Expert: Bankruptcy Services - 1/31/2012

Question
QUESTION: I am a creditor, and the debtor had the courts "close" the case to avoid the Trustee's fees(under a chapter 11 case in NJ). There are still two pending cases, one of which is against the debtor for fraud (to overturn the confirmation). Why would they close the case if there are still two pending cases?

ANSWER: Are you absolutely sure that the adversary actions were closed in addition to the  underlying bankruptcy case?   It is not uncommon for a bk case to be discharged, closed, dismissed, etc., and the adversary cases springing off of that bk to still be active.    You can call me today (Sunday) and I can look it up on the computer to see what the status of those cases are.   I will not charge you to do so.   You can call me at this number:  915  261-3893.

---------- FOLLOW-UP ----------

QUESTION: Thanks for your response. I did not see it till now, sorry. I was not clear, they did not close the adversary cases only the actual bankruptcy. What is striking to me is that one of the adv. proceedings is for the major fraud that the company did. so why would they close the bk case?

Answer
Again, there is no way to answer your question without more information.   If you call me we can look up the case and see what is going on.     Depending on what we find, you may be able to still do something as a creditor.   It just depends on what has happened already.