Mistake in Trustee No Report

[ASecondChanc]

Hello, forum. Can I ask for some advice?

I filed Chapter 7 voluntary, no asset. I had my 341. It went well. A little while before the 341, I received a new bill, so we filed an amendment to the creditor matrix adding that creditor.

OK, the trustee just filed this report:

"Chapter 7 Trustee's Report of No Distribution: I, XXX,having been appointed trustee of the estate of the above-named debtor(s), report that I have neither received any property nor paid any money on account of this estate; that I have made a diligent inquiry into the financial affairs of the debtor(s) and the location of the property belonging to the estate; and that there is no property available for distribution from the estate over and above that exempted by law. Pursuant to Fed R Bank P 5009, I hereby certify that the estate of the above-named debtor(s) has been fully administered. I request that I be discharged from any further duties as trustee. Key information about this case as reported in schedules filed by the debtor(s) or otherwise found in the case record: This case was pending for 1 months. Assets Abandoned: $ 0.00, Assets Exempt: $ XXX, Claims Scheduled: $ XXX, Claims Asserted: Not Applicable, Claims scheduled to be discharged without payment: $ XXX. filed by XXX on behalf of XXX"

OK, here's the issue. When the trustee filed this report (good news), either they or my attorney made a mistake. The amount shown as claims asserted is adding only the priority taxes shown in the original filing and the AMENDED creditor matrix.

In amending the creditor matrix, my attorney's office only added the one creditor, noted amended, but did not refile a summary of schedules or refile the entire creditor Schedule F. So, the trustee's office would have had to figure out the math.

OK, perhaps this is just a clerical mistake, and easily solveable, but I am now concerned that my process will get dragged out now for all the back and forth refilings or that the claims not being included (in the original filing) will not get exempt.

Does anyone have advice or experience with this? I called my attorney in a panic as well, of course.

Should we refile the entire Schedule F, including that late addition, with a new summary? Or call the trustee's office to walk them thru the correct math?

Thanks!

[DebtEnder]

If your schedules are correct I would not worry about it. The trustee did not get the debt amount right on mine as well. Hell I was not 100% sure what my debt level was due to some family issues.

So long as the creditors are listed you should not have any issues down the road. The amount of debt in a CH7 really does not matter aside from some extra looking into by a UST. CH13 is a different matter.

[ASecondChanc]

Thanks for the reply. I'm not sure what supercedes what.

My original Schedule F of Creditors was correct. Then the paralegal filed an amended Schedule F showing showing the ADDITIONAL creditor.

The trustee only took the additional creditor (as the amended Schedule F) in his No Asset Distribution comment. I just feel uncomfortable given it's a bit sloppy that his comment was based on a clerical mistake.

I'm not sure if it was the trustee's office mistake or my lawyers' office mistake (maybe we should have filed a completely amended Schedule F with a new summary creditor matrix).

Sigh. In these days of high nervousness, I am glad that the trustee agreed that I am a no asset/no distribution case, but now I'm locked into this clerical mistake and biting my fingernails.

I hope the discharge in the end and closing is based on the "truth" and I'm not bogged down by this mistake

If anyone had to amend your creditor matrix before the 341, did you refile the entire Schedule F rather than just add (otherwise, you may have run into my same problem).

[DebtEnder]

I added two creditors, just filed an amendment. The trustee is only looking for assets. He's not really all that concerned with the debt amount. Stop worrying about it.

The only time the amount of debt matters in a chapter 7 for the most part is with assets disbursement, which is based on the CREDITORS filing claims. Not you. It's on the creditors to tell the trustee the amount that is owed so they can get a piece of the pie. If you have no assets, it has no bearing.

[music12]

when a trustee files a report of no distribution, the amount entered under claims scheduled to be discharged (as well as all other amounts in this report) are automated. that means that the machine - pacer - puts in the amount. the trustee doesn't even look. they don't have time. the only thing important about the report of no distribution is that the trustee decided that no payments are to be made and there is nothing to distribute.

so don't even worry about it.

[ASecondChanc]

Thanks for the replies. Actually, given my state of nerves, I'm even more nervous if you say the numbers are from PACER automatically.

What does that imply for my discharge process? There was over $1 million in debt to be released, and the amendment added $100k. So, this mistake (it looks like my lawyer's office) makes it look like I am being released from only $100k, instead of $1.1 million. Isn't this so serious a mistake?

The original creditor matrix and filing had the full amount, it was just that the amendment to add the creditor just filed a schedule F showing an additional creditor, instead of refiling a complete Schedule F with a summary grid. The docket schedule shows that the second Schedule F was for "an additional creditor", so a layman could see where the clerical mistake was.

But, if this system is automatic, then it would look like PACER now has only the last creditor and erased the whole batch of original creditors (the mailing labels for creditors appears correct, with the original creditors though)

Sorry, for belaboring this, but for this mistake of my lawyers, what should have been a good day (hearing about a no asset confirmation) is just giving me a bunch of nerves.

Did anyone have the discharge process where you had to fix up this kind of mistake? What did you have to do? Did the trustee or creditor try to undermine the trustee's report of no distribution because of such a glaring clerical mistake?

[DebtEnder]

You have no assets so paying back 0% of a million or 0% of a thousand dollars equals the same. 0 dollars.

Amount of the debt in a chapter 7 has no bearing save closer looking into by the US trustee. (if you have not heard from him GREAT!!!)

If you really want dl all your court documents off pacer. I did. If all your creditors are listed on the matrix or as an amendment. Then they got notice of the BK. Chapter 7 discharges ALL debt save student loan, criminal fines and a child/domestic support type issues with just a few exceptions.

The panel trustee you saw at the hearing is not the one who you have to worry about. It's the UST who can cause issues. If you have no word from him. Relax your fine.

[ASecondChanc]

Thanks, I did not hear from the UST and my lawyer thinks there is a minimal, if not zero percent chance, that we will hear from the UST given my case.

So, everything looks so fine... of course, I'll obsess about what could go wrong, particularly for something that had nothing to do with me.

Yes, the original creditors got their mailing and was part of the Schedule F. But, there does seem a clerical problem with amending Schedule F. Some may think that you can only file what is "additional", as that was my lawyer's office did, if you need to add a creditor after the original filing.

Yet, if what you said is correct, that the Panel Trustee's office just pulled what is officially in PACER, then that system will only read the latest Schedule F (if filed only without a new summary schedule). I think a word to the wise, for anyone who has to amend or add any new creditors, is to file a completely new Schedule F (old and new creditors) with a new summary schedule, to be abundantly clear.... I guess.

One last question... I am not overly concerned with the Panel Trustee or even the UST, if he were to get involved, as there's nothing under my rug so to say... I'm more concerned about the discharge process:

What I mean is that, based on your experience, how does the actual end discharge happen? In my case, could some creditors quibble that they are not discharged because the amended Schedule F did not include them and point to that panel trustee's report? Or, at the discharge/closing process, does the judge and my attorney cross-check each creditor?

If left at default status, I think the paper work could be interpreted either way, as to whether the original creditors listed on Schedule F are to be discharged, no? Do you think we should refile the entire Schedule F again with a new schedule? Or does that trip up new "timelines" and set off all kinds of bells and whistles I don't know about?

Thanks, sorry to belabor this, you can tell I'm a bit nervous about this silly clerical mistake.

[DebtEnder]

It's not really a clerical "mistake" it's just the way the computer report works. If the creditor is listed somewhere on the BL paperwork then there is not much they can do.

Even if you DID forget one based on prior rulings if it was just a simple omission the courts still says it's discharged or worst case you reopen the case later and add them if they are not there at all. Most creditors will not go near you with a BK filing as if they end up in the wrong and pursue it anyways they can suffer heavy fines and penalties.

[aljohnson007]

You have nothing to worry about. As long as the creditor was on your mailing matrix, notification happened.

[ASecondChanc]

You have nothing to worry about. As long as the creditor was on your mailing matrix, notification happened.

Thank you, and the other responder. Funny thing this process. Everything is going well, you two tell me not to worry... and I worry.

Oh well. I hope to write a successful closing/discharge in 45 days or so.

Thanks!