No asset Ch 7, discharged early September...closing date?

[miindebt]

Hi there,

We were a no asset Ch 7 and were discharged in early September. We still haven't been closed (and I want to try to modify our mortgage, but can't until closed)! I just looked at Pacer - nothing has been filed since the discharge. There also is no "No Distribution" report filed at all. Should I call the trustee? Our lawyer?

We're self employed, so maybe the trustee is waiting to see our tax return for this year...I just want this DONE!

[help1234]

I would start by calling the attorney

[outsidetool]

Could be the tax return...my case did not close until I provided the tax return for the year of the filing. This resulted in about 3 months between discharged and closed.

[miindebt]

It just doesn't make sense to me, though - if he's waiting for that, it'll be around 6 months between discharge and close. But maybe that's what he's doing!?

[justbroke]

Why are people so worried about the closing date? You shouldn't be worried. My case didn't close until almost 6 months AFTER the discharge. I was a no asset case. It took that long for the Court to approve the Trustee's no-distribution report.

Please don't "worry" about the "administrative" issue of closing. I'm sure your attorney will tell you the same thing. The discharge is what you want in a Bankruptcy. The closing of the case is just administrative.

[antrob]

I was discharged on September 19 and it closed on Sept. 22. From my 341 to it closing it took 81 days.

[tcreegan]

Hi miindebt,

haven't been closed (and I want to try to modify our mortgage, but can't until closed)!

Have you started the modification process? It usually is a long, drawn out affair, I imagine you could at least get started, get the paperwork from the lender maybe..

Tom in Colo

[justbroke]

I was discharged on September 19 and it closed on Sept. 22. From my 341 to it closing it took 81 days.

Some Districts will do an "auto close", but not all Districts do this. Closing is still not "significant". The most significant part of a case is the discharge, not the closing.

If you have a lender who won't consider a modification unless the case is closed, then the lender is mistaken. I did mine during the bankruptcy and prior to discharge. You just need an affidavit from your attorney that it's okay to contact you regarding the debt for purposes of modification only. I was pro se and did all these things myself. Now the person you spoke with at the lender may not understand the technicalities of a discharge, but the automatic stay ends upon discharge (unless an asset is being held by the Trustee for liquidation).

In any event, a modification can take some time, and you should at least be able to get the paperwork and start completing it.