The Significance of Closing an Asset Case

[ellis2156]

Correct me if I am wrong. If I read all this right, i come to understand that after the 'discharge' arrives from the trustee, you can apply for a credit card, loans etc. and/or buy things that are costly (fridges for example) but you can't sell anything (homes,cars) until you get a letter of closure from the Trustee.

[justbroke]

Technically, yes. That is the case unless the Trustee has specifically abandoned your real and other personal property, your case is dismissed, or the closing comes; whichever occurs first.

[Jcg23]

We filed for chapter 7 in Jan and ended up an asset case primarily due to our expected tax return (~$2800, of which 2K is standard "child credit"). Received our discharge notice a few days ago, and am now trying to figure out the limbo we're in until the case is closed... Given we haven't even received the paper check from the IRS yet (trustee told us we had to request a paper check) reading the info in this thread leads me to believe "closure" could be a long long time away still.

The trustee filed a "Notice of Possible Assets" and a "Notice of Abandonment of Property" shortly after the 341 stating, Notice is hereby given that all scheduled assets will be abandoned from the estate except debtors' nonexempt interest in their FY 2012 federal/state tax refunds and 25% of wages due and owning as of the date of this bankruptcy filing. Is that notice sufficient to consider our (fairly meager and all exempt) tangible assets abandoned or is the "will be" language the catch and we need to wait for a close notice months/years from now? We have a '99 vehicle that needs significant repairs in excess of it's value so I'd like to trade-in as scrap but obviously don't want to do anything improper. If that notice is not sufficient, can we request the trustee officially abandon the vehicle or do we just have to let it rot where it breaks down and get another vehicle without the trade-in/scrap value?

In a 7 asset case that's been discharged but not closed, will our student loan lenders talk/negotiate with us now or do we have to wait till close? They wouldn't talk after we filed. They are all federal direct loans and we need to consolidate them into an IBR plan.

[justbroke]

The Notice of Abandonment of Assets is the "abandonment" of assets I mentioned above. I believe that becomes an official abandonment upon discharge. It's questionable and certainly a good question if an actual Notice of Abandonment has any force and affect before the case closes (e.g. upon discharge). Is there a date on that Notice?

I do not know what your education lenders would do. Most lenders will not bother you until the case closes, unless they file for relief from the automatic stay (which technically ends upon discharge on property that is abandoned). I would just contact them and inform them that the case is discharged but not closed. They (the lender) may have procedures in place where they wait until the case closes.

[Jcg23]

I do not know what your education lenders would do. Most lenders will not bother you until the case closes, unless they file for relief from the automatic stay (which technically ends upon discharge on property that is abandoned). I would just contact them and inform them that the case is discharged but not closed. They (the lender) may have procedures in place where they wait until the case closes.

Just to close the loop, a day after asking this and a day after paper discharge arrived, we recieved about 15 notices from the department of Ed stating the now owned the loans, our loans were now all in default, and due in full. Our tax refund the trustee wants has been AWOL for well over a month. Wondering now if the dept of Ed put a hold on it. This is going to be a long week.

[vmoboca]

I am in a Ch 7 asset case. Got my discharge last October. The non-exempt value of my home was included in my asset payout. The trustee sent out an mail to the creditors late last year informing them about the assets and asking them to file a claim. The deadline for filing the claim was Jan 2015.

In the meantime, I paid the trustee the non-exempt value of my home in March 31. I checked with my lawyer last week on the status of closing the case and he informed me that the trustee was still waiting for creditors to file claim. This is absurd that the creditors still hasn't filed their claims yet when the deadline was Jan.

Is there a way to force the trustee to close my case and return my money back if no creditors have filed a claim yet? What's the statue on this?

Thanks

[mornimorkel]

I went through all discussion and got huge information. Thanks all for informative discussion.

[justbroke]

There is a way to force it to close. In fact, any creditor that hasn't filed a claim within the claim filing "bar" date, should be denied the claim. You and your attorney should object to any "late filed" claim as should the Trustee. Your attorney can poke the Trustee to see what is actually happening with the case. You, by and through your attorney, can also poke the Trustee by filing a Motion to Compel.