Q: Just received a letter in the mail “notice to professionals to file applications for compensation” What does this mean?
My chapter 7 bankruptcy was granted discharge in may. I have a property that is under exemption/protected. I also had to turnover my 2020 tax refund. What does this letter mean?
A: Apparently, assets were collected by your Chapter 7 Trustee, or property was sold in your case, Were you aware of this during the case? Usually when this occurs, professionals are hired to represent the Chapter 7 Trustee (such as a CPA, an attorney) who are entitled to receive payment of their fees for the representation. This requires fee applications to be filed with the Court for approval. If you had an attorney representing you in the case, check with the attorney for more information. This does not impact the discharge.
A: The Trustee likely had some distribution of assets in your case. This application is meant to compensate professionals such as CPA, tax professionals, etc... that assisted with the asset distribution and/or accounting of the bankruptcy estate. If you have an attorney you would want to ask them.
Timothy Denison agrees with this answer
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