Trustee's Report of No Distribution & What It Means For Your Case

If you're a debtor in a Chapter 7 bankruptcy case, the trustee may file a report of "no distribution." This means that there's no money left after paying the trustee's fees and administering the estate to make any payments to creditors. But don't despair—a no distribution report doesn't necessarily mean your case will be dismissed.

In most Chapter 7 cases, the trustee's job is to collect and sell the debtor's nonexempt property and use the proceeds to pay creditors. If there's not enough nonexempt property to pay creditors in full, the trustee may file a report of no distribution.

A no distribution report doesn't mean your case is automatically dismissed. The court may give the trustee more time to sell property or may convert your case to a Chapter 13 bankruptcy, which would allow you to repay your debts over time.

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