Northbrook Bankruptcy Attorney

Another piece of property that the trustee is not really interested in selling is a timeshare states Northbrook bankruptcy attorney. Once again, we are talking about real estate but even more importantly than that, timeshares do not have significant resale value if any resale value at all except in certain circumstances. Many times the trustee will just inquire as to whether or not the timeshare is paid or what week that person has the timeshare for and whether or not there is any outstanding obligations against it. In reality however, the trustee has a duty to administer any assets that are not exempt. Once the trustee makes a reasonable finding that whatever un-exempt property exists is not worthy of administration, he or she can abandon his interest in that property and it will revert back to the individual bankruptcy debtor upon discharge.

So you have a short window of time there where an individual will basically be in a bankruptcy case which is approximately 120 days. During those 120 days, there is a time period where the trustee is going to examine the debtor under oath and ask questions about the documents that were signed as well as all kinds of income, expense, asset and liability issues concerning the debtor as well as the debtor’s financial affairs. If the trustee is satisfied that there are no assets to administer, the trustee will make a finding of no assets and the bankruptcy process will continue.

Once the trustee makes the finding of no assets, any deadline to object to the debts has passed; the clerk of the US bankruptcy court will issue a discharge letter. The discharge letter is a one-page document that basically states that the case has gone through to completion. Creditors cannot seek to collect on any of the debts that were listed in the petition provided they are a dischargeable debt and the debtor is available to continue to make money and go on with their life but from here on forward.

The discharge is the most important saying that the debtor is seeking when filing Chapter 7 bankruptcy and it is the thing that the debtor must hang onto after the case is filed and completed. The reason why the debtor must hang onto the discharge paper is that several years after the case is filed, the debtor is likely going to seek credit in the future. That credit could be in the form of a mortgage or an auto loan or a credit card loan, a furniture loan or an unsecured loan. The lender may pull the debtor’s credit report and see that particular debts are still showing as due and owing on the credit report. This is where the debtor wants to pull out the bankruptcy discharge or make a photocopy of it and give it to that lender showing that the case has been concluded and that those debts were discharged in the bankruptcy case.

Posted in Illinois Bankruptcy |