The time between discharge and closing

[follie]

I've noticed that several of our veterans here have had what, I consider, a good time between discharge and closing. What happens in that time? Is there a possibility that something could go wrong? Just curious.

[SinkingFast]

We were Discharged right on schedule in December. BUT, at our 341, the Trustee said he wanted to see our filed 2006 Income Taxes come spring. That's why we didn't Close on schedule like others at our 341 did.

After we filed our taxes this spring, we sent copies of both State and Federal to our attny, who in turn forwarded them on to the Trustee's Office. It took about 2 weeks for the Trustee to notify us he was abandoning our small refunds. That's when our "The Trustee has found no assets to administer and asks to be released from duty" Notice posted on PACER. That was mid March.

Then, our Court waits 30 days after last notice appears before the Clerk will Close BK's. And the Clerk only Closes BK's once a month at the end of each month. So our 30 days were up mid April and the way the month fell, the Clerk closed all BK's the week of April 25th.

Generally, when Closing doesn't come right away, the stuff going on is behind the scenes, Admin type stuff involving the Trustee. Administering assets, distributing proceeds from assets, auditing the case. Most of the stuff that goes on between Discharge and Close does not involve the Debtor/Filer in any way.

[follie]

So it's really nothing to worry about unless your lawyer calls you and says "Oh, by the way..." ?

Thanks as always!

[jal1129]

Many times when there is a long period between discharge and closing its because its an asset case.

[BassBoy]

jal is right. When there are assets, it can take up to a year or longer for the case to close in some instances. The paperwork just kinda sits around on the US Trustee's desk for a few months after the claims are filed (which I believe is 60 days after the discharge). So it can take a while in some cases.

[whatamess]

I was thinking...

in thos drawn our closure cases, that they were filed at the end of the year. I know if you file from Sept through Dec, the trustee is waiting on federal tax returns for the following year.
This is the main reason we are doing this in June....I NEED my returns! They are our yearly lifesaver. The gov gave me the money back cuz I was poor, (tax credits for kids) SO I must have needed it.
WAM

[almostthere]

The time it takes between discharge and closing vary also from state to state. In a smooth no hitch case, discharge and closing may happen at the same time while the same case in another state may take a few months.

In my state it typically takes 6 to 12 weeks after discharge for a non assest case to close. I am currently in this boat and I check the status of other cases discharged at around the same time. If none of these cases have been closed yet, I know it's "normal".

[lrprn]

I NEED my returns! They are our yearly lifesaver.

Here's a chance for you to try another approach - set up your exemptions for this year so the government doesn't keep your money tax-free for a year. Here's a link to an IRS publication that shows you how to adjust your withholdings to get a little back, but not a lot - http://www.irs.gov/pub/irs-pdf/p919.pdf - especially important to do if the trustee is going to take a hard look at your tax returns before discharging and closing your case.

This way you get your extra money every month to use if you need it throughout the year. Yes, it does take discipline to put some aside each month into a savings account earning interest or other savings method, but after bankruptcy, everyone needs to change their former spending and saving patterns anyway. The federal government is the worst savings plan ever! No interest, and no access to what you've earned for a whole year!

[ccidiot01]

Follow up question. We have been notified that they are distributing our "assets" to those lenders who filed claims. This notification came on 08/18/2007. Any idea on about how long it will take for this to close?

[BurgerKingVII]

The time it takes between discharge and closing vary also from state to state. In a smooth no hitch case, discharge and closing may happen at the same time while the same case in another state may take a few months.

This is true. In my district, straightforward no-asset Chapter 7 cases get closed by the Clerk one or two court days after the discharge order is entered.