Motion to dismiss

[Ifonly]

Just when I thought we were all straightened out, I get the motion to dismiss in the mail. I lost my unemployment benefits at the end of August and let my lawyer know immediately. He filed a motion to suspend payments for six months. After a few weeks of paperwork, red tape, etc. my benefits were reinstated but I lost three weeks, approximately $1,500.00. When you've just started a Chapter 13 with no cash at the outset, you can understand that there is no way to "make up" $1,500.00. Spoke to the attorney, "no problem", rather than the six months, the trustee will let you skip two months - September and October - that's easy to work out. Well, I know my attorney filed the motion to suspend payments because I saw the copy. Today I get the motion to dismiss based on non-payment. Trying to keep my cool. And none of this bodes well for when I finally do run out of unemployment. I've been looking for work, any work, for over 14 months.

[AngelinaCatHub]

Can you convert to a chapter 7? If you cannot pay, you cannot pay. Asking won't hurt, but there has to be a way. Once dismissed, you get all those fun creditors back and law suits to boot. Shall be praying for you. 'Hub

[jwmc1]

Can you convert to a 7?

[Ifonly]

My husband's income (we're joint debtors) is $20,000 above the median but under Part V. Determination of Disposable Income under 1325(b)(2) line 59 - Monthly Disposable Income is negative $3,317.09 (but this schedule used our mortgage payment and we surrendered the house). They used our current rent payment in the schedule determining what we pay the trustee. Our attorney said at the outset based on income, we don't qualify for a 7? Then again, this is the attorney who didn't show up for our first 341. Also, $23,000 of the priority claims (almost half of what we'll end up repaying at $801/month) is back income taxes. Those can not be dismissed in a 7, right?

I just feel like I did everything I was supposed to - called the lawyer, told him about the missing 3 weeks of unemployment, expressed my long - term concern regarding the continuance of unemployment (his attitude seems to be "we'll deal with that then"), told him that I could resume payments in November (I was going to mail out the check today) and I was thrilled that he told me that the trustee would "have no problem with the two payments" especially since it was better than the motion for 6 - month suspension. I wonder if I should have pushed for the 6 - month suspension so I could have four months legally to put aside the DMI in case I have a future hiccup in benefits? I know the lawyer filed the motion for suspension but I never saw a ruling on it?

We have a rental house that we love now and are already resigned to looking for something else so we can save a few hundred a month for when I do lose unemployment benefits - getting a job seems like a pipedream. I've never spent this long without some kind of work since I was 12 years old and delivered newspapers.

[Ifonly]

Lawyer called and said that the motion to suspend payments will be finalized this Wednesday with a "no objection" as no creditors objected and neither did the trustee. When he finalizes that is when it will show that it was agreed between himself and the trustee's attorney that we could skip two payments. He said this letter is generated automatically by the department that receives the payments. He said I'll get it all in writing and that it's a case of "one hand not knowing what the other hand is doing". I will, however, send this month's payment in via money order just so it isn't sent back by the payment people - that would only further complicate things. It's a difficult thing taking the attorney's word for it but as long as I remember to follow up to get the documentation that states all of this, it will be OK (I think). One day at a time.

[Nanzee]

Well I just received a "motion to dismiss" letter today, because the trustee did not receive the information he requested from us at our 341 meeting. Our attorney has the information, and he basically told me the information just crossed in the mail, and well, he was unconcerned. Our court date is Jan 7 - I am still sending out our monthly payment, and will mail out the mortgage payment. Anyway, is this all "the usual" or should we be concerned? If the judge agrees to dismiss, my understanding is we can just file again, if we choose? Thanks to anyone who answers on Christmas Eve!

[rrockinggramma]

hopefully the attorney will get it all straightened out by Jan 7. Stay on top of it. You can refile but what a hassle if you don't have to.