No asset cases are the majority of those filed in the District of Arizona Bankruptcy Court. .
They aren't really no-asset cases; but the Chapter 7 Bankruptcy Trustee has reached a conclusion that there are no non-exempt assets in the case which will realize, after costs of sale, at least $800 for the estate (note that newer bankruptcy trustees on the panel may be a little more frisky, and may be willing to administer a case for less dough; they'll keep that up until they figure out that they have overhead).
Now, sometimes a Chapter 7 Trustee takes his or her vitamins, and has lots of energy. In those cases, it's not unusual for a Trustee to issue a No-Asset Report about a Chapter 7 Case, and that tends to cause undue rejoicing in some clients, because they think that the bankruptcy case is now over.
It's a good thing to avoid rejoicing for six months to a year if you get a premature or quick No-Asset Report from the Bankruptcy Trustee appointed in your case.
Because if it seems too good to be true, it probably is.
And as soon as you file your tax return, or receive the tax refund that you expected to lose, and then expected to keep, the Trustee files a Withdrawal of Report of No Assets, and asks to have the case reopened, which the Judge will most certainly do.
So if it looks like Miller Time a little early in the case, stick with Folger's for another six months or so; because the Trustee may have just not noticed that you were on track for a tax refund.
It's hard to be a Chapter 7 Bankruptcy Trustee!
And no, that's not irony.
They aren't really no-asset cases; but the Chapter 7 Bankruptcy Trustee has reached a conclusion that there are no non-exempt assets in the case which will realize, after costs of sale, at least $800 for the estate (note that newer bankruptcy trustees on the panel may be a little more frisky, and may be willing to administer a case for less dough; they'll keep that up until they figure out that they have overhead).
Now, sometimes a Chapter 7 Trustee takes his or her vitamins, and has lots of energy. In those cases, it's not unusual for a Trustee to issue a No-Asset Report about a Chapter 7 Case, and that tends to cause undue rejoicing in some clients, because they think that the bankruptcy case is now over.
It's a good thing to avoid rejoicing for six months to a year if you get a premature or quick No-Asset Report from the Bankruptcy Trustee appointed in your case.
Because if it seems too good to be true, it probably is.
And as soon as you file your tax return, or receive the tax refund that you expected to lose, and then expected to keep, the Trustee files a Withdrawal of Report of No Assets, and asks to have the case reopened, which the Judge will most certainly do.
So if it looks like Miller Time a little early in the case, stick with Folger's for another six months or so; because the Trustee may have just not noticed that you were on track for a tax refund.
It's hard to be a Chapter 7 Bankruptcy Trustee!
And no, that's not irony.
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