Receiving money/property etc AFTER discharge is final...

[Beeheery]

Hi everyone,
I was under the assumption that once we receive our "discharge" notice, that we could like win the lottery the next day and it can not be taken away since our case is closed. However, I was reading some posts and several people said that trustees can re-open a closed case at ANY time in order to claim assets. If this is the case, how am I ever able to get a car in my name if they can take it after my case is closed? After I file and am discharged, I was wanting to start saving money and what is the point of that if that is considered an asset they can take. I thought Ch. 7 was final. Thats it. Start over new. So...how is filing BK even worth it when it apparently doesnt protect you at all or even give you a chance to start over without fear of having it taken away at any moment? Thanks so much for all your help. I am just really confused and now VERY anxious.

[TEW]

Hitting the lottery is not quite the same as buying a car or new house. I think what the are talking about is a windfall that would be worth reopening the case.

[Beeheery]

Hitting the lottery is not quite the same as buying a car or new house. I think what the are talking about is a windfall that would be worth reopening the case.

thanks TEW. but what about getting a car or some other property in your name afterwards? my grandma died a few years ago and has a car that is still in her name. i would like the car but obviously will not put it in my name now. what i am wondering is, if i file BK and it gets discharged, when can i have her car transferred into my name w/o having to worry about my case being re-opened since now i have an asset (her car). thanks!

[yorkin]

What I learned just tonight from reading other posts is that all you really need to worry about is something like an inheritance or lottery win withing 180 days of discharge. After that, you're fine. Can you imagine them trying to keep track of what every person who was discharged how much money they made or inherited for the rest of their lives??? Yea, not too realistic and everyone has the right to get on with their lives. They are not going to come after you for a car, and besides, you're allowed to have a car when you file if it is a reasonable car and there's even an allowance for that. Don't worry, just file, be honest and enjoy your fresh start!!

[laurannm]

Hi everyone,
I was under the assumption that once we receive our "discharge" notice, that we could like win the lottery the next day and it can not be taken away since our case is closed. However, I was reading some posts and several people said that trustees can re-open a closed case at ANY time in order to claim assets. If this is the case, how am I ever able to get a car in my name if they can take it after my case is closed? After I file and am discharged, I was wanting to start saving money and what is the point of that if that is considered an asset they can take. I thought Ch. 7 was final. Thats it. Start over new. So...how is filing BK even worth it when it apparently doesnt protect you at all or even give you a chance to start over without fear of having it taken away at any moment? Thanks so much for all your help. I am just really confused and now VERY anxious.

I think some of the other posts you are referring to are probably instilling a false sense of fear. There are basically two reasons why a case could be re-opened.

1) A large windfall, such as lottery winnings, proceeds from a lawsuit, or inheritance

2) If the trustee discovers that a serious act of fraud has been committed, such as the hiding of assets at the time of filing

The first has to occur within 180 days post-discharge. After that, it's yours to keep.

Keep in mind that re-opening a case takes some administrative work by the trustee (they have motion the court with a valid reason, etc.). They can't just click a button and reopen a case whenever they feel like it.

[jessegirl]

You can buy anything after your case is discharged and closed as long as you can pay for it. The trustee will not take the car or house, BUT if you buy a 300K house for cash well then i would think the trustee is going to be like WTF....

[Beeheery]

Great. Whew! I feel alot better now. I am just terrified by everything and have been putting this off forever. I think I am just so scared of the 341 meeting. I didn't know we had to do it in front of other people. Im nervous enough and I am afraid they are going to trip me up and I am just really emotional about all of this. Oh, im sorry, one last question. If I wait till after the new year to file, do you know if I have to include my financial aid that I receive at school (Pell Grant for $4730.00) and if I take out a loan to help me with expenses? I can get a school loan for approximately $2500.00 for the Spring semester but I dont want to accept it if they are just going to turn around and say that they want it now. Also, if I wait, do I have to file my taxes for 2008 before I can file in 09? I assume if I file in December of this year, that I just have to submit my 2007 taxes even though I wont be discharged until 2009? Sorry, i know i said it would be quick. lol. Thanks again for everyone who responded. I feel ALOT better now. Thanks!

[JJL]

Great. Whew! I feel alot better now. I am just terrified by everything and have been putting this off forever. I think I am just so scared of the 341 meeting.

It is in front of people and I did find it embarrassing even though everyone was there for pretty much the same thing. That said try not to worry too much. Its very quick and they are not going to try to trick you or anything. Afterwards you will be like "that wasnt a big deal" <<--- that is a promise. When its over take yourself out for a nice lunch and relax

[relief13035]

I am in a similiar situation as the OP. On Thanksgiving my parents told my husband and I that they are getting a new vehicle and want to give us their current vehicle instead of trading it in. Can I take possession of it now or should I wait until I am discharged in January? If I am given an asset soon after discharge does that throw up a flag??? It is a 2004 Honda

[Flowers]

1) A large windfall, such as lottery winnings, proceeds from a lawsuit, or inheritance

Does the court define large? My definition may differ from theirs!

[dadkrs]

I have a question, how would the court ever find out about any windfall after discharge?