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cfortunato
cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
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How long does a bankruptcy trustee have to close a Chapter

This answer was rated:

How long does a bankruptcy trustee have to close a Chapter 7 filing?

cfortunato :

Hi - my name is XXXXX XXXXX I'm a Bankruptcy attorney here to assist you.

cfortunato :

There is no time limit by which a Bankruptcy trustee must close a Bankruptcy case.

cfortunato :

I know a trustee who kept a case open for 7 years.

Customer:

What options do I have to get this process moving?

cfortunato :

Do you know why the trustee is keeping the case open? Is it because of assets or potential assets?

Customer:

I turned over some undeveloped real estate to him, which I think he has found difficult to survey/appraise/sell. It was unencumbered.

cfortunato :

In that case, there is really nothing you can do to speed up the process of closing the case. You should know, though that once debts have been discarged, there is no advantage to having the case closed, and no detriment to having the case remain open. To a Bankruptcy filer, the most important event is the discharge, not the case closing.

Customer:

I still have a question: I chose to retain rental property that I owned prior to the bankruptcy, and I would like to sell the one that is furthest away (and therefore most difficult to manage). Can I do that before the bankruptcy is closed?

Customer:

If I could sell for more than I owe on it, would the proceeds be mine or the bankruptcy trustees?

cfortunato :

Has the trustee abandoned that property?

Customer:

No

Customer:

I did request, however, for him to 'release

cfortunato :

You cannot sell any property until the trustee abandons it.

Customer:

it. (perhaps abandoned is the correct legal term

cfortunato :

Yes - abandon means release.

Customer:

If he would 'abandon' it, and if I could sell it, would the proceeds (if any) be mine or the trustees?

cfortunato :

Once the property is abandoned , the proceeds of any sale would belong to you.

Customer:

ok; that's what I needed to know. From a trustee's perspective, what motive could he have for not wanting to abandon the property

Customer:

?

cfortunato :

The same motive you have for wanting him to abandon it - the fact that he may be able to sell it for a profit. Don't forget - trustees get 10% of the value of any money they obtain for sales of property and assets. (And the rest goes to your creditors.)

Customer:

Thanks for your answers; have a great day!

cfortunato :

You're welcome!

cfortunato :

And you have a great day also!

cfortunato and 2 other Bankruptcy Law Specialists are ready to help you