01 Sep 2017

“Dear Angie”: Converted Assets from Ch. 11 to Ch. 7

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Welcome to “Dear Angie,” our new column featuring BMS Sr. Account Manager, Angela Vitale, answering your bankruptcy and software questions! BMS Account Managers are an extremely valuable resource to your practice with bankruptcy expertise and software know-how, and they are only ever a call or email away.

Check out Angie’s latest Q&A below discussing converted assets from Chapter 11 to Chapter 7!

 

DEAR ANGIE

Handling Converted Ch. 11 to Ch. 7 Assets

BY ANGELA VITALE

As an Account Manager over the years I, like my colleagues, have received numerous client inquiries about Handbook procedures, policies, software features and general “what do other clients do” questions. In sharing these questions and answers with our client community, I hope you find them useful and interesting!

 

DEAR ANGIE: How do I handle assets of a Chapter 11 that converted to a Chapter 7 when there are no Chapter 7 schedules filed? Do I use the Chapter 11 schedules?

SIGNED, CONVERTED TRUSTEE

 

DEAR CONVERTED: Great question! According to the Handbook Supplemental Materials: Instructions for Form 1 – Individual Estate Property Record, the assets from the Chapter 11 petition should not be entered on the Chapter 7 Form 1.

The assets listed on Form 1 should be taken from the final report required by FRBP 1019(F); if no such report or schedules were filed, the trustee should list the assets remaining in the case and keep record in the estate file which describes how the trustee determined the remaining assets.

As a general rule, I advise you to reference the Chapter 7 Handbook for any situation you come across, as it is an invaluable resource for Trustees. In addition, always check with your local UST for specific district requirements.

Thank you for writing!
-Angie

 

 

Got a Question for Dear Angie?

Send it to us at BMS@BMSAdvantage.com! You might just see it answered in our next issue.

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