Sacramento Bankruptcy Attorney Talks About Finishing a Bankruptcy
Sacramento Bankruptcy Attorney Talks About Finishing a Bankruptcy
When a debtor files a Petitioner for Bankruptcy, the US Trustee is now officially the owner of all of the debtor’s assets. The US Trustee is so intertwined with the debtor’s finances that the debtor may not even make a major purchase, such as a new car, without the US Trustee or Court’s permission. This raises the question, once the US Trustee is involved in a debtor’s business, how does one get the US Trustee out?
The real answer is that the US Trustee is involved until the end. The end, in a bankruptcy, is either when the debtor’s bankruptcy case is dismissed or discharged. A dismissal occurs when the debtor’s bankruptcy petition is not granted for various reasons. One reason could be that the debtor voluntarily dismissed because they no longer wanted the bankruptcy. Another reason could be due to noncompliance by the debtor in one shape or form which causes the Court to dismiss the petition. In either case, a dismissal usually means that debtor may refile their bankruptcy petition although a waiting period may be put in place. Once dismissed, the US Trustee no longer has any interest or control over the debtor’s assets.
In a discharge, the Bankruptcy Court makes a final ruling in favor of the debtor and has discharged all remaining debts. For a Chapter 7 bankruptcy, the discharge will occur relatively quickly and can happen within 90 days of the filing. For a Chapter 13 bankruptcy, the discharge is not complete until all the plan payments are done. In either case, once discharged, the US Trustee no longer has any interest or control over the debtor’s assets. That means the debtor is free to go shopping for a new car or sell whatever assets they walk away with.
If you have a question regarding discharge please contact Sagaria Law at 1-800-941-6730 for a free consultation or visit us at www.sagarialaw.com. Our team of Bankruptcy Attorneys can assist you with all aspects of your case. We have attorneys in San Mateo, Monterey, Fremont, Salinas, Sacramento and San Jose.
