Notice of Possible Dividend?

[cacreditor]

What is the name of your state (only U.S. law)? ca

I am a creditor in a chapter 7 case. the case was closed as a no asset case.

I am still in disbelief that the bankruptcy trustee and judge would rubber stamp this as a no asset case. the debtor was able to get a complete discharge, keep all of his inventory, 3 cars and whatever monies he had in the bank. what is wrong with the judicial system? all a debtor needs to do is misrepresent his assets and "appear" insolvent.

a few months later I received a notice of possible dividend? what is this? how is this possible when they ruled as a no asset case? is it divided equally among the creditors? how is that decided?

 

[bigun]

Register for a pacer account and you'll have access to every document filed in the case.

PACER Service Center Home Page

Any dividend that reaches unsecured creditors is divided equally. It costs nothing to file a proof of claim.

 

[cacreditor]

thanks for the response. I actually have a pacer account. I was unsure what a notice of dividend means?

if the case was dismissed as a no asset case then how is there dividends after the case has been discharged? just wondering what a notice of dividend means?

 

[bigun]

It could be as simple as atrustee claiming some portion of any income tax refund. It's pretty routine if, you file in the 3rd qt. of the year forward, that a trustee will try and get a portion of any refund. WHat happens is, the case is discharged but, not closed until the asset is turned over and then distributed to creditors.