Frank Ostroff and Maria T. Ramirez Ostroff

UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF COLUMBIA
In re
FRANK OSTROFF and MARIA T.
RAMIREZ OSTROFF,
Debtors.
)
)
)
)
)
)
Case No. 09-00594
(Chapter 7)
Not for Publication in
West’s Bankruptcy Reporter
MEMORANDUM DECISION RE OBJECTION TO
CLOSING BANKRUPTCY AND DISCHARGE OF TRUSTEE
On August 7, 2009, the debtors commenced this chapter 7 case
(Dkt. No. 1) and claimed as exempt certain real property located
at 3210 Volta Place, N.W., Washington, D.C. 	Thereafter, the
debtors commenced an adversary proceeding seeking to declare the
lien of American Home Mortgage as ineffective to reach 3210 Volta
Place, tenancy by the entireties property, because only one
debtor executed the deed of trust giving rise to the asserted
lien. 	On September 10, 2009, the § 341 meeting of creditors was
held and later that day the chapter 7 trustee issued a report of
no distribution, requesting that he be discharged from further
duties, and certifying pursuant to Fed. R. Bankr. P. 5009 that
the bankruptcy estates in this joint case had been fully
administered. 	Pursuant to Rule 5009, that gave rise to a
The document below is hereby signed.
Signed: November 25, 2009.
_____________________________
S. Martin Teel, Jr.
United States Bankruptcy Judge
Case 09-00594 Doc 35 Filed 11/27/09 Entered 11/27/09 11:48:56 Desc Main
Document Page 1 of 3

2
presumption that the case had been fully administered (and thus
that, upon the court’s discharging the trustee, the case would be
ready to be closed under 11 U.S.C. § 350(a)). 	Then, on November
5, 2009, creditor American Home Mortgage filed an objection to
exemption and filed an objection to the closing of the case and
discharge of the trustee.
In its motion, American Home Mortgage argues that it is
improper to close the case and discharge the trustee because if
the debtors succeed in their adversary proceeding and their
exemption on 3210 Volta Place is overruled, then that property
would be available for distribution to unsecured creditors, which
would then include American Home Mortgage. 	Because the period
for objecting to the debtors’ exemptions has expired under Fed.
R. Bankr. P. 4003(b)(1), I overruled American Home Mortgage’s
objection to exemption. 	American Home Mortgage has not suggested
that it could object to the exemption under Fed. R. Bankr. P.
4003(b)(3), and the trustee, as evidenced by his filing of a
report of no distribution, has decided not to invoke Fed. R.
Bankr. P. 4003(b)(2) to object to the exemption as fraudulent.
Accordingly, 3210 Volta Place, which was wholly exempted, will
not be available for distribution to unsecured creditors
regardless of the outcome of the adversary proceeding. 	Because
3210 Volta place will not be available for distribution to
unsecured creditors and because the chapter 7 trustee has
Case 09-00594 Doc 35 Filed 11/27/09 Entered 11/27/09 11:48:56 Desc Main
Document Page 2 of 3

3	O:\TEEL\Garrett\Decisions\Order Denying Objection to Closing Bankruptcy (Ostroff) v2 (judge edits).wpd
submitted a report of no distribution, there is nothing left for
the chapter 7 trustee to do and therefore no need to postpone
discharging him.
Moreover, the outcome of the adversary proceeding will have
no effect on the trustee’s administration of the debtors’
bankruptcy estates. 	If American Home Mortgage prevails in the
adversary proceeding, then to the extent that it has a lien that
lien will remain unaffected by the debtors’ forthcoming
discharges. 	11 U.S.C. § 522(c)(2). 	Alternatively, if American
Home Mortgage does not prevail in the adversary proceeding, then
it will not have a lien. 	Either way, 3210 Volta Place will be
unavailable for the trustee to reach on behalf of unsecured
creditors. 	As reflected by the chapter 7 trustee’s report of no
distribution, there are no assets for unsecured creditors
(including American Home Mortgage, to the extent it has an
unsecured claim) to receive in this chapter 7 case, and therefore
regardless of the outcome of the adversary proceeding, there will
be no reason for the bankruptcy case to remain open. 	An order
follows.
[Signed and dated above.]
Copies to: Debtors; Debtors’ attorney; Michael Russo, Esq.
(counsel for American Home Mortgage); Chapter 7 Trustee.
Case 09-00594 Doc 35 Filed 11/27/09 Entered 11/27/09 11:48:56 Desc Main
Document Page 3 of 3