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.

[url=http://pacer.psc.uscourts.gov/]PACER Service Center Home Page[/url]

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.