The Significance of Closing an Asset Case

[ready2puke]

What happens in a Chapter 7 Asset case where the property is really hard to sell, the case stays open, and then I get an inheritance the wasn't in the cards when I filed...Can they take that?
Thanks..

[backtoschool]

What happens in a Chapter 7 Asset case where the property is really hard to sell, the case stays open, and then I get an inheritance the wasn't in the cards when I filed...Can they take that?
Thanks..

If the inheritance or the death that resulted in the inheritance happens within 180 days of when you filed your petition, then that inheritance is property of the bankruptcy estate, minus any exemptions you can apply to it.

[ready2puke]

Thanks I didn't know if that time frame still applied if there was assets involved and the case was still open..thanks...
BTW congrats on your closing why did it take so long? almost a year yicks..

[want2save]

Here's an idea of the timing in an asset case. I filed in May 2009. I was discharged in Sept 2009. (Asset case). I bought back my car and van. My motor home was sold long ago by the Trustee. In May 2010 a Final Report was filed showing my house, bank accounts and IRAS as DA. In June the Court allowed the Trustee to be paid and the creditors as well. It is now August 2010 and I am STILL waiting for closing.

[lowdoughshow]

i have an asset case that has several properties and the trustee is looking into all of them including our primary res. How do we know at what point he will try to seel our house?

[angles]

lowdoughtshow, you should already have a pretty good idea on what he will sell based on your exemptions and the value of your residence. if there is no money to be made for the BK estate he will abandon the property and move on.

[lowdoughshow]

thanks angles. but at what point does he walk. does he try to sell to get $1K , $10K ??? he is sending anpther RE agent, they might say its worth more than it can sell for...on the edge of my seat....very anxious ya now

[angles]

Technically he does not abandon an asset until the case closes. I have heard that most Trustees don’t like to take a personal residence unless it clearly shows money to be made. The reason for this is if they do they will be putting someone’s family on the street.

I don’t know if this bit of info will help, but after we filed our house value went up about 10K and I was really worried the Trustee would take it. Our attorney advised us that the value is based off of the time we filed, not its current worth. It has since gone back down but had me a little worried for a bit.

[aandjw]

We are awaiting a final report in an asset case - we filed in February 2010, turned into an asset case, paid the trustee $10K for the questioned assets, and that agreement was approved by the court. Discharged in October 2010, and the last filing was a notice of what the trustee wants for his time (that was February 7th). When will I see (or will I see) I final report from the UST? and the money out to the unsecured creditors? Just nervous......

[angles]

Aandjw, I don’t have an answer for you but it appears that we are in the same boat as you but further behind. Based on your experience what was the process the trustee used to ask for the 10K? Did you own all the assets and it was simply a buy out....and did you negotiate the amount you would pay?

I would not be nervous because at this point the Trustee has what he wants and is now in the distribution phase. He is basically done looking at you and is moving on.

[aandjw]

Aandjw, I don’t have an answer for you but it appears that we are in the same boat as you but further behind. Based on your experience what was the process the trustee used to ask for the 10K? Did you own all the assets and it was simply a buy out....and did you negotiate the amount you would pay?

I would not be nervous because at this point the Trustee has what he wants and is now in the distribution phase. He is basically done looking at you and is moving on.

We were going to negotiate with the trustee, but his offer was $10K, and one asset by itself had that value to us - so to get him to abandon ALL interests it was well worth it (he was looking at my business and monies that were in trust for clients - getting complicated and messy). This was a nit-picking dude - I guess I understand it because he has many people that he is responsible to - but it was very scary - 3 times in front of him. We nick-named him Mr. Poopy Pants - it was appropriate.

I guess I am just really jumpy about all this - 1 year since filing - and no final report.....

[angles]

Thanks for your reply aandjw.

[CCsAreEvil]

Yeah, our case is still open after 1 1/2 years now. We filed in Sept 2009. Creditors did file claims but that all happened around Aug 2010. Only thing they got was our tax refund. I really can't believe how long it takes for an asset case to take its course. Still waiting for that final "close" status.

[boomerkae]

Wow - I am looking like an asset case (that's what the trustee is calling me now at least) and didn't know it could take so long. For those of you owing 10K - how in the world did you come up with the money?

[branainaz]

I am an asset case. Discharged in June 2010. Have been denied twice for a HAMP loan modification, partly due to mortgage co. insisting I am in active bankruptcy. The TT not abandoning the assets is an ongoing financial burden.
Can I file a motion to compel abandonment or does this need to be done by an Atty.?
If it is DIY where do I go for instructions and forms?