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Closing of a Bankruptcy Case ? Closing means that all activity in the main bankruptcy case is completed. This means that all motions have already been ruled upon, and if a trustee was appointed, the trustee has filed a statement that all trustee duties have been completed.
About 45 days after you've received your discharge, you will receive a document called a Final Decree. It's the document that officially closes your case. Once this document is received, you are no longer in bankruptcy.
After Plan Completion: After all payments have been completed, the Chapter 13 Trustee will file a Motion to Return any Excess Funds to Debtor and to Terminate any Payroll Deduction by Employer. If the Motion is granted, the Court will enter an order granting the motion and issue two notices.
A "discharge" erases your debt, a "discharge order" is the official court form erasing your debt, and the "final decree" is the official court form that closes your case. In Chapter 7 bankruptcy, the court usually closes the filer's case with a final decree shortly after mailing the discharge order.
If your case is dismissed, you are entitled to a refund of any money that is still in the trustee's possession. However, the trustee has to get approval from the court to send the money back to you, and they are allowed to take their administrative fees out of that money before refunding it.
When a Chapter 13 case is dismissed, it is, in the view of the court, as though the bankruptcy filing never existed. The automatic stay that had protected the debtor is lifted; creditors may pounce immediately, with results that include: Collections letters.