Can a Chapter 7 be discharged but still not closed? Is their a difference?

[tlandry]

Hello Team BK Forum,

Over a month ago, I got my chapter 7 discharge, thankfully!

Does this mean I am all set or is there further closure that I need to go through?

I ask because I have an inheritance that I am expecting, as my father is 97 and in his last days.

Thanks.

-Tom

[justbroke]

Every Chapter 7 is discharged without a closure. That's the process. The discharge comes first, and then the case is "administratively" closed if all the requirements for closure are docketed. The Clerk of the Court knows what to look for and that typically includes either a Report of No Distribution (for no asset cases) or a Final Account for an asset case. If it's an asset case, rest assured that it will not close at the time of discharge.

Your question included a hypothetical. You already filed but the process for inheritances are similar. If you become "entitled" to an inheritance, bequest, and/or insurance proceeds within 180 days of filing then you must tell the Trustee even if the case is closed. The bankruptcy estate consists of all such proceeds that you become entitled to receive within 180 days of filing, That means not the day you receive it, but the day you become entitled to receive it.

Since you say you received your discharge 1 month ago, I'll assume that you filed just over 3 months ago. That means that you filed around May 15th (give or take). If I take 180 days from May 15th, that means you are "exposed" up until November 15th which is approximately 6 months from May 15, 2023.

So long as he's not in pain, I hope that your father lives past November 15th. Not for the sake of avoiding the issue with the bankruptcy, but so that you can enjoy your time with him.

Welcome to BKForum.

[tlandry]

Thanks!

[justbroke]

Additionally, if you have an exemptions available, then those would be applied against any inheritance before it would become property of the bankruptcy estate.