Is the Bankruptcy Case Over After a Discharge?


A person filing bankruptcy believes the bankruptcy process is over when the judge discharges them. This is false. A bankruptcy case is over when the judge closes the case, not when the judge grants a discharge. What does a person do now? Contact a bankruptcy attorney in Rockford Il. Here’s why.

A reason bankruptcy cases remain open after discharge is due to the trustee. Your part of the process is complete, but the trustee has more responsibilities to oversee. The bankruptcy estate is active due to outstanding property or assets that haven’t been divided among creditors. The trustee must submit their part of the case saying the administration is complete to the judge for approval before the case closes. Therefore, a discharged person must cooperate with the trustee after discharge. For chapters 13 and 11, the discharged person must pay the court-approved repayment plan in full before the case closes. Most repayment plans last between 3-5 years.

A second reason a bankruptcy case remains open after discharge is pending and/or ongoing lawsuits. Since the lawsuit occurred during bankruptcy, resolve the lawsuit so the case can close. The discharged person is not exempt from testifying or showing up to the case. Additionally, a closed case can reopen if a person provided false information to the court or withheld eligible property. The discharged person can reopen the case too to list forgotten debts.

The goal for a bankruptcy filer is not to reach discharge, but to get the case closed. Contact a bankruptcy attorney in Rockford Il to resolve obligations between the trustee and the client. For best results, the Crosby Law Firm will help clients resolve their bankruptcy claims so the client can concentrate on rebuilding credit and budgeting finances.

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    Author: Kendrick Wilkes

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