Discharged but ....

[Jefferson24]

Discharged 10/19/09, however there is still no trustee's report of no distribution. It was never filed. He did file that the 341 had been held but that's it. I called the attorney about 3 weeks ago, before the discharge, he said he would look into it. We never heard anything back from him. Is it safe to assume that it is too late for the trustee to act on anything at this point and it is simply something he has forgot to do? The only thing in question was a trust my wife co-owned but we explained it to the trustee at the 341 and he said he thought it would be fine and didn't pay it much attention. He even said it was fine to spend $10,000 out of it for my mother-in-law's medical expenses (the trust is for her care).

I'm assuming the actual closing won't happen until the trustee's report has been filed. Is that correct?

[Kingxray]

Are you getting this info from Pacer? Maybe the report of no distribution was filed but just not entered into Pacer? It could be as simple as just a clerical issue, but who knows. It seems strange that you would be discharged before that report was filed. I could be wrong but I would think the UST would require that report before closing to make sure there are no assets to be had. I'm sure someone on this forum with more knowledge than me will be able to help you with your question.

[GoodtoGo]

I am three days away from discharge (California), and was told not to expect anything for at least 60 days from the date primarily due to such a backlog in the courts.

I am interested in this "letter" date because as long as it is delayed, I will not be contacted by my mortgages (unless they files a Auto Relief of Stay). I was also told the Trustee makes the recommendation to the court for discharge if they find "No Assets" available. As long as you are past that date, and have not been challenged by creditors during the 60 days, you should be good to go. I will contact my attorney next week to make sure everything is good. I will also find out if there are any potential issues related to receiving the letter. I will try and update you with what I find.

[Jefferson24]

Yes, I am getting the info from Pacer. I don't think it's a back log issue, there were only 3 people at my 341. We sat around for a while before and only a few people came and went. I'm from Central Illinois.

[RackingJ]

Ours was the same, discharged on 10-16-09 and a report of no distribution wasn never entered on PACER either.

[music12]

discharge has the same effect (and more) as the report of no distribution: it automatically abandons the assets if the trustee hasn't specifically abandoned them before the discharge. so you're good to go.

[Jefferson24]

Update: This just got posted on Pacer on 11/5: Employment of Professional Objection Date Notice

Looks like the trustee wants to hire a professional (expert lawyer) to go after illegal or fraudulent transfers. He's after the trust my wife is 1/2 owner of.

Grandfather died and left the estate to be split among his kids. My wife's mother can't inherit the money because she is physically disabled and receiving disability. So mom defers the money to the kids and the kids defer the money to a trust that is established to take care of mom. My wife and her sister are the owners of the trust. Trustee thinks when my wife deferred her share of the inheritance she illegally sheltered money from the bankruptcy. The trust was set up 3.5 years ago. We were financially fine at the time the trust was established and continued to be until December of 08 when my wife lost her job.

Why did the trustee wait so long? We are already discharged....

We can object to the professional which I guess we'll do but this seems screwed up.

We have a call into our lawyer. He thought this might happen, he said at the time we originally talked about it that the trustee would have to prove we were insolvent at the time the trust was established and we transferred the money knowing that we would be filing bankruptcy 3 years later. Seems hard to prove. We actually paid off all of our credit cards 2.5 years ago with money from a second mortgage. All the debt we filed on has actually been accumulated since the trust was established, not before.

Any thoughts?