Trustee has failed to close my discharged CH7

[LetsClose]

Brief History:
Filed for joint Chapter 7 with my wife in Dec 2009. Case discharged in March 2010.
Contacted Clerk of Bankruptcy Court to determine why case still not closed. I was informed the trustee has still not made an asset determination.

At 341 hearing, trustee was upset that I converted two fully paid off vehicles into two prepaid leases several months before filing. However, nothing arose at that time as an objection and case was discharged. Is it possible he is holding this case open to "re-assess" the car issue (i.e. - looking for a way to collect value of traded cars). He has not asked for 2009 tax return (filed in June 2010).

House is in foreclosure, but cannot attempt to short sell as case is open. My attorney has inquired about closing case months ago, in order to attempt a workout with my mortgage holder. Trustee said he would abandon asset, but I don't want to pay attorney anything else to file motion to abandon asset, etc.

Does anyone have experience/comments on why trustee would just keep case in limbo?

[frogger]

Contacted Clerk of Bankruptcy Court to determine why case still not closed. I was informed the trustee has still not made an asset determination.

There's your answer....

[LetsClose]

Can you comment on why the trustee has failed to make this determination over 1 year later? I see you were an asset case. Was the determination clear immediately?

[frogger]

Was the determination clear immediately?

No, it took some time to get things sorted out. As to "why" your trustee is holding this open, who knows? Someone else may come along and have a better reason than I.

[despritfreya]

You could call the Trustee and ask. But. . . doing so will awake the sleeping dog.

Des.

[AngelinaCat]

Our Asset case was closed one year and three months after we were discharged.

Our case was ruled and Asset case about a month after our 341.

[tcreegan]

Hi LetsClose,

...seen some folks post about this dragging on for over a year or more....

Curious about the short sale mention, did you reaffirm the mortgage?

Tom in Colo

[AngelinaCatHub]

In a Civil act (suit) as well as an AP, if the Plaintiff fails to prosecute the action can be set aside. I am not sure about the Trustee situation, but there MUST be some time limit to wipe or get off the pot. I'm always with Des as he is a good lawyer, but if it were me, I'd rattle his cage. He may be just too busy to deal with your case and tell his assistant to write up the order, one sig, and it's over. Waiting is like 'death by a thousand cuts'. I'd rather gamble and go. 'Hub

[LetsClose]

Tom,
My situation is kinda odd. I had a first and secong mortgage on my house with one lender (both discharged and not re-affirmed). After my business failed I fell behind on payments. Bank began foreclosure proceedings. I filed BK, then they had the stay lifted. The FC proceeded to just short of a summary of judgement.

All along I was trying to gain employment, and once I did (making 20% of what I made from my business when I built the house and took out the mortgage) I went back to the lender to discuss any kind of workout. I offered deed-in-lieu with rent back provision. They stated the house had to be on the market for at least 6 months (in a short sale situation at this point) in order for them to consider deed-in-lieu. As the trustee has not closed the case, he would have to abandon the asset (underwater) in order for me to put the house on the market.
This delay actually had worked in my favor, as the lender stopped proceedings while this was going on, and eventually created a workout that both parties could agree to that did not included deed-in-lieu.
Days short of executing document, original lender sold first mortgage to new investor. Now I'm starting all over.

[tcreegan]

Days short of executing document, original lender sold first mortgage to new investor. Now I'm starting all over.

....arggghhhh...so close then snatched away...

Tom in Colo

[Fallonedward]

If on Pacer its determined that you are no asset case - awaiting discharge , can the trustee come back later and then declare it an asset case. In our case we have exempted everything but just want to make sure, I'm not sitting her all happy that I'm a no asset case and have that taken away from me.

Our Asset case was closed one year and three months after we were discharged.

Our case was ruled and Asset case about a month after our 341.

[AngelinaCatHub]

If on Pacer its determined that you are no asset case - awaiting discharge , can the trustee come back later and then declare it an asset case. In our case we have exempted everything but just want to make sure, I'm not sitting her all happy that I'm a no asset case and have that taken away from me.

Yes the Trustee did this to us. Our enemy wrote many anonymous "tips" about things that were not true. He hit on an item that was long over, but the Trustee dragged it up and we ended in a 2007 interview. Ended up having to pay it back. It was obvious that we were so ignorant about this stuff that the Trustee worked with us. Still cost us 10K.

Even a closed case he can open it in case of fraud, but he better be able to prove it. For the most part your knowledge here will not allow you to make the mistakes we did. 'Hub

[Fallonedward]

So really hub, after hearing your story, I can not rest easy till I receive my official discharge. Dang, I just want to NOT have to worry about this anymore. However since I can barely put food on the table, I'm not sure what the trustee can take, I'm sitting at rock bottom right now

Yes the Trustee did this to us. Our enemy wrote many anonymous "tips" about things that were not true. He hit on an item that was long over, but the Trustee dragged it up and we ended in a 2007 interview. Ended up having to pay it back. It was obvious that we were so ignorant about this stuff that the Trustee worked with us. Still cost us 10K.

Even a closed case he can open it in case of fraud, but he better be able to prove it. For the most part your knowledge here will not allow you to make the mistakes we did. 'Hub

[tobee43]

So really hub, after hearing your story, I can not rest easy till I receive my official discharge. Dang, I just want to NOT have to worry about this anymore. However since I can barely put food on the table, I'm not sure what the trustee can take, I'm sitting at rock bottom right now

allllllll fallon!!!

now hear this...you are going to have a wondrous new years!!!!!! and eve included....

hub's case if you followed it, was turned into an asset case and they had a horrible atty.....from what i recall...she was terrible and put poor hub and Angelacat through terrible awful things....that's NOT your case....so, try and relax...

let's grey goose it at 5....i'll bring the cheese and crackers...LOL!!!!

[Fallonedward]

Tobee, thanks..

This is the month where I have to decide which bills not to pay. Even with declaring BK7 I do not have enough to pay everything with just my salary and hubby's reduced UI benefit now in place again. (when he got the extension from his 26 weeks ending on Dec.1st, our first UI check went down by $75)

I have applied for food stamps but I'm told in my state in can take anywhere from 6 to 12 months to get approval and get the bridge card, simply grand. We have no money to move to a different house, apartment etc.(security deposit for rental, plus now that we declared all of the utility's told me they will require a deposit as well), plus the cost of moving our furniture from one location to another. The total bill came in at $4k

I going to have hubby contact United Way on Monday and see if they can grant us emergency help.

allllllll fallon!!!

now hear this...you are going to have a wondrous new years!!!!!! and eve included....

hub's case if you followed it, was turned into an asset case and they had a horrible atty.....from what i recall...she was terrible and put poor hub and Angelacat through terrible awful things....that's NOT your case....so, try and relax...

let's grey goose it at 5....i'll bring the cheese and crackers...LOL!!!!