Discharge vs. Closed??

[sar2547]

Just got disharged on our Ch. 7 last week.. What does "closed" mean? How long is it typically until my status sayS closed? Right now it says "Awaiting Closing"....

[disconapper]

I think from what I've read on this forum is that "Closed" simply means a paperwork issue by the courts....nothing to fret over.

[tobee43]

closed is really IMO far more important than being discharged.

you should receive two orders...one with the discharge and the other from the trustee indicating the case is closed and they are done. that's the really important one, again IMhumbleO, and although ours came together in the same envelope, others can be as much as a few months between. nothing to worry about at this point. many times the trustee's office runs a bit behind.

[freeatlast09]

Just got disharged on our Ch. 7 last week.. What does "closed" mean? How long is it typically until my status sayS closed? Right now it says "Awaiting Closing"....

I assume you are a no asset case? If so, the closing should come very soon after discharge. Asset cases can take months or even years to administer and close.

[sar2547]

I assume you are a no asset case? If so, the closing should come very soon after discharge. Asset cases can take months or even years to administer and close.

Yes, a No Asset case...

[JFB]

My chapter 7 was discharged on 6/14 and says "awaiting close". I was also wondering how long before it closes and if there is anything I should be concerned about in the meantime.

[debee]

@ JFB

Sounds like they're done with you.

This is from the U.S Trustee's Program "Memo of Understanding Regarding Case Closing":

"The case trustee shall submit a No Distribution Report (NDR) to the United States Trustee within 60 days of the meeting required by 11 U.S.C. § 341(a) or file the NDR with the Court and serve a copy on the United States Trustee within the same time period. The NDR constitutes the Final Report and Final Account in an estate where the case trustee has determined that there are no assets to administer." (italics mine)

What this means is that in a no-asset case, once you get your NDR the case trustee is done with you. Once you get the NDR, you're just waiting for certain time periods to pass.

Also from the same Memo:

" 1. Upon filing of the NDR in a no asset case, and the expiration of the time limits for filing objections to the case trustee's report pursuant to FRBP 5009, and for filing objections to the debtor's discharge pursuant to FRBP 4004(a), the clerk shall authorize payment to the trustee of the fee established by 11 U.S.C. section 330(b).

2. After the above events occur the court, pursuant to 11 U.S.C. section 350 and FRBP 5009, shall enter an order to discharge the trustee and close the case after the expiration of the 30 day period set forth in FRBP 5009."


According to FRBP 5009: The UST and parties in interest have 30 days to object from the filing of the NDR
According to FRBP 4004: They have 60 days from the first date set for the 341 (FRBP 4004)

So if you've passed these time-hurdles, you're done. No-one is looking into your case and it's just a matter of waiting for the clerk to get around to entering the info in PACER.

(The Memo is here: http://www.justice.gov/ust/eo/rules_...ou99/index.htm)

[sunshinepa]

Not sure how long in CA but I really think it depends on the courts and perhaps the number of cases. Here in PA, it's fairly quick I think as my case was updated to "awaiting discharge" only two hours after my 341!!! Will let ya know as I have 32 more days to go till discharge.

[porkchopcash]

debee, I am 60 days past 341 with no NDR filed but also nothing filed by trustee seeking assets.
Am I understanding you to say that the trustee must file something to pursue assets within 60 days from 341. Would that mean if they do nothing your are, by default, "No Asset"

[debee]

debee, I am 60 days past 341 with no NDR filed but also nothing filed by trustee seeking assets.
Am I understanding you to say that the trustee must file something to pursue assets within 60 days from 341. Would that mean if they do nothing your are, by default, "No Asset"

My post was specifically about cases already deemed "no asset" and the timeframes from that determination to closing. What's your lawyer saying about the delay? Has he heard anything?

[porkchopcash]

Lawyer's paralegal has a call into the trustee's paralegal but no response yet.
I will update when I hear something.

[discouraged]

I have the same type of question. I was discharged June 19 but am now waiting closing. No asset case. Received a letter from the Lawyer's office with the Notice of Discharge and the law clerk I've been working with wrote that it was an administrative process and generally happens within a month after discharge. So I still don't feel as if it is 'over and done with'.

I do have an email in to her asking what the difference was and if she foresaw a problem but just sent it so will have to wait and see.

[debee]

... the law clerk I've been working with wrote that it was an administrative process and generally happens within a month after discharge.

The usual month wait after the NDR comes from the time limit referred to in the Federal Rules of Bankruptcy Procedure 5009. If you've hit or passed that mark, you're in the clear. You'll just be waiting for the clerk to get around to entering the info.

Porkchop's case is different because he didn't get the NDR and his case isn't garden variety either (high income, s-corp, etc.) -- Sorry you're in limbo, porkchop! Hang in there!

[tobee43]

disharge vs close do they mean the same? (aka what do they mean?) LOL!!!!


simply put...nope, although "discharge is a very magic word. why? because the discharge prohibits any attempt to collect from the debtor/s a debt that has been discharged. creditors are no longer permitted to contact one that receives their discharge by mail, phone, or otherwise...they cannot file or continue a lawsuit, they cannot attach wages or to any other property of yours. basically, creditors can no longer take any action against you, and a creditor who violates this order can be required to pay damages and atty's fees to you.

however, a creditor may have the right to enforce a valid lien, such as a mortgage or security interest provided you receive such notice from court that lien was not avoided or eliminated in the bankruptcy case at the time.

also remember there are certain debts that are not eliminated by a discharge...such as, and in no special order and just from what i remember, i'm certain there may be more.



debts for most taxes

debts incurred to pay nondischargeable taxes

debts that are of domestic support

student loan debt

*****important**** some debts which were not property listed by the debtor

debts for most fines, forfeitures, or criminal restitution obligations

debts for person injuries or death caused by the debtor's operation of a motor vehicle, vessel, or aircraft while intoxicated

debts that the bk court specifically has decided or will decide in the courts case are not discharged

debts for which the debtor has given up discharge protections by signing reaffirmation agreement in complies with the bankruptcy code requirements for eh reaffirmation of debts;

and debts owned to certain pensions, profit sharing, stock bonus, other retirement plans, or to the thrift savings plan for federal employees for certain types of loans from these plans.




A bankruptcy discharge is a court order that protects you fully and a dismissal of the case and it does NOT determine how much money, if any, the trustee will pay to creditors, if they so chose to turn your case into an asset case. " Discharge" is a magic word. .keeps close track of charge offs. however, the "Close" IMhumbleO is just a significant and actually to me, more important, although equally weighted to some. one without the other means, in reality, your not exactly done yet.

A bankruptcy discharge is a court order that protects you and is an order granting a discharge under section 727 of title 11, united stated bk code.

usually reading something like:


DISCHARGE of DEBTOR/or could read JOINT DEBTORS ( if you filed with your spouse...)

It appearing that the debtor/debtors are entitled to a discharge,

IT IS ORDERED:

The debtor/s are granted a discharge under section 727 of title 11, United Stated Code, (the Bankruptcy Code)

BY THE COURT

_________________________________________
Signed by the United States Bankruptcy Judge
Dated: ____




now the ""Close".....

usually that order reading something similar to this.....


ORDER APPROVING TRUSTEE'S REPORT OF NO DISTRIBUTION


it appearing to the court that ________________(the name of your trustee) in the aoved entitled case has filed a final report of no distribution and that said trustee has perfored all other required duties in the dminstration of this estate...

accordingly it is:


ORDERED:



1. the report of the trustee is herby approved and that the estate closed.

2. the trustee is discharged and relieved of her/his trust

3. all deficient pleadings that have not been cured are considered moot.



DONE AND ORDERED on Date_______________



________________________________________________

Signed by the United States Bankruptcy Judge

to me ...i like the close because it means that trustee is DONE with me.. but to each it's own!!

i'm certain your close will come shortly.

[tobee43]

sorry about the typo's.....

it appearing to the court that ________________(the name of your trustee) in the aoved entitled case has filed a final report of no distribution and that said trustee has perfored all other required duties in the dminstration of this estate.....

should read as follows...

it appearing to the court that ________________(the name of your trustee) in the above entitled case has filed a final report of no distribution and that said trustee has performed all other required duties in the administration of this estate...

i'm sure there's a few more, but at least i hope the point got thru..