Accounts Receivable at filing

[Ineedhelp2]

When are they taken?

As they are received? As some form of payment plan?

If they are not received is that reported and adjusted accordingly?

[mtbc]

That's an interesting question. My wife is owed $70k by somebody who has no money. I'm wondering how that'll affect our chapter 7!

[music12]

anything somebody else owes you is an asset of the bk estate. the trustee chooses whether to try collect from that person, or to abandon it. it's a judgment call on the trustee's part that would depend on how much effort the trustee would need to make to get money. if it's too hard, he'll just give up and abandon it.

[mtbc]

Once the trustee abandons it, if long after the case closes the debt does get paid -- what happens? Does the original creditor, the bankrupted person, get it? Or do they have to report it to the trustee who reopens the case or something?

[music12]

once the case gets closed, if the debt gets paid the bankrupted person gets to keep it. but ONLY if it was listed in the petition. if it wasn't listed in the petition, then even if the case is closed, this asset was never abandoned.