What is a Trustee’s Report of No Distribution in a Chapter 7 Bankruptcy?

In most Chapter 7 Bankruptcy cases, debtors do not have any property or assets the Chapter 7 Trustee can take and then distribute among the debtors’ creditors. Once the trustee completes his or her investigation into the debtor’s bankruptcy petition and supporting documentation the trustee requests, and after the 341 hearing (also known as the meeting of creditors), the trustee will file a Report of No Distribution with the court. The purpose of the Report of No Distribution is to tell the court the debtor’s creditors will not be receiving any payments. How do you get a Report of No Distribution? Again, a Report of No Distribution from a Trustee means that you have no assets that can be taken and given to your creditors. You either have no assets whatsoever, or you are able to protect the assets you have through exemptions. For example, in Florida, we have a Homestead Exemption, a motor vehicle exemption of $1,000, a personal property exemption ($1,000 when…

Read more detail on Recent Bankruptcy posts –

This entry was posted in Bankruptcy Law and tagged , , , , . Bookmark the permalink.

Leave a Reply