luck!