In fact, in cases where assets are being liquidated and distributed to creditors, the cases can be open for years . Unless the Trustee has formally abandoned (given back) assets to the debtor prior, they belong to the Trustee until the bankruptcy case is CLOSED, which occurs after the discharge is entered.
How long can a Chapter 7 case stay open?
Most Chapter 7 cases last between four and five months . But there are exceptions. When compared to many other legal matters, a Chapter 7 bankruptcy is a relatively quick process. As a general rule, you should expect your case to last approximately four to five months.
How long can Chapter 7 trustee keep case open after discharge?
Approximately 90% of chapter 7 cases involving individual debtors are no asset cases. In a no asset case, the court generally closes the case approximately 45 days after the discharge is entered, unless there is ongoing litigation or some other matter which keeps the case open.
Can you sue a Chapter 7 trustee?
The Chapter 7 bankruptcy trustee can also pursue claims on your behalf . ... In this example, the Chapter 7 bankruptcy trustee would sue your sweet grandmother and force her to repay the court the money that you sent to her within a year prior to your bankruptcy case in order to pay off the loan she had made to you.
Does Chapter 7 trustee check your bank account?
You should disclose any payments to insiders on your Statement of Financial Affairs (Official Form 107). Bankruptcy trustees will also look through your bank statements to see your cash deposits and withdrawals .
Can the trustee take my tax refund after filing Chapter 7?
Any return that results from income earned after filing for bankruptcy is yours to keep. A tax refund that's based on the income you earned before filing will be part of the bankruptcy estate no matter if you receive it before or after the filing date. Tax refunds go to the estate.
Can Chapter 7 be removed from credit before 10 years?
A Chapter 7 bankruptcy can stay on your credit report for up to 10 years from the date the bankruptcy was filed , while a Chapter 13 bankruptcy will fall off your report seven years after the filing date. After the allotted seven or 10 years, the bankruptcy will automatically fall off your credit report.
How does a Chapter 7 trustee get paid?
A Chapter 7 trustee receives a nominal portion of the debtor's filing fee and a percentage of the debtor's property sales proceeds, plus costs . A Chapter 13 trustee receives a percentage of the monthly amount the debtor pays creditors through the Chapter 13 repayment plan.
Can you reverse a Chapter 7?
A Chapter 7 bankruptcy case isn't like other court cases. If you file for Chapter 7 bankruptcy, you must be prepared to complete it because, unlike Chapter 13 bankruptcy, you don't have the right to back out. Generally, you can only dismiss your Chapter 7 bankruptcy if you have a good reason (good cause).
Do they freeze your bank account when you file Chapter 7?
The banks' position is that all of the debtor's assets come under the control of the bankruptcy trustee immediately after filing for Chapter 7 until the debtor receives a debt discharge, and that freezing the accounts protects the funds for the trustee .
How much cash can you keep when filing Chapter 7?
There is not a specific cash exemption available under federal bankruptcy exemptions. However, there is a wildcard exemption you can use to protect up to $1,325 in any property. You can also use up to $12,575 of any unused portion of a homestead exemption to protect cash in a Chapter 7 case.
How much money can I have in the bank when I file Chapter 7?
There is no limit to the amount of cash you can have in your bank account to be able to file a chapter 7 bankruptcy.
Can a trustee take a stimulus check?
A bankruptcy trustee in a Chapter 7 case can collect the stimulus check and distribute it to creditors , while a trustee in a Chapter 13 case can require a debtor to include the amount in their repayment plan.
Will trustee take my tax refund?
If your plan pays less than 100% to creditors, the trustee can keep your tax refund . It won't reduce your plan payment, however. Your creditors will receive the percentage of your total disposable income, which will include your tax return, that they're entitled to under your plan.
What do you lose when you file Chapter 7?
Filing Chapter 7 bankruptcy wipes out most types of debt , including credit card debt, medical bills, and personal loans. Your obligation to pay these types of unsecured debt is eliminated when the bankruptcy court grants you a bankruptcy discharge.
What is a 609 letter?
A 609 Dispute Letter is often billed as a credit repair secret or legal loophole that forces the credit reporting agencies to remove certain negative information from your credit reports. And if you're willing, you can spend big bucks on templates for these magical dispute letters.
