DISCHARGED!! But ATTY said vehicle is still in jeopardy?

[mom2crazies]

First of all, thanks to all of those who offered advice and support while we were going through this process!!

I just checked PACER and it said that we were discharged on 5/25/11 and that the notice was sent and filed on 5/27. However, it did NOT say that the case was closed.

I have a minivan that is not worth much over the exemption and thought that it was safe to sell it at this point and buy another car cash since the case was discharged.

My attorney said not to sell it until the case was closed. Is this different than a discharge? I could have sworn he said at the 341 that the trustee only had 45 days from the 341 to require us to surrender my van. Now, it sounds like he is saying that we have to wait until after July 1st, which is the proof of claim deadline. He said that the trustee is in the process of collecting assets for the creditors until then. The trustee already ordered us to turn over our tax refund, which we did. He did not ask for anything else at the 341 and we have not received any other notices.

I'm hoping my attorney is thinking of another client, because this doesn't make sense to me!

[LadyInTheRed]

Congratulations on your discharge!

Your discharge does not return the assets of the estate to you. Unless the trustee specifically abandons an asset or the court orders an asset abandoned, all assets of the bankruptcy estate remain an asset of the bankruptcy estate until your case is closed (see bankruptcy code section 554) .

A discharge does not close your case. The case stays open after discharge in order to allow the trustee to collect and sell assets and distribute proceeds to creditors.

[mom2crazies]

Thanks Lady -

I still have posession of our minivan. The trustee did not ask for it. The only asset that was seized was our tax refund (in the amount of $2,200). The POC deadline was 7/1 and there were about was about $8,000 claimed by unsecured creditors and then a $1600 priority claim entered by the state tax commission. I can't find on pacer, where it would say the case would be closed.

I would like to sell the van ASAP (like within the next month), it needs some new tires. I wanted to use the cash that I made (which is probably about $5K to buy another vehicle outright for the same amount).

[jetsfan2010]

Didnt know discharged wasnt the same as closed. So when I see posts of ppl celebrating being discharged, its not really "over" ?

[sh9730]

Jetsfan,

For MANY people discharge is as good as over, but not officially until closed. This is mainly an issue for people who have assets (or potential assets such as this OP).

[sunshinepa]

Thanks Lady -

I still have posession of our minivan. The trustee did not ask for it. The only asset that was seized was our tax refund (in the amount of $2,200). The POC deadline was 7/1 and there were about was about $8,000 claimed by unsecured creditors and then a $1600 priority claim entered by the state tax commission. I can't find on pacer, where it would say the case would be closed.

I would like to sell the van ASAP (like within the next month), it needs some new tires. I wanted to use the cash that I made (which is probably about $5K to buy another vehicle outright for the same amount).

I would not sell anything until your case closes. If you get rid of the van before closing I believe the trustee could rescind the discharge. Don't take chances as it still belong the trustee at this poing. Good luck!!!

[nickofthedes]

congrats on your discharge!!