Q: Funds to divide after discharge.

[Zapata]

Hi...

My BK was discharged Feb 7th (yay!). The trustee was looking into two family trusts to see if there were funds he could take to pay the creditors. So, there was a discharge, but the t'ee was doing a 'diligent' search for funds.

Lucky for me... one trust issued $3200, which I sent to the trustee. He confirmed today that the creditors can file a proof of claim to receive some of these funds. No problem with me on that. Small price to pay.

the other trust is much, much larger -- worth maybe $80K once a particular family member dies. Apparently, the trustee's investigation into these funds resulted in the trust not having funds to pay me, and therefore can't pay the bk court. Phwew.

My question: By filing the inventory and assets, and stating that creditors need to file a proof of claim by June 2006, does that mean that ONCE the creditors file the proof of claims, and the proceeds of the $3200 are divied up amongst them.... does that REALLY mean that my case could be dismissed then?

Hope this question makes sense.

A 2nd question... to be sure... if I do receive the bigger trust fund within a year after discharge, that has to go to the bk court, right? Or is it a year after the dismissal... whensoever that happens (June 2006, I guess).

I just really want that clock to stop ticking, and for that particular family member to remain VERY HEALTHY! LOL

[SinkingFast]

You mean to say discharged and closed.

And the waiting period on windfalls after a Ch 7 is 180 days after close.

First your BK get's discharged by the Trustee. That's a formality of time, more or less. You filed, the Creditors were notified, you had your meeting of the Creditors, 60 days passed, and no adversarial issues cropped up from the Creditors. Generally, that's when discharge comes.

Your BK will be closed when the Trustee get's done with the investigating of your assets and is safisfied there's nothing there to take. Or the Trustee siezes whatever there is to take. Whatever. Once the Trustee is done with you, that's when your BK is closed.

[Zapata]

Thanks so much!

That makes perfect sense! Okay... so, once the money he has is divided....I will look for the case to be closed, and then start counting the 180 days. Man...looks like this will all be over by next Christmas or thereabouts. GOOD!!

[SinkingFast]

I hope that's pretty close to right, Zap.

If I'm wrong, someone will jump in and correct me.

We're on the front side of BK. I'm still learning the terms for the process and the "being done" part.

Generally, you can figure about 120 days from the time you file until you're done with a no asset, no problem Ch 7. If there are hitches, that adds time.