Last day for objections versus Proof of claims date??

[cherir]

Well, we have a very complicated case. Filed Ch. 7 July 28. Our 341 was rescheduled twice (out of our control) and finally happened November 1. Last day for objections is tomorrow, 11/13.

However, at our 341, the trustee objected to the use of Federal exemptions, claiming we had to file under our previous state. We were assured this was just "paperwork" and the lawyer has refiled under the previous state's exemptions and nothing changed. However, in the meantime, the trustee has entered on Pacer that she is compelling us to turnover all our assets and the judge has set a hearing for the end of the month. This was BEFORE our lawyer got the new exemptions filed, and he swears this is all paperwork and to not panic. I am assuming if the trustee is happy with our new exemptions filing, that she will withdraw her petition and the judge will cancel the hearing?

Our 341 actually went well (except for this, she was pleased with everything else and said not to worry, this was likely just paperwork). Nothing else caused concern.

As a result of the trustee objecting to our exemptions, she filed and mailed out a letter to all our creditors notifying them that we may now be an asset case, where we were previously NO asset. Sigh. Now there is a proof of claims date for February 2.

Assuming this all becomes a non-issue very soon, does it matter that our last day for objections is tomorrow? What effect does the proof of claims have? What if the trustee changes us back to a No Asset case, as is expected?

Can we still get discharged while there is a proof of claims date out there, even if the trustee determines there is nothing to distribute afterall?

Also, everyone else mentions the "60" day wait after the 341. I live in Arkansas and we were told it is 90 days. Is this a state by state thing?

Thanks!

[HHM]

The deadline for objections does not change and is completely unrelated to the date for filing proof of claims. A creditor or the trustee would have to file a Motion to Extend Objection Deadline in order to change the due date for filing objections. Honestly, if your case has gone on this long and no creditor has objected, I wouldn't worry about it.

You don't need to worry about the proof of claims issue, that is all behind the scenes case admin stuff. Whenever a trustee thinks there might be some assets in a BK, he will inform the creditors to file proof of claims. The trustee uses the proof of claims to determine which and how much to pay creditors from any non-exempt assets the trustee recovers. However, that, in no way, alters the date for creditors to file an objection, which is 60 days from the "first SCHEDULED" date of your 341.

As for the rest, I think your attorney is right, everything that has happened is mandatory paperwork. If the trustee thinks your exemptions are not valid, he will file an objection and request turnover of assets, then it is up to your attorney to correct the issue (in this case using your prior states exemptions), or fight the motion. Since, at this stage of your case, the asset status of your case is uncertain, the trustee is moving forward with things he has to do to administer assets, i.e. get proof of claims from creditors, etc.

If your attorney amends your petition soon, the trustee will probably have no choice but to withdraw his motion.

[cherir]

Thank you! I checked Pacer, and our attorney did file our new exemptions, along with a challenge to her motion, claiming we have no assets above our allowed exemptions. Crossing my fingers that the trustee withdraws her objection very soon.

Does this mean that we could possibly be discharged sooner than the "normal" wait since we are already at our "objections due" date tomorrow?