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Individual Chapter 11 Debtors - No Need for Discharge?
This week I just had my second individual Chapter 11 debtors tell me that
after making their required plan payments, under the confirmed plan over a
period of five years, they do not feel the need to reopen their case to
have a discharge entered. They report that their credit reports state that
their case was "dismissed" (when it was really closed to avoid UST fees,
with the plan to reopen after five years to seek a discharge) and that
their FICO score is over 700. They see no reason to pay me more money and
to pay filing fees and trustee fees to obtain a discharge that they no
longer see as necessary.
I did a little research the first time this happened, but could find
nothing of great concern to argue against this course of action. It would
seem the worst that could happen is for a creditor to reopen the case and
ask the stay to be lifted, or the UST to reopen the case and ask for it to
be dismissed. Either scenario seems unlikely when the debtors have made
all their payments and if either did happen there would seem to be an easy
response.
Any comments or experience to share from others doing Chapter 11 cases?
Thanks,
Link W. Schrader, Attorney
Law Office of Link W. Schrader
P.O. Box 12746
Overland Park, KS 66282
Office: (310) 413-6924
Mobile/Texts: (913) 593-0137
Fax: (800) 796-6450
Admitted to practice law in all courts in California and Missouri, and in
the federal courts in Kansas.
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