Question about Pacer entry

[cornstalk]

Ive been waiting for discharge and checked PACER today and seen this entry.

NOTICE OF NEED TO FILE PROOF OF CLAIM
DUE TO RECOVERY OF ASSETS
The initial notice in this case instructed creditors that it was not necessary to file a proof of claim. Since that notice
was sent, assets have been recovered by the Trustee.
Creditors who wish to share in any distribution of funds must file a proof of claim with the clerk of the bankruptcy
court at the address below on or before:
October 5, 2010
This date does not reduce the time provided by statute for governmental units to file proofs of claim.
Creditors who do not file a proof of claim on or before this date might not share in any distribution from the debtor's
estate.

The trustee hasn't recovered any assets. I plan to surrender a car that I owed 7000 on and had about 2500 in equity, its the only asset I had that wasn't exempt but was told at the 341 the trustee wasn't interested in it. Is this normal to be changed to an asset case because I'm surrendering a car? Could this delay discharge?

[iv65536]

I believe you are being converted to an asset case because of the equity in the car. I'm assuming you are using Ohio exemptions, and that the full amount of equity in the car cannot be exempted.

[cornstalk]

I'm assuming you are using Ohio exemptions, and that the full amount of equity in the car cannot be exempted.

Yes it was a second car that I used a 1,075 wildcard exemption on. Am I correct in believing that I will get the exempt amount back from the trustee if the car is sold at auction rather than being surrendered back to the bank that holds the lien. Thanks

[justbroke]

Yes, it's the equity in the car. The Trustee must set a deadline to file claims when a no asset case becomes an asset case... even if it's only "speculation" that there "may" be some property to liquidate and money to distribute. This puts the unsecured creditors on notice to file a claim.

Now, if the Trustee only gets $1,000 of the $2,500 equity, then, after taking his $250 commission and costs, the rest is distributed amongst the creditors. They may only get $3 or $50 and much depends on how many actually file a claim.

This will not delay your discharge and affects closing only.

[horse]

What is the difference between the "discharge" and the "closing" of a BK case?

[justbroke]

HHM has written a thread on that specific question.

http://www.bkforum.com/showthread.php?t=10879

[cornstalk]

Thanks JB thats what I thought would happen.