What is happening between discharge and closing?

[skibum]

What is the court/trustee/anyone doing between discharge and closing? I don't understand why there is a delay, or what couldn't be accomplished by now that additional time will allow to happen? I am not clear on exactly what "discharge" means, I guess.

[skibum]

This is what my attorney told me will happen next:

"The Trustee will now determine whether or not there are sufficient non-exempt assets to justify opening an estate in order to distribute funds to your creditors. He will then submit a report to the Court indicating whether your case is a “no asset” case or submit a notice of possible dividends indicating to your creditors that if they wish to participate in a distribution of any assets, they must file a claim in your case by a certain date. The time it takes to administratively close your account will depend on the Trustee’s report."

I thought I had a "no asset" case. This makes it sound like my few remaining assets are still at risk. I read on the Berkus website that after the discharge you can do what you want with your assets once you get the discharge. This is what Berkus says:

"...discharge releases you from your dischargeable debts and any assets not specifically retained by the trustee are yours again".

My trustee did not retain any assets. What Berkus says is not in agreement with what my attorney is telling me. Can someone please help clarify? Thanks.

[daylate]

If you have been discharged or when you are discharged what you say is correct-you are no longer liable for any dischargeable debts but would remain liable for things like student loans and some taxes.

From what your attorney is telling you, it sounds like the trustee hasn't yet ruled you a no asset case. Were you able to exempt all of your assets and have you had your 341 meeting? if so then you should get your no asset report soon. if you haven't had the 341 you won't know for sure until after.

In any event it seems to me that your attorney should be able to tell you with almost 100% certainty if you will be a no asset case or not. Might be some gray areas such as a small income tax refund due that may or may not cause you to become an asset case.

Good luck.

[tobee43]

many times the trustee's run behind due to their case load, or many times they are reviewing your situation for any possible assets as the PP's have listed above.

i have heard of cases that take 2 months or more between hearing from the discharge and the order of no asset distribution from the trustee's office. so...it most likely is ok, and hopefully will follow shortly.

best of luck!!

[skibum]

We had the 341 meeting on February 14 and it was my belief that all of our assets were exempt, no estate was opened, and that we had a no-asset case. That's what I thought I heard from the attorney. Of course, nothing was relayed to me from him via a letter or memo or email to that effect. Communication is not his forte.

[tobee43]

We had the 341 meeting on February 14 and it was my belief that all of our assets were exempt, no estate was opened, and that we had a no-asset case. That's what I thought I heard from the attorney. Of course, nothing was relayed to me from him via a letter or memo or email to that effect. Communication is not his forte.

hopefully you will hear back soon! we actually found it odd that we rec'd both the discharge and close in one envelope from the court...guess they were trying to save on postage. we also didn't have a pacer account since we would stressed FAR too much. i'm sure you will hear something shortly.

[skibum]

Thanks tobee43. I have asked my attorney directly the questions I have. I'll see how he responds. I expect him to tell me how stupid and difficult I am to deal with, as he has in the past.

[IamOld]

We had the 341 meeting on February 14 and it was my belief that all of our assets were exempt, no estate was opened, and that we had a no-asset case. That's what I thought I heard from the attorney. Of course, nothing was relayed to me from him via a letter or memo or email to that effect. Communication is not his forte.

Skibum hello - for what it's worth, communication seems to be alien to a lot of lawyers (Despitfretya please forgive me because I think you're the exception!) - so on that one, I'm not surprised, nor, in any way, are you alone on that!

[skibum]

Thanks IamOld, I know the legal profession these days isn't the honorable one it was in the past. An attorney friend of mine actually told me that, his father was a lawyer. BTW, I am old, too!

[IamOld]

Thanks IamOld, I know the legal profession these days isn't the honorable one it was in the past. An attorney friend of mine actually told me that, his father was a lawyer. BTW, I am old, too!

:-) I get older by the second - probably age a day for each hour....

I especially like it when paralegal # 1 doesn't talk to paralegal #2...oh well...not a really pertinent issue...

[skibum]

I just checked my file on Pacer, and there is a section at the top that says "Asset:no". Does that mean we are a no asset case?

[daylate]

yes.

[skibum]

Thanks Day. I am wondering why in the world my attorney would tell me something so completely incorrect, then, and that caused me to get extremely upset and worried? I am going to see if he carries malpractice insurance.

[IamOld]

Thanks Day. I am wondering why in the world my attorney would tell me something so completely incorrect, then, and that caused me to get extremely upset and worried? I am going to see if he carries malpractice insurance.

Hello again - I will tell you this - my atty filed schedules etc for Ch 13 and I hadn't seen the final version...last minuteing "stuff." I'm increasingly beginning to think that this is the way it is....

[skibum]

I checked and he doesn't carry insurance. I wonder what that means?