QUESTION

How long can my chapter 7 bankruptcy case last before it's discharged?

Asked on Apr 09th, 2012 on Bankruptcy - Michigan
More details to this question:
I have filed for bankruptcy for chapter 7 more than a year ago. Due to some mishandling in the part of my lawyer, my situation is currently this: I had a piece of land on my name and there were taxes plus HOA fees for more than $6,000 that the trustee is trying to sell now. The lawyer is telling me that I won't get a discharge for years if the land won't sell. Is that true or can I do anything to get this resolved and rebuild my life? I can't continue to let this linger on my life and would like to get this resolved, but lawyer said don't contact the trustee, and is telling to wait, for years.
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7 ANSWERS

If eligible for discharge, you should've received it already; however, the case can remain open for years before it actually closes.
Answered on Apr 11th, 2012 at 12:36 PM

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Chapter 7 Bankruptcy Attorney serving Milwaukee, WI at Law Offices of Deborah A. Stencel
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Hmm. I'm not sure that's accurate, but it may depend on local rules where you live. In most "asset cases" I have seen, the debtor receives his or her discharge in the normal timeframe, but the case is held open while the estate is administered by the trustee (sometimes for years). However, this does not generally impact the debtor since he or she has the discharge and can move on with life/re-building credit. Call another attorney in the area and ask is my best suggestion. Good luck.
Answered on Apr 11th, 2012 at 12:30 PM

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I have had many cases where the debtor has assets the Trustee was selling. In all of those cases, the Debtor received their discharge but the case remained open. The same should be true in your case unless there is something else that you have not been told or have not mentioned in your scenario. If you don't trust what your attorney is telling you, by all means contact your Chapter 7 Trustee or the U.S. Trustee's office to inquire about the status.
Answered on Apr 11th, 2012 at 12:28 PM

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Glen Edward Ashman
He's correct. Some such bankruptcies stay open for years or even decades. It is completely up to the Trustee.
Answered on Apr 11th, 2012 at 11:53 AM

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Bankruptcy Attorney serving Livonia, MI at Charles J. Schneider, P.C.
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It may not be true because the bankruptcy estate can remain open to receive the asset but you should have received a discharge already. The issuance of your discharge should not be delayed by the administering of the assets of the estate.
Answered on Apr 10th, 2012 at 6:42 PM

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Bankruptcy Chapter 7 Attorney serving Los Angeles, CA at Bereliani Law Firm, PC
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I'd advise you to speak to your attorney, but because of the mishandling issue it's not bad to get a second opinion. You have an asset case from what it sounds like and the Trustee is interested in liquidating the land in order to collect monies and pay off your creditors. Typically in these situations these are your choices: (a) Convert to chapter 13 and pay back the amount the Trustee would've made in the sale over a period of 5 yrs. (i.e. the Trustee would make $100,000 from the sale of your property, you convert to chapter 13, keep the property but you make payments to the Court over 5 yrs time to equal $100,000) (b) Pay off the Trustee. Your attorney can negotiate with the Trustee for an amount you can pay in lump sum to him/her or in 2-3 payments. Your case wont be left open for years to come (and that's not what the Trustee wants) if it is handled right.
Answered on Apr 10th, 2012 at 5:55 PM

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Appellate Attorney serving Grosse Pointe Farms, MI at Musilli Brennan Associates, PLLC
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Chapter 7s normally run through relatively quickly. On the other hand there are exceptions and I must refer you back to your bankruptcy attorney unless you would desire to bring in the entire file, have it reviewed, and received opinion. Obviously a fee would be charged for such services.
Answered on Apr 10th, 2012 at 5:47 PM

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