The Significance of Closing an Asset Case

[Chapter007]

I'm sure the most important thing the trustee cares about is HIS commission off this deal. Can you please post what he gets once all is said and done. I'd guess it's going to be at least $50,000

Of course. I will keep all apprised. If anyone knows some outside the box solutions let me know. Thanks all.

[tdawg]

Wow that does stink...unfortunately I don't think there is anything you can do now, except maybe contact the trustee saying you have a buyer and still get a commission. Not sure of the legal process, maybe others can chime in that can offer better advice.

I'm sure the most important thing the trustee cares about is HIS commission off this deal. Can you please post what he gets once all is said and done. I'd guess it's going to be at least $50,000

[dspii]

Because that is the case. Letter received from the court today from judge approving the Trustees request to move forward with offer and consummate the sale.

Wow that does stink...unfortunately I don't think there is anything you can do now, except maybe contact the trustee saying you have a buyer and still get a commission. Not sure of the legal process, maybe others can chime in that can offer better advice.

[Chapter007]

It doesn't make sense why you want to do this unless the trustee is selling the house.

Because that is the case. Letter received from the court today from judge approving the Trustees request to move forward with offer and consummate the sale.

[dspii]

My parents are in a asset case, they have a last minute offer on the table that came in right before Trustee was to abandon. They received the discharge a few months ago, but as you all know the case is still open. I was wondering what the possibility of having the Bankruptcy Petition Dismissed and the discharge retracted?
Chapter007

No you cannot have the case dismissed, you may be able to convert to a C13, but why would you want to? If the house can be a short sale, either wait until the court abandons the property or file a motion to request it. It doesn't make sense why you want to do this unless the trustee is selling the house.

[Chapter007]

My parents are in a asset case, they have a last minute offer on the table that came in right before Trustee was to abandon. They received the discharge a few months ago, but as you all know the case is still open. I was wondering what the possibility of having the Bankruptcy Petition Dismissed and the discharge retracted? Since this is still an open case I would imagine a motion can still be filed. I dont want them to lose everything. I have a contingency plan to short sale to a buyer if the dismissal is granted and I would be able to legally collect a commission (I am a Realtor). At least I could rent them something for a period of time until we pick up the pieces. By the way the house is about to enter signed contracts for $1,425,000. Original debt on house is $2.7M. Condition of property is deteriorating and I am confident a Home Inspector will rip property a new one under closer inspection opening the door to concessions on the offer amount (water damage). Can someone let me know if its even worth pursuing the possibility of dismissing a discharged bankruptcy petition on an open asset case? Thanks in advance for a great learning resource mods, long time reader 1st time poster.

Chapter007

[lulabelle]

Thank you. We really would like to reaffirm but I have recently found out that I may be out of a job soon. That would make the payment unaffordable. I'm just hoping I get a final answer before the deadline of the reaffirmation agreement.

[justbroke]

We have a vehicle that we were intending to reaffirm. We will also very likely be an asset case. If we decided not to reaffirm the vehicle, does that mean that they could not repo it until our asset case closed? Or would they be granted a relief of the stay to get it back?

They can't repossess it to the earlier of, your case closing, your case being dismissed, the Trustee Abandoning the asset and you have and intention to surrender, your case is discharged and the Trustee abandoned the assets (via the No Distribution Report), or the lender requests and is granted Relief from the Stay.

In your case, because you marked your intention as "reaffirm" the lender would send a reaffirmation agreement. If you don't sign it, then the lender would file a motion for relief from stay unless your case already closed. That actually puts the lender in a bad position, but people do it all the time.

[lulabelle]

We have a vehicle that we were intending to reaffirm. We will also very likely be an asset case. If we decided not to reaffirm the vehicle, does that mean that they could not repo it until our asset case closed? Or would they be granted a relief of the stay to get it back?

[justbroke]

Hmmm... I'm thinking in reality this may not be true.

If you are No Asset, and you have received a discharge, the automatic stay is automatically lifted as to your assets. The affect of the case closing on assets, only affects assets in an "Asset Case".

The Stay remains in place until the asset is abandoned by the Trustee or the case is closed.

So, let's parse this out. In a "No Asset Case" the Trustee files a Report of No Distribution and "abandons" all assets of the case. So, at discharge, the Trustee has effectively abandoned all property and the automatic stay is lifted.

If the Trustee filed a "notice of assets" and potential distribution, this makes it an "Asset Case". All property remains property of the estate and the automatic stay is in full effect until the earlier of, by Motion of Abandonment by the Trustee and approved by the Court, a dismissal, or the case closes.

[tdawg]

Yes, that's exactly what it means. The Stay remains in place until the asset is abandoned by the Trustee or the case is closed.

(I thought, myself, that the stay was automatically lifted after discharge. This is true, but only to those things abandoned by the Bankruptcy Estate. So unless the Trustee has published a "No Distribution" Report by discharge, the Stay remains in affect for all assets not Abandoned by the Trustee! Of course, this was a circuit court ruling that I read recently. It may not be caselaw everywhere, but it makes perfect sense to me!)

Hmmm... I'm thinking in reality this may not be true. The repo man left a card on my doorstep a few days ago. I called today and they asked about making arrangements to pick up my car. I'm going to leave it for them to pick up tomorrow at a location closer to them. My case still says "No Asset" on Pacer - even though the trustee has not abandoned the assets. I definitely want to cooperate with the repo man. I am discharged but not closed.

[dspii]

The only asset we have is our tax refund being sent directly to the TT. It is about $2700 compared to $47000 in CC debt. What if she chooses to not disburse the funds? Does she then change it to a no asset case? Also, we surrendered our home. Does that come into play as an asset? Will we have to wait until that is sold for our case to be closed? Our attorney told us that as far as we are concerned, we are closed pending the tax refund.

Based on the amount of your refund and your district, the TT may leave your refund alone, but probably not, sounds like a fair trade...at least in my case it is. If the house was foreclosed on, the automatic stay lifted, then the sale of the home will NOT affect your closing, its the banks problem. The TT already sent out a notice to your creditors, once the TT receives your money, they file some stuff, wait a few weeks and your case should close, just like your attorney said.

[bktmom28]

The only asset we have is our tax refund being sent directly to the TT. It is about $2700 compared to $47000 in CC debt. What if she chooses to not disburse the funds? Does she then change it to a no asset case? Also, we surrendered our home. Does that come into play as an asset? Will we have to wait until that is sold for our case to be closed? Our attorney told us that as far as we are concerned, we are closed pending the tax refund.

[justbroke]

Ask AngelinaCatHub how long it takes! It can take a year or two to close an asset case. The assets must be fully administered by the Trustee. If this involves sale of property, recovery or preferences, or any avoidances... this will take a long time.

The notice to the unsecured creditors (credit card companies) was already sent out when the Trustee determined that it was an asset case and that assets were going to be administered. That's why you have that claim bar date.

[bktmom28]

I believe this is the proper thread for this question...

Our case was discharged on January 12th. However, we are an asset case awaiting closing and the last day to file claims is March 3rd. How soon after that date does the case close? We filed in October 2009. Also, what I was wondering is how does trustee disperse the funds? Does she basically send a notice out to the CC's telling them there is money to claim, or does she send them their portions? I was just curious. Thanks!