Asset Case, no Interim Reports...

[RBisDebtFree]

I just read the "The Significance of Closing an Asset Case" sticky and got questions...

I filed a no asset case back on Aug-06, had 341 on Oct-01, case got converted into an asset case and I got an objection to exemptions for my car (attorney got an agreement with trustee on this one and the TT let it go) and $6k cash in checking account. I got my discharge on Nov-11, claims bar date was on Jan-25th-2010, all creditors filed (one creditor filed duplicate claim). Also, trustee knocked the mortgage off my house and is selling the house free and clear now.

I got no interim reports about my assets. Nothing except an objection and a notice that the assets were discovered but it does not mention anything specific about the assets.

Per the "The Significance of Closing an Asset Case", my exempt assets still belong to the bankruptcy estate? I sold some of that stuff already and of course used the money as we had to use it to move. Does it mean that I violated the law? My attorney said that I was ok to do whatever I wanted to with the exempt assets that were not objected to.

Thanks!

[justbroke]

Per the "The Significance of Closing an Asset Case", my exempt assets still belong to the bankruptcy estate? I sold some of that stuff already and of course used the money as we had to use it to move. Does it mean that I violated the law? My attorney said that I was ok to do whatever I wanted to with the exempt assets that were not objected to.

Technically they belong to the Estate until either the Trustee abandons them (by filing papers) or your case is closed (or dismissed), whichever comes first.

Generally speaking, if your Trustee doesn't object to an exemption and the discharge passes, you can usually assume it is safe to do what you want with any assets that were exempt and/or not being challenged, as to value, by the Trustee. I mean, this is the opinion amongst many attorneys. However, that would not stop the Trustee from looking at the property again, but it usually never happens. It's a chance you take, but if your attorney says "good to go", you can usually assume that the Trustee is done with those assets.

It's more a technicality -- of awaiting the closing or strict abandonment -- but in practice, most go by what your attorney told you.

[RBisDebtFree]

I see, thanks for the info!