Notice of Critical Filing Error

[Tony733]

I filed in Nov 2011, Discharged Feb 2012 asset case. There has been no Trustee action on closing since Apr 2012, when the Trustee filed an interim report to the Court that my case would close on May 31st 2012.

Now Apr 2013 the Trustee has filed someone else's "Estate Property Record and Report" in my file.

This was called out by the Court with a "Notice of Critical Filing Error". The Trustee remove the wrong report and then re-entered the same persons report into my file again. Which triggered another notice by the Court of a Critical Filing Error.

It has been more than 30 days and the Trustee has not removed the 2nd wrong filing and has not responded to the 2nd Court's Notice of Critical Filing Error.

To date there has still been no legitimate actions to close my case for over a year.

Should I care.

[tobee43]

hi tony! have you rec'd the order of "close" as yet? i know you said you were discharged, but is the case "closed" they are two different separate orders issued by the court.

[Tony733]

hi tony! have you rec'd the order of "close" as yet? i know you said you were discharged, but is the case "closed" they are two different separate orders issued by the court.

No - the case remains open with no action taken by the Trustee to close since Apr 2012.

[tobee43]

No - the case remains open with no action taken by the Trustee to close since Apr 2012.

then you need to care. you bk is not over. it's still open. while the discharge prevents most creditors from continuing to collect any listed debt, you case is still open. this is not the way you want it. it needs to be closed. if you went pro se make some calls, if you had an atty, have them get to the bottom of it. you need that " close" order. i'm sure it will all work out.

[Tony733]

2015 Update

Update - As of this date there has still been no action to close my bk. The trustee's MO is to file an interim report to the court in April with a purposed closing by December 31st. This has been done in 2013 and 2014 and I would imagine this will occur this April 2015.

I have 3 vacant lot properties that will be foreclosed on for county property taxes if I don't at least make tax payments for the year 2012.

Should I continue to pay property taxes in hopes the Trustee will abandon these properties back to me? I do not have any funds to make an offer to buy them from the Trustee.

Or should I let the property taxes laps and have the county foreclose tax sale for them?

Or should I inform the Trustee of the county tax foreclosure notice?

I would not like my credit report to suffer with another foreclosure on it. These properties are still in my name and there has been no action to transfer them to the Trustee.

To date there has still been no legitimate actions to close my case for over 3 years.

[justbroke]

You should check the FLAGS on the case to see if there is something blocking the discharge! You could also call the Clerk's office and ask whether there is anything holding up the entry of the discharge. Sometimes, it's a simple as calling. Other times, it could be that the court was waiting for something based on a FLAG on the case. (Case FLAGS are under Case Summary in PACER.)

[LadyInTheRed]

JB, Tony733 received a discharge in Feb 2012, but the case remains open because of the real estate.

I wouldn't pay the property taxes unless the trustee abandons the assets. The property is still an asset of the BK estate and you very well may be throwing your money away.

You should contact your attorney to see if it would make sense to file a motion to have the property returned to you on the basis that it has no value to the estate.

ETA: At this point, I wonder if the money it would take to pay the tax would be enough to purchase the property from the trustee.

[LadyInTheRed]

From another thread on 8/2/2013:

In my case the trustee filed an update in 6 months cutting the asset value in half. But since, to date, it has been over 1 1/2 years and nothing has been filed or updated on my real property (vacant lots). No notices, No filings, Nothing.

That's why I suspect the property is not worth much.

[Tony733]

From another thread on 8/2/2013:



That's why I suspect the property is not worth much.

Yes - You are right! These 3 lots all have potential problems to them (very small in size, cut in half by a 4 lane highway, requiring major city upgrade requirements) all of which I conveyed to the Trustee in detail at the 341 meeting in 2011.

Yes - Paying property taxes could be a waste of money. That is why I would like an answer as to the status of my case. I believe if the Trustee paid a realtor to sell these there would be little left to distribute.

I just wish it was over.

Thanks!

[Tony733]

Yes - You are right! These 3 lots all have potential problems to them (very small in size, cut in half by a 4 lane highway, requiring major city upgrade requirements) all of which I conveyed to the Trustee in detail at the 341 meeting in 2011.

Yes - Paying property taxes could be a waste of money. That is why I would like an answer as to the status of my case. I believe if the Trustee paid a realtor to sell these there would be little left to distribute.

I just wish it was over.

Thanks!

Well keeping up with current events I checked Pacer and found out the Trustee has hired a real estate broker to sell 2 of the 3 vacant lots. No notice was given to me about this and the property is still in my name. I just happened to check Pacer 2 weeks ago and found ORDER APPROVING EMPLOYMENT ) UNDER 11 U.S.C. §327 BY TRUSTEE/ Debtor(s) ) DEBTOR-IN-POSSESSION
this filling.

I checked the real estate broker's web site and found description and price for the two lots (listed for 3 times appraised value) but there are no "for sale" signs on the lots yet.

Without checking on Pacer myself, I would have no idea these were being put up for sale. It's been 2 weeks since court filing shouldn't I have been notified?

What is time frame to try and sell these before the Trustee gives up? I can tell you nobody will pay listed prices for these now.

[LadyInTheRed]

It may be that the trustee does not need to give the debtor notice of a petition to hire a professional. But, if he finds a buyer, you should get notice of the petition for approval of the sale.

Nobody can say how long it will be before the trustee will give up. The law does not have a specific time frame. You could push the issue and file a motion to ask the court to return the property to you so the case can close. But, you would have to convince the judge that the property does not have value to the estate that would result in a meaningful distribution to creditors. I would think that the longer the property is on the market without a sale, the more successful such a motion might be.

[justbroke]

Exactly LITR. Tony733 should either wait out the Trustee, or consider a Motion to Compel Abandonment if this is all just a waste of time. Of course, as LITR writes, you'll have to convince the judge in your case because it appears this Trustee doesn't give up easily!

[Tony733]

It is interesting that the Trustee will not give up on closing my case.

In April (which seems to be when he files an yearly interim report to the court), the statement at the end of the report states " Based on opinions of realtors any attempt to sale the property may be abandoned.", and "Current Projected Date Of Final Report (TFR): December 31, 2015", which has been a standard notation that has been on each report filed since 2012, that the final report would be closed on the end of each year.

I guess that's a "legal" lie.

Thanks! for your answers, just I little frustrated.

[justbroke]

It reads, to me, as though it's time to file a Motion to Compel Abandonment. You would use the Trustee's own words again him/her... "Based on opinions of realtors any attempt to sale the property may be abandoned". Or, you'll just have to wait. However, 2-3 years to close is a bit much.

[LadyInTheRed]

I agree with justbroke. I'd file a motion and quote the interim report.