Originally posted by dspii
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I have researched quite a bit regarding the discharge and closing dates and there value to the debtor. As many people have posted, the date of discharge is the most important and the closing is just an admin process and of no value to the debtor.
I have found this to be very true in a "no asset" case but significantly wrong in most asset cases. In a no asset case a Report of No Distribution is filed with the court which, among other things, formally abandons all of the scheduled assets of the estate back to the debtor. Once the legal processes are completed ie...notice given and filed with the court, you can do what you please with the junker car in your garage or your Winchester shotgun.
In an asset case, the trustee files an interim report that among other things has a column (4) that defines how the assets will be abandoned (OA or DA) as shown below.
Property
Abandoned
OA=�554(a) abandon.
DA=�554(c) abandon
The significance of this in an asset case is substantial. The fact is that the estate owns all of your assets listed on your schedules until the case is closed or the trustee filed to abandon them. All of my assets on the Interim Report are listed as DA which refers to 554(c) below and means "Deemed Abandoned at close of case". In all cases I researched, the trustee relies upon case closing (DA) to abandon all the scheduled assets back to the debtor.
Bottom line, in most asset cases, you legally cannot dispose of any assets listed on your schedules until your case is closed. In my case, I have a van I really need to sell, but can't due to the asset being legally part of the estate. Obviously, you can ask the trustee permission, if you want to write them a check for the non-exempt proceeds. So I must wait until my case is closed and the assets of the estate legally abandoned back to me.
It really sucks, but if your an asset case and your case is not closed, be careful what you do with the assets listed on your schedule.
If your still interested, below is the legaleze of Title 11 Sec. 554(a) and (c)
11 USC 554 - Sec. 554. Abandonment of property of the estate
(a) After notice and a hearing, the trustee may abandon any property of the estate that is burdensome to the estate or that is of inconsequential value and benefit to the estate. (b) On request of a party in interest and after notice and a hearing, the court may order the trustee to abandon any property of the estate that is burdensome to the estate or that is of inconsequential value and benefit to the estate. (c) Unless the court orders otherwise, any property scheduled under section 521(1) of this title not otherwise administered at the time of the closing of a case is abandoned to the debtor and administered for purposes of section 350 of this title. (d) Unless the court orders otherwise, property of the estate that is not abandoned under this section and that is not administered in the case remains property of the estate.
I have found this to be very true in a "no asset" case but significantly wrong in most asset cases. In a no asset case a Report of No Distribution is filed with the court which, among other things, formally abandons all of the scheduled assets of the estate back to the debtor. Once the legal processes are completed ie...notice given and filed with the court, you can do what you please with the junker car in your garage or your Winchester shotgun.
In an asset case, the trustee files an interim report that among other things has a column (4) that defines how the assets will be abandoned (OA or DA) as shown below.
Property
Abandoned
OA=�554(a) abandon.
DA=�554(c) abandon
The significance of this in an asset case is substantial. The fact is that the estate owns all of your assets listed on your schedules until the case is closed or the trustee filed to abandon them. All of my assets on the Interim Report are listed as DA which refers to 554(c) below and means "Deemed Abandoned at close of case". In all cases I researched, the trustee relies upon case closing (DA) to abandon all the scheduled assets back to the debtor.
Bottom line, in most asset cases, you legally cannot dispose of any assets listed on your schedules until your case is closed. In my case, I have a van I really need to sell, but can't due to the asset being legally part of the estate. Obviously, you can ask the trustee permission, if you want to write them a check for the non-exempt proceeds. So I must wait until my case is closed and the assets of the estate legally abandoned back to me.
It really sucks, but if your an asset case and your case is not closed, be careful what you do with the assets listed on your schedule.
If your still interested, below is the legaleze of Title 11 Sec. 554(a) and (c)
11 USC 554 - Sec. 554. Abandonment of property of the estate
(a) After notice and a hearing, the trustee may abandon any property of the estate that is burdensome to the estate or that is of inconsequential value and benefit to the estate. (b) On request of a party in interest and after notice and a hearing, the court may order the trustee to abandon any property of the estate that is burdensome to the estate or that is of inconsequential value and benefit to the estate. (c) Unless the court orders otherwise, any property scheduled under section 521(1) of this title not otherwise administered at the time of the closing of a case is abandoned to the debtor and administered for purposes of section 350 of this title. (d) Unless the court orders otherwise, property of the estate that is not abandoned under this section and that is not administered in the case remains property of the estate.