Waiting on DC? Or?

[Will996]

Hi All! So I'm being very cautiously optimistic for a DC. Long story short I have a 'Non-Consumer' Ch7 regarding business debts. Had my 431/MOC on 4/20 on 4/25 "trustee initial report hit". The last day for objection is 6/19, this Friday and I'll be 60 days post MOC on the 24th according to Pacer.

So I've heard, no news is good news. I had to provide a more current bank statement for 2 accounts at the MOC but no continuance or anything. Last update in Pacer was a reaff agreement on 5/19.

For those with any experience should I expect a "Report of No Distribution" or being a non consumer case, maybe I just wait the time limit and the DC paperwork just clerically happens?

I really don't want to nag my attorney yet again, she's been great but she's definitely earned her money with all my concerns, questions, long meetings and phone calls over the last 3 months.

My supersition says don't jinx things by asking as well, so guess I hope superstitions are fake HAH.

[justbroke]

You should wait until after the 60 days has elapsed (which you say is Friday the 19th). Sometime after Monday (day 61) the discharge will be entered. I can't tell you if your district is behind or if they use "automatic" closings.

When my (converted from Chapter 13) Chapter 7 "non-consumer" case was within 14 days of the last day to file a complaint, I created this thread to keep my mind off the discharge.

Unless the United States Trustee (UST) has already been poking around and asking for information, it should be smooth sailing.

[Will996]

Thank you so much! I figured you or Des would chime in pretty quickly. I guess my concern is the whole not having a "Report of no distribution" entered. I'm going to read your thread now

[justbroke]

Here's the abridged version: I worried for nothing. Unless the UST has already been poking around in your case, and you would know because they would have shown up at the 341 meeting, there's really nothing to worry about except some rogue creditor.

(The Trustee has to be excused in the case, but the Report of No Distribution is not necessary for discharge. It's necessary for closing.)

[Will996]

Very interesting, closing means I requested it be closed? Or it was dismissed?

[justbroke]

There are technically three parts to a Chapter 7; filed, discharged, and closed. (At least for cases where a discharge is entered and a case is not dismissed.) The time period between the discharge and the closing are sometimes referred to as the administrative part of the case. This is where, in an asset case, the Trustee goes about collecting the property, liquidating the property, and then distributing to the creditors. The Trustee then does an accounting and submits that to the court. The court eventually "administratively" closes the case.

In a no-asset case, the Trustee will typically file the Report of No Distribution almost immediately after the 341 Meeting. The reason for this is that the Trustee only makes about $60 on a no-asset case so they want to be relieved of their duty. In fact, that report usually includes language that the Trustee wants to be dismissed from the case.

Until some report is filed (no distribution or distribution) the case will remain open. Additionally, flags could keep the case open. One such notorious flag is the "2nd" financial management course which some debtors forget. If that's not submitted with form B23 (the certification), that could also delay the closing of the case.

For what it's worth, a non-consumer case does not mean that it's a "no-asset" case. If you don't know whether you're an asset case, then you'll have to find out. Asset cases can remain open for years to allow the Trustee to go after property.

[Will996]

It is a non consumer, no asset case. That's what strikes me as concerned/questioning about not getting the Report of No Distribution.

As far as flags, it just states Case checked, awaiting discharge. I did both first and 2nd course. Hmm, maybe I should ask them.

[Will996]

@despritfreya have you seen or heard of this before in a no asset, non consumer ch 7? Not having the report of no distribution just 3 days before the final date to object? Thanks in advance

[justbroke]

For what it's worth, my case was a no-asset non-consumer Chapter 7. How quickly a Trustee gets to sending their report is too fact-specific. With the virus, I'm sure Trustees have found many reasons to be behind. Since you are represented, your best resource is your attorney. Anecdotally, I have read, here on BKForum, tales of every length of time from an immediate Report of No Distribution being filed the same day as the 341 meeting, to very late filed reports.

Regardless of the report, your case will discharge after the 60th day. As I tell all our friends here at BKForum, how and when the case actually closes is an administrative task. Those administrative tasks and reports do not affect the discharge. The discharge is the prize.

[Will996]

Sweet! Thanks again, so for a DC I do not necessarily need the Trustee to make report of no distribution. Just hold on and be patient and 'fingers crossed' Saturday morning rolls around with no news and I should be good to go