Trustee send letter of demand for payment almost 3 yrs. after discharge

[Turtle]

Hi,

I hope someone can offer some advice.

We filed ch. 7 bankruptcy amost 3 years ago. It was discharged iin Nov. 2006. A few weeks ago we received a letter from the trustee demanding payment of $650. for our old vehicle (which didn't run and was hauled away over a year ago). We contacted the law firm that handled our case and the attorney said the trustee could do this, even though it has been discharged. He said the case remains open for 3 years. Is this right? We thought it was over. We don't have $650. and it is putting a huge strain on us financially. The trustee said payment is due in full by Dec. 23, 2008. Does anyone know what will happen if we can't pay this (which we really can't). They said they don't take payments. I wish we would have had a little more time to plan for this. We just had no idea. It literally came out of nowhere!

Thanks for your help!

[HHM]

1. Yes, the trustee can do that, but it is a long time to keep a case open. Were there other assets in your case aside from this junker vehicle?

2. Options
a. Contact the trustee and request a payment plan and see if he will accept.
b. Pay the money.
c. Dispute the amount (which may be hard, most cars will salvage for more than $650)

3. Consequences.
a. If you do nothing and don't pay, the trustee will revoke your discharge and dismiss your case.

[justbroke]

The only other folks I've read about on this forum are AngelinaCat and 'Hub which have an Adversarial Proceeding still keeping their case open. They are already discharged.

I would contact the Trustee immediately and try to work something out. The Trustee can move the court to Vacate your Discharge Order... meaning... it's like you never got your Discharge.

I see you filed with a lawyer. I wonder why it was never monitored to figure out why it was still open.

[jessegirl]

Can someone please explain this to me. If i am understand this right, was there case discharged, BUT never CLOSED??? I thought once the case is discharged and closed its done right or wrong?

[justbroke]

Can someone please explain this to me. If i am understand this right, was there case discharged, BUT never CLOSED??? I thought once the case is discharged and closed its done right or wrong?

Discharge and Close are two separate actions. It appears that this case was discharged, but not closed. A case can stay open (not closed) until the Estate is settled. In an Asset case, this (closing) usually takes months, not years.

This appears to be a unique case. I don't know why their case was held open, but it is usually due to the disposition of an asset. The disposition of the car itself, may have kept it open all this time.

[jessegirl]

Oh, ok I was starting to sweat bullets thinking that even after the case is closed that they can still keep coming after you.

[justbroke]

Oh, ok I was starting to sweat bullets thinking that even after the case is closed that they can still keep coming after you.

Well... they can re-open a closed case if it is found that Assets were hidden or otherwise not part of the Estate.

Can it happen? Yes.

Is it likely to happen after close? No.

[Turtle]

Thankyou so much for your replys.

I have another question. Would it be better to contact the trustee directly or have our attorney contact her? We went through a big nationwide firm that only does bankruptcies and the attorney that handled our case isn't there anymore. We just called them when we got the letter of demand and someone looked our case up for us.

[AngelinaCatHub]

Thankyou so much for your replys.

I have another question. Would it be better to contact the trustee directly or have our attorney contact her? We went through a big nationwide firm that only does bankruptcies and the attorney that handled our case isn't there anymore. We just called them when we got the letter of demand and someone looked our case up for us.

You are still technically represented by a lawyer (law firm), but I think if you declared yourself pro se or gave permission that he could talk to you. (You are the altimate authority in your own case) Then ask him to be "realistic" it is the Holiday season and you have kids and short notice. $650 isn't much in their eyes, but I too wonder why your case was held open so long and that it took so long to find out about a junk car. Is there more to this than you told? 'Hub

[Turtle]

We ended up filing bankruptcy after my husband was diagnosed with cancer and medical bills left us drowning in debt. We have 6 kids, five are still living at home...they're minors. My husband and I both work full time so I suppose on paper it looks like we should be able to make it. We just find ourselves struggling to make ends meet.

It's been a few years ago so I can't remember all the details but I seem to remember the trustee attempting to get funds from my husbands retirement account. (He is a about 10 years from retiring). The attorney was able to keep her from getting that money.

Our oldest (19 at the time) was living at home when we filed and that seemed to annoy the trustee. She wanted to know if he had some deficiency or disability. He doesn't but his girlfriend was terminally ill (she has since passed away) and we let him live at home because he was going through such a tough time. He didn't work and he didn't contribute anything (financially) to our household.

We are buying our home. I guess that's my worst fear, that the trustee will find a way to take our home! I'm afraid to even ask if that's a possibility. Is it?

[AngelinaCatHub]

We ended up filing bankruptcy after my husband was diagnosed with cancer and medical bills left us drowning in debt. We have 6 kids, five are still living at home...they're minors. My husband and I both work full time so I suppose on paper it looks like we should be able to make it. We just find ourselves struggling to make ends meet.

It's been a few years ago so I can't remember all the details but I seem to remember the trustee attempting to get funds from my husbands retirement account. (He is a about 10 years from retiring). The attorney was able to keep her from getting that money.

Our oldest (19 at the time) was living at home when we filed and that seemed to annoy the trustee. She wanted to know if he had some deficiency or disability. He doesn't but his girlfriend was terminally ill (she has since passed away) and we let him live at home because he was going through such a tough time. He didn't work and he didn't contribute anything (financially) to our household.

We are buying our home. I guess that's my worst fear, that the trustee will find a way to take our home! I'm afraid to even ask if that's a possibility. Is it?

It seems this Trustee has a particular problem with you folks. You might wish to pro se make a motion to the Court to close your case, dismiss this assessment, due to hardship. Worth a try. 'Hub

[Turtle]

It seems this Trustee has a particular problem with you folks. 'Hub

It did seem that way.

I have made some notes and at least I feel I have some avenues to explore now. Thanks again for all your comments! I appreciate it.

[debtmonster]

Our oldest (19 at the time) was living at home when we filed and that seemed to annoy the trustee. She wanted to know if he had some deficiency or disability. He doesn't but his girlfriend was terminally ill (she has since passed away) and we let him live at home because he was going through such a tough time. He didn't work and he didn't contribute anything (financially) to our household.

That trustee has BALLS. 19 is still just a kid!! What do these people expect that you can go get a $6.50/hr. job and afford an $800/mo. apartment and $300/mo. car payment on that along with a $150/mo. electric bill, $50 phone bill, $150 for food... etc... etc... all on a starter income?

That trustee is WAY out in left field and is not realistic at all. I lived with my mom until I was 21 making $5.50/hr. I was only able to afford $200/mo. to pay towards the rent to her. I couldn't have dreamed of living on my own. I eventually got married and me and the young wife split the bills at our low paying jobs while we lived in a small efficiency from somebody who converted their garage into a spare room.

[danaf]

Wow - this is crazy. I second the poster who said to make a motion to the judge to close your case. Sounds like a trustee who is way out there, given the facts you've provided.