asset case timing question

[billycool]

Hi all....been a while since I checked in....

My Ch. 7 was discharged in July , but the trustee converted it into an asset case. The trustee had in his possession, in the bankruptcy estate, $5400 of my garnished wages, and I've been waiting to see if he was going to come after the equity in my truck, and a little real estate LLC I have an interest in. Well, today I see the "Ch. 7 Trustee's Final Report" which states that he's abandoned everything but the garnished wages (yay!) and will issue a check to the IRS after he takes his cut.

My question is what happens now and how long til this truly closes? I see there is a Feb 10 deadline for objections, so obviously it would be after that date.....isn't there some period of time where you wait for the check to clear, or some other report gets filed or something? Just looking for a what-happens-next and a best guess as to how long before actual closure. Thanks!

[tcreegan]

Hi billycool,

Time to closing seems to be highly variable from one court to another. I think it depends on the position of the stars and phase of the moon...

Tom in Colo

[backtoschool]

Here is the basic timeline for an asset case:

The trustee has to dispurse the proceeds of your garnished wages (minus his fees) to your creditors that filed a proof of claim. Each creditor will get a chunk of the money depending on what ratio they are of your total debt. The creditors have 90 days to cash the checks. If they do not cash the checks within 90 days, the money goes back into the pool and is redistributed to the remaining creditors. Once the 90 days for all creditors to cash the checks is over, then the trustee will start the paperwork to close the account and your case should be closed in a couple of weeks after that, give or take.