Switched from No Asset to Asset...

[struggling09]

The TT filed a report yesterday determining we are an Asset case. We were not able to protect my husband's personal injury award. Can someone please tell me what will happen now?

7/14 was day 60. The clerk filed a notice to all creditors notifying them that we may have assets to be distributed and they have until 10/16 to file a claim.

Does this mean we will not be discharged until after 10/16?

[laurannm]

In most if not all cases, being an asset case means the closing of your case will be held up until the assets are distributed. This should not though hold up your discharge

[AngelinaCatHub]

Yes it does mean you will have 30 more days added. I did not think they could go after insurance proceeds, but if this were a lawsuit and you got an award for other than the medical bills, (pain and injury) it could be used to pay creditors. Ours too was made an asset case after an insider payment was reconciled. 'Hub

[AngelinaCatHub]

In most if not all cases, being an asset case means the closing of your case will be held up until the assets are distributed. This should not though hold up your discharge

Sorry Laurannm, but I was posting as you were, but they will have an extended 30. Our case is still not closed and it is going on two years. 'Hub

[struggling09]

Just so I understand this correctly, we will have an additional 30 days before our case is discharged? And our case will close once assets are distributed???

[AngelinaCat]

In our case, when we were ruled an asset case, an additional 60 days was tacked on making our Discharge in the middle of June instead of mid April. So, yes, I believe that you will not be discharged until after Oct. 16.

[LuciluS]

O Struggling - I feel for you two. I haven't read your past posts, but did you have an BK Attorney?

I was involved in an accident in 2005 and our BK Attorney told me to get the case settled & disbursed before we filed BK. So I called my other Attorney and told him to get the lawsuit settled and I got a measly $5,000 on an auto accident of which now I'm 100% disabled.

If you have a different Attorney on the lawsuit, I suggest you call him and explain the situation and tell him to start making an Offer to whomever your hubby's lawsuit is against.

Just my thoughts.

Luci

[struggling09]

Yes, have a bk attorney and a separate attorney who handled personal injury lawsuit. We were honest upfront about everything with both attorneys and TT. We knew there was a chance going in that we may have to surrender the p/i award. However the TT made no mention of it at the 341, 7/14 was day 60 for objections and we thought we were in the clear. TT yesterday files report to change us to an Asset case. Very disappointing!!! More so that it delays our discharge!!!!