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    Civil Suit holding up Discharge?

    Hi All! I've been an avid reader, first time poster. I appreciate all the knowledge shared on this forum.

    I filed a no asset chpt 7 in middle Florida (Jax) on 3/23 and had my 341 on 5/7/2010. All seemed well, except the Trustee asked about a class action suit that I am a party. This is against a former employer who shut down operations and there is an employee action under the WARN ACT for notification. The former employer is currently going through Bankruptcy in the same court.

    I received a letter from the Trustee after the hearing that this would now be considered as an asset in my bankruptcy. I understand that.

    So, I am now 71 days past 341 and growing curious. I logged into PACER and checked similar no asset cases and all appear to be discharged and closed. Mine has one entry for the 341 which is labelled as terminated, where others say satisfied. No further notations that I have been switched to an asset case or that any other activity has occurred. I remain at 'awaiting discharge'.

    Is this a cause for concern? My former employer's bankruptcy is complicated and could troll on for months. I would think the Trustee would have taken some form of action to convert me to an asset case and I would still be granted my discharge. There have been no notes in PACER since 5/7/2010.

    I'm not to the point of worry yet, but thoughts would be appreciated!

    #2
    Thoughts are all I can give you and your complicated situation. All lawsuits are tolled that you are into. However, you are not directly involved as a class action. So perhaps the Trustee cannot even figure this one out.

    My only suggestion is this, call the court (I'm in the same district) and ask your case worker clerk. Then ask your lawyer to call the Trustee, and last of course is call the guy yourself. You have a right to know.

    The good part is, you are still protected by the stay and just practice your "new start" now. You have lost nothing at this point.

    'Hub
    If I knew it all, would I be here?? Hang in there = Retained attorney 8-06, Filed 12-28-07, Discharge 8-13-08, Finally CLOSED 11-3-09, 3-31-10 AP Dismissed, Informed by incompetent lawyer of CLOSED status, October 14, 2010.

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      #3
      Whether you are an asset case or not has no bearing on when you receive your discharge. I'd suggest calling the BK court clerk on Monday and politely inquiring as to the hold up. They can usually sort out the issues. Your case should get discharged, but if the trustee thinks there might be a financial recovery from this law suit, he can keep your case OPEN.

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        #4
        Thanks your input. Much appreciated. As long as I'm protected, I'll remain patient. I accept that my filing may be a little more complicated due to circumstance and it certainly is the prerogative of the Trustee to keep the case open. I'm more concerned that not being officially designated as an asset filing, there is process being missed which could hold me up unnecessarily.

        I'll probably just give my attorney a nudge this week and see if it sorts out. I'm not to the point of making phone calls that would call attention to myself. Maybe in a week or so I'll be ready for that.

        In the meantime, I'll keep on practicing my new lifestyle! Since you are in my area, 'Hub, you'll understand those Publix coupons don't clip themselves.

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          #5
          I thought I should post an update. I received my discharge!

          It's not closed, but I'm not worried about that. I never expected to see anything from the class action suit, so they can hold out for that. Should something happen, my philosophy is that it's yours. My life begins anew.

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