Question about Discharge - very confused

[Vanda]

On Pacer it says I was discharged yesterday. However, the trustee's office said last week they were going to tell me how much I have to pay them, since I am an asset case. So, I am discharged but I still have no idea how much I have to pay before they close, am I understanding this? It seems so random, is this how it works?

[justbroke]

Discharge and Close are two different processes in a Bankruptcy Case. Since you're a Chapter 7, here's what it means to you.

Discharge occurs 60 days after the first scheduled Meeting of the Creditors (341 Meeting). The only way a discharge doesn't occur is if a creditor or Trustee (or other person in interest) files an objection to discharge. (That's generally speaking).

Close occurs after the Trustee has fully "administered" the case. In a no-asset case, this just means the Trustee files a report indicating that there was no distribution and that they want to be freed from administering the case. The case is then closed after the Judge signs off.

Close in an Asset case is different. The case cannot close until the case is fully administered. This means that the Trustee has sold all the non-exempt property, recovered money/property from fraudulent transfers, recovered money from insider payments, recovered money from preferential payments, recovered tax refund or other money from the debtor themselves. Once the Trustee has done that and disbursed all those funds, then the case can be closed. Similar to a no-asset case, the Trustee files a Distribution Report and an Audit with the Court. The Judge then signs off on it and the case is closed.

[Vanda]

difference between closed and discharged

Thanks, I do realize the difference but what has me confused is that they have not told me how much I have to pay, or how long I will have to make payments. I know they are entitled to my tax refund, but there is also an issue over some jewelry I bought and gave as a gift, and earlier they said I have too much equity in my car. I am elated, of course, that I appear to be discharged!

[justbroke]

Well, now the hard part.. getting to close.

The Trustee is probably real busy, but they will get you your number. Some people have waited a year (or more) for their case to be fully administered.

[Vanda]

I can hardly believe it. I have been a basket case. I didn't realize they could discharge before resolving the money issue. But at least we are getting there!

[AngelinaCatHub]

Hey Vonda, it could be worse. You could have been dismissed. You are freeeeee!!!

Victory for you and my hamster Victory dancers have been so rusty since their last use, so they happily dance for you.

http://video.google.com/videoplay?docid=-3894301868978665655