Ch7 rec'd in mail today~Notice of Need to File Proof....

[lilgoose]

Notice of Need to File Proof of Claim Due to Recovery of Assets

This came in the mail....

To the Creditors and Parties in Interest:
The initial notice in this case instructed creditors not to file a proof of claim. Assets have since been recovered by the trustee and creditors who wish to share in distribution of funds must file a proof of claim with the clerk at.....Last date to file claims is: May 22, 2006

What does this mean? I know that we sent our returns to the trustee and just sent yesterday the portion of our refund that was requested. Does this mean that is what the trustee has recovered?

[StaciMM]

Once your case is made an asset case (and if the trustee is taking a part of your refund, yours now is) the court notifies the creditors to file a claim. The assets are divided among those who file claims. For any that don't file a claim, they don't get a cut.

[lilgoose]

Staci, this is pretty normal then? Does this mean that it could be closed after that date? Also, is Pacer worth signing up for? If I understand it right, it costs every time you check things out. If the bk is supposed to be public notice, then why do we have to pay to keep checking on the status?

[StaciMM]

Public doesn't mean free access, LOL! I think in most BK courts (maybe all?) you can log in to Pacer for free. To have your own account, though, that's another story.

Your case should get closed after the $$ is distributed to the creditors who file a claim. Not sure how long that will take.