Motion to extend time

[SunshineGal]

Hi you guys,

I've been reading through posts on the subject and I'm confused. If the trustee files a motion to extend time to object to debtor's exemptions, is it possible to receive a discharge before the extension runs out? I'm in the Florida Middle District.

Thanks,

SG

[free2breathe]

In that case, the discharge would not come until after the time to file motions is exhausted.

[tcreegan]

Hi Sunshine,

Federal BK rule 4004(c)(1)(e) = no discharge until the time extension is over.

Middle Florida..? Some horror stories coming out of your neighborhood....

Hope it all goes smoothly for you!

Tom in Colo

[SunshineGal]

Thank you! My paralegal told me the same thing but I had a moment of panic about the reaffirmation agreements.

Yep...FL is a ton of fun.

[despritfreya]

No. You read the original post wrong. It asked if a discharge would be delayed if the Trustee filed a Motion to Extend the Time to Object to a Claimed Exemption, not a Motion to extend the 523 or 727 deadline which is what Rule 4004(1) applies to.

Rule 4003 requires an objection to an exemption be filed within 30 days of the 341 or within 30 days of filing an amendment to Schedule C, whichever is later. The Rule allows for an extension but only "for cause" and does not mention a delay in the entry of a discharge as the entry of a discharge does not remove the asset from the estate.

So, in answer to the original question, the entry of the discharge will not be delayed if the Trustee files a motion to extend time to object to the exemption.


Des.

[SunshineGal]

Now I'm really confused. The trustee filed a motion to extend time to object to debtor's exemptions. There is nothing in there regarding discharge. There was an error on the schedules that caused some confusion, it has now been resolved and we *think* it's okay now.

What happens if our case is discharged before the re-affirmation agreements are submitted? The case is being held open for 2010 tax returns, but it's my understanding the agreements need to be filed before the actual discharge.

[free2breathe]

Thanks for the clarification, Des. I totally read the OP's post incorrectly.

[despritfreya]

Now I'm really confused.

Sorry. I did not mean to confuse anyone.

The trustee filed a motion to extend time to object to debtor's exemptions. There is nothing in there regarding discharge. There was an error on the schedules that caused some confusion, it has now been resolved and we *think* it's okay now.

This is what usually happens. A mistake is made in Schedule C. The Trustee is obligated to protect the Estate's rights in non-exempt property so he either objects or requests an extension. Once the mistake is resolved or the Trustee is given sufficient information to agree with the exemption all is at peace with the world. There was no mention about your discharge because the Trustee was not interested in denying you a discharge (unless you hid assets). He just wanted the exemptions to be correct and, if he was entitled to any non exempt property, the turnover of that property.

What happens if our case is discharged before the re-affirmation agreements are submitted? The case is being held open for 2010 tax returns, but it's my understanding the agreements need to be filed before the actual discharge.

Nothing should happen.

First, holding your case "open" does not mean you won't get a timely discharge. What is being held "open" is the administration of the case. That is separate from your discharge. It takes time for a Trustee to administer the case. That is his job. It has no bearing on the entry of the discharge.

Second, the Reaffirmation Agreement only needs to be fully executed (signed by all parties that need to sign) before the entry of the Discharge. It can be filed after the Discharge is entered so long as it was fully executed before the Discharge. There is an argument that if you are pro se the Judge must hold the Hearing before the entry of the Discharge (meaning the Agreement must be filed before discharge) but that is an extreme minority view.

Des.

[SunshineGal]

Hi Des,

Thank you VERY much for your help.

[tobee43]

des...it's that extension usually "time-wise" extended from 60 to 90 days or similar??

Middle Florida..? Some horror stories coming out of your neighborhood....

Hope it all goes smoothly for you!

Tom in Colo

yes, tom...it's a real ZOO out here...but sunshine..really ours went smooth and many of them do. i think at this point there are "nightmare" situations in every district of every state...florida may seem riddled because of the high percentage of filings...so we may see more posts and questions and situations coming directly from that or our area.

i think you will be just fine...but i must say we are seeing the courts tighten up through out the country..i think, maybe because while the old new laws of 2005, set in place to be deterrents...are no longer working best for the banks interests..??? just a passing thought.

[SunshineGal]

I think the real "zoo" is coming from the FL exemptions. Back in 2005 you could still buy a car that actually runs for $1K, and your house had gained in equity between the contract and closing date. With the complete destruction of the housing market and the values of everything else going up its creating a ton of issues for us. Then there is the matter of case law and the judges. For instance, some judges allow the super exemption if you are not claiming the homestead, even if you are retaining your house...others don't, and this is within the same court house!

[tobee43]

I think the real "zoo" is coming from the FL exemptions. Back in 2005 you could still buy a car that actually runs for $1K, and your house had gained in equity between the contract and closing date. With the complete destruction of the housing market and the values of everything else going up its creating a ton of issues for us. Then there is the matter of case law and the judges. For instance, some judges allow the super exemption if you are not claiming the homestead, even if you are retaining your house...others don't, and this is within the same court house!

oh i know!! our trustee, well, lets just say she was ok with us...but that's because we had all our ducks in a roll and left no stone left for her to turn over and dig into.

i have found down here...it's not so much the actual law, it appears to me, to be more at the discretion of the trustee...to do what they want to do...within the "limits" of the law...scary....i.e. your point on whether one gets the supper exemptions...if you do not claim the homestead...we didn't get that...for certain.

[despritfreya]

des...it's that extension usually "time-wise" extended from 60 to 90 days or similar??

I'm not sure which extension you are referencing. In general, a Trustee will request between 30 and 90 day to complete his "investigation" be it for an exemption issue or a 727issue. He can always request additional time but I generally will oppose such a request if it is beyond 90 and my client has fully cooperated. Now, if my client has failed to cooperate I would be withdrawing from the representation.

Des.

[tobee43]

I'm not sure which extension you are referencing. In general, a Trustee will request between 30 and 90 day to complete his "investigation" be it for an exemption issue or a 727issue. He can always request additional time but I generally will oppose such a request if it is beyond 90 and my client has fully cooperated. Now, if my client has failed to cooperate I would be withdrawing from the representation.

Des.

i was referring to the motion to extend time...the motion itself...does it not increase the time which normally would have been 60 days for any creditors to file an ap?? this is for my own clarification...

and of course YOU would oppose! but we're talking florida here! it's scary down here!

[despritfreya]

i was referring to the motion to extend time...the motion itself...does it not increase the time which normally would have been 60 days for any creditors to file an ap?? this is for my own clarification...and of course YOU would oppose! but we're talking florida here! it's scary down here!

Oh, I see. If the Trustee filed a Motion to Extend the 727 deadline (or a deadline to object to exemptions) that Motion, unless joined by a creditor, should only apply to the Trustee. If I was really concerned over a creditor jumping on the bandwagon, I might want to file a limited objection to make sure the Order approving the Motion only applied to the Trustee. However, I have never had a problem with a Trustee's Motion applying to all creditors.

Des.