341 "continued"...again, and again, and again. Options? Opinions?

[btbeme]

I have a friend in CA who filed Ch 7 on 10/15 and had a 341 meeting on 11/17. The Trustee wanted to investigate the value of a piece of property my friend owns out-of-state, so the 341 was "continued" until 12/1.

On 12/1, my friend and attorney appeared again. The Trustee said she was still investigating. 341 "continued" until 12/15.

On 12/15, they show up again. Trustee said she still hasn't made a decision on how to move forward. 341 "continued" once again until 1/12.

So, what is the record for this? I feel that it is getting ridiculous... do the continuations move the "last day to oppose discharge," originally scheduled for 1/18, further out? There are no other documents yet filed.

Anyone have experience here? Suggestions?

[tcreegan]

Hi btbeme,

The record I have seen posted is a guy from Montana who was working on 9 months w/ no end in sight.

The 60 day deadline for creditor objections is from the 1st scheduled 341, in theory that does not get pushed back.

That said, I am not sure why the trustee is continuing the 341....they can take all the time they need to liquidate assets and make the creditor distribution after the 341 and discharge. Just need to extend closing.

Tom in Colo

[btbeme]

Hi btbeme,

The record I have seen posted is a guy from Montana who was working on 9 months w/ no end in sight.

9 months? Now, all I have learned about the BK process is that the logic tree for a Ch 7 is about as twisted as it gets...but 9 months? For a 341 completion? Wow.

A question, just for fun - I know that a Trustee has a great deal of power and authority, but at what point will they have to explain themselves to a judge - or at least a UST - as to why a 341 would take so long? I mean, if the file is convoluted, or stinks to high heaven, why spend the effort to turn over every rock and crawl up every orifice twice? Why not just toss it? I cannot see how such an extended period would be of benefit to anyone...even if I were wanting to build a case against someone to make them a poster child for fraud.

[frogger]

Trustees are no different than anyone else. They get busy, they have a million things on their plate to do, and sometimes, some of the complicated things get pushed onto the back burner. Not saying that it's right, but saying that it does happen.

A lot of trustees are also attorneys dealing with private practices, along with their ever increasing case load of bk filers.

I do not think they will have to explain themselves to a judge or a UST, as long as they get the job done. You probably don't want to make any more of it than it is. Your time periods haven't changed, you just haven't discharged yet.

Never forget that bk is a process, not an event. Patience......

[justbroke]

Your friend should already have their discharge unless the Trustee filed a motion to extend the time to determine dischargeability. The bar date for filing such a complaint is 60 days after the first scheduled 341 Meeting. If the Trustee is only worried about some property valuation, extending the 341 Meeting is not the way to do it. I'm thinking that there is something else. The purpose of the 341 Meeting is not to determine property values.

A Trustee can hold a particular piece of property in the estate for months (even years) for distribution purposes. There is no cause to continue a 341 Meeting unless the debtor keeps missing information that the Trustee requested. A property valuation is not one of those things.

This case appears to be atypical.