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Trustee reopened Chap 7 Case

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    Trustee reopened Chap 7 Case

    Newbie here. Filed for Chap 7 in 4/2008 and was granted discharge 4/2009. The one mistake i made was trading a car 6/2008 before discharge, it was in my name, but really belonged to my girlfriend who was actually making the payments. (actually consulted my attorney beforehand and was told to go ahead!) Anyway there was less than $1500 in equity in the car, so I admitted my mistake to the trustee and after all was said and done he required a payment of $3000 to discharge the case. I had to borrow this from my brother, but it was paid and the case closed and discharged 4/2009. At the time of filing my only other assets were an upside down condo and a worthless 1970 dodge dart automobile The condo forclosed and the Dodge remains in undrivable condition and worth less that $500 at best. I have gotten back on my feet, but have not received any larger payouts since the discharge-just my hourly pay. So the question is: i received a letter from the BK court:
    "This cause came to the court on the trustee's motion to reopen case due to the fact that the case was closed before all of the assets of the estate were fully administered. For this reason it is ordered...reopened, and the trustee be allowed to fully administer the assets of the estate, and also that the trustee be allowed to defer the cost of reopening this case."

    The notice to creditors states "Notice of need to file proof of claim due to recovery or ANTICIPATED RECOVERY of assets." (emphasis added)
    So whats up? I havent come into any money, I admitted and paid for my previous mistake with the car (otherwise this would have been a no assets case). Should i be wary of them garnishing wages or anything that drastic?
    Help!

    #2
    Any chance that a 3rd party could have filed a report of fraud against you? Are you still dating the same girlfriend? These type of relationships are the ones that, when gilted, make accusations that could bring rain. Other than that I have no idea based on what you provided. Interesting situation; (of course to everyone but you, c-gato. Sorry).

    Comment


      #3
      What about a tax return? I would have thought that would have been addressed with the 2008 return - but it could be a possibility.

      Comment


        #4
        no chance of fraud reporting from gf. we're still together and doing fine. it seems to me this is to correct a mistake by the trustee. originally this was a no assets case, but my screw-up changed that, and for that i paid the $3000. that made an 'estate' from which creditors could make a claim. to me it seems that the trustee did not give sufficient time for claims to be filed. i always felt the trustee was shady, but perhaps this was a clerical error.

        there have been no direct inquiries by the bk court or trustee as to my assets since discharge, or request for records/bank statements. as stated above these are minimal, however i did finally get a good paying job in 12/08.

        actually i feel this is all about the distribution of the $3000. the date of the motion was 2/25/10 and the deadline to file a claim is 6/1/10. my attorney has not returned my calls and im just trying to get as much info as i can ans releive my anxiety so i can sleep

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          #5
          Originally posted by nerves View Post
          What about a tax return? I would have thought that would have been addressed with the 2008 return - but it could be a possibility.
          actually had a tax liability in 2008 so dont think thasts it either

          Comment


            #6
            confusedgato: If your case originally was a no asset case then I would have to agree with your guess. The trustee needed to convert it to an asset case to distribute the $3k. I don't know why it took him that long though unless you just finished paying him the $3k? It does say the 'RECOVERY or anticipated recovery' of assets.

            William
            I am an attorney, but I am just not your attorney.
            As such, any statement is not intended to create an attorney/client relationship.

            Comment


              #7
              The trustee has to make your case an asset case if he collected $3,000 from you. This should have been done at the time you made payment arrangements with him to pay the $3,000. If for some reason, the case did not get changed to an asset case at that point, then it would have to be reopened so that the trustee can let creditors make claims against the assets and then the trustee can distribute the assets. If you go on pacer there should be a point when the trustee filed an interim report that listed the anticipated asset of $3,000 and there should also be a final report where the trustee lists how he is going to divide the $3,000 out amongst your creditors. If the trustee did not do these things then he did not do his job correctly.
              You can't take a picture of this. It's already gone. ~~Nate, Six Feet Under

              Comment


                #8
                I wonder what a confusedgato sounds like...

                moew?
                So the poor debtor, seeing naught around him
                Yet feels the narrow limits that impound him
                Grieves at his debt and studies to evade it
                And finds at last he might as well have paid it.

                Comment


                  #9
                  Originally posted by Dst1 View Post
                  I wonder what a confusedgato sounds like...

                  moew?
                  More like WOEM!

                  Finally talked to my attorney. Looks like this is pertaining to only the $3K that I paid them in 2007! Wonder why it took them so long to fix this. Gotta wonder if they were trying to make off with the $$$???

                  Comment

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