Dave Says: Trustee Refuses to Close Case

Dear Dave,
Some close friends of ours filed Chapter 13 bankruptcy a few years ago. They paid everything in February, but the trustee refuses to close the case. Can the trustee do this, and if so, why would it happen when they’ve paid everything off?
-- Chris

Dear Chris,
These folks need to go directly to the trustee and ask point blank why their case hasn’t been closed. I know several Chapter 13 trustees, and for the most part they’re not unreasonable people.

They DO have very strict laws they must abide by, though. It could be something simple like paperwork that needs to be signed. The bankruptcy court in their area might even require a voluntary dismissal on their part before the trustee can close the case.

In that event, the next move is theirs – not the trustees!
-- Dave