Time between dicharge & closing?

[Gracious]

Please tell me what or why there is a fairly long time of about 2 months between discharge and closing? If I work and make commissions during this time period do I have to give up some or all of it? What is this time lag for?

[JRScott]

Depends on your district or position.

In asset cases the time between discharge and closing is generally the trustee selling the assets and then distributing proceeds to creditors who filed a claim in the 60 day window.

It would have no claim on earnings earned after the discharge provided you didn't have a huge pay raise.

It could also be that your particular district is overwhelmed and the clerk thus is behind in his paperwork.

[mtbc]

When might there be a claim on earnings earned after filing and before discharge? I thought money earned after filing was generally clear of the bankruptcy? Or are you thinking of when it's so much that it brings chapter 7 eligibility into question?

[JRScott]

I was indeed thinking of when the income increase is so significant that the trustee could argue a totality of circumstance and move to dismiss a 7 or have it converted to a 13.