Chapter 13 Dismissal with appeal

[Alabama1]

Alabama Chapt 13: A 67-yr old widow living on $700 Social Security paid $109 a month for 60 months & was notified her Chapter 13 was being dismissed because the payments did not pay debt in full and needs to pay $11,000 more in a balloon payment to creditor? Her lawyer (scum) will not even contact her nor file an appeal. She does not own anything except a car worth $2,500. She put her $50,000 home in her daughter's name 23 months before filing Chapt. 13 due to her near death from heart problems and 2-yrs after her husband died. She was trying to put her affairs in order. What can the only creditor in bankruptcy do to her now that her Chapt 13 is dismissed? Chapt 13 was agreed to in court to be 60 months & she paid all 60 months the court orderd $109. She signed a loan for her now ex-son in-law to buy a house trailer & yes, he walked out on the promised trailer payment in the Widow's name and divorced her daughter.

[justbroke]

That's sad to hear, but there's really no appeal to not having paid the "plan base" during a Chapter 13. You either did or didn't pay. Now, that could have been caused for a lot of reasons, including that the plan was never feasible, or the attorney actually created a plan that had a balloon at the end. Some Districts will allow plans to have large balloon payments at the end, expecting the debtor to refinance their home to pay the balloon. When real estate was really good and appreciating at 10% a year, this was easily justifiable.

Now, I don't understand personally what "communication" problem is going on between her and her attorney. She (and perhaps someone should go with her) needs to go sit in her attorney's office until he shows up. After 5 years, I've seen where even the attorneys have died, left the practice, or left the legal profession, and the debtor never notified. But, I'm guessing that her plan included "monitoring" payments to the Chapter 13 attorney.

She may have to pay more fees for the attorney to do anything. However, an infeasible plan is an infeasible plan. The Code doesn't allow for a plan to extend beyond 60 months. It's a tough place and I don't have any suggestions.

Who is this only (single) creditor? How much was owed? I can't believe someone filed bankruptcy for a single creditor with less than $6000 in payments over 60 months, just seems odd. In any event, the creditor can come back at her, start full collections, add 60 months of accumulated by deferred interest, and it will be like nothing happened.

[Alabama1]

Greenfield Finance Ltd, Birmingham, AL is the creditor. The loan was on a house trailer that was reprocessed, and she filed bankruptcy because they said she still owed $16,000 dollars on the loan after the trailer was resold. She wanted the creditor to stop calling her and did not know anything else to do but file bankruptcy. She is illiterate and found this scum attorney that did not even explain the bankruptcy to her--had his staff tell her what was supposed to be involved and in court he did not do anything except give documents to the judge--did not say a word. Last week I saw the paperwork from the Chapter 13 Trustee and it was for only one creditor--house trailer loan. The attorney has a reputation of being incompetent and I spoke with an individual that said he bought illegal drugs from that attorney 8 years ago--I guess a side job. I want to get my aunt's bankruptcy discharged--I live in another state and trying to find out as much as possible to help long distance. If she can't get it discharged, I think she is judgment proof and can just let that one creditor call until they go bankrupt.


Attorney's answering machine messages says "Do Not Leave a message, we do not check messages or will not check for up to 2 days if then." His staff answers the phone at times, makes appts but he is gone, will not call back, will not honor appt. I have called 8 times, sent 6-e-mails, made 1 conference call appt---all ignored. Chapter 13 Trustee called him and sent e-mails--all ignored. He still has a practice but I think my next call will be to the Alabama Bar. His wife is his receptionist.

[justbroke]

Yes, it sounds like the Bar is the next place. That's just sad that she didn't understand and perhaps the attorney setup the plan to fail. Maybe you can get a hardship discharge if she's that old and has medical conditions including senility. You should check on the hardship discharge.

[momofthree]

Why would someone with an income of $700 be in a chapter 13 in the first place?

[Alabama1]

Lawyer got $700 from her --- scum lawyer that might have a drug selling issue I just found out about.

[justbroke]

Why would someone with an income of $700 be in a chapter 13 in the first place?

Yeah, and why in what looks like a 100% plan. Something is NOT right. This case needs to be reviewed. It should had been a Chapter 7.

Yep, now that I think of it, she paid $109/month for 60 months or about $6,000 plus the trustees fee (about 9% or $540.00). The only thing in the BK was $16,000, so that means $10,000 left. Now the Trustee is saying that the widow is $11,000 short. Something very very wrong.

Someone with only $700/month in income no way has the ability to fund a Chapter 13 plan.

I would suggest that you go to the Bar and ask for a Pro Bono attorney to look at this case. Perhaps the Bar can "nudge" the current attorney, but there is something very seriously wrong.

[Alabama1]

Yep, The Alabama Bar is a good place to start and perhaps contact a Federal agency. Why would a judge allow such a case as this with someone with below poverty income? I am so angry. Have been told this attorney did not appear in court for a divorce case but sent his non-attorney staff member.

CASE SUMMARY:
Paid to Creditors: $5,172.61
Paid to Attorney: $1,091.00
Refunded to Debtor: 0.00
Paid to Trustee: $499.96
Balance on Hand: $113.99
Court Filing Fee: 0.00
Court Adm. Fee: 0.00

CLAIMS AND DISBURSEMENTS

1. Name: BankAmerica Housing Services: Type: U Claim Amount : $14,142.99 Value: 0 Prin Owed:$10,351.12
2. Name: North AL Bank: Type: S Claim Amount : 0 Value: 0#3,800 Prin Owed $03. Name: [lawyer name deleted by moderator], Huntsville Lawyer: Type: S Claim Amount : $1,380.74 Value: $1,380.74 Prin Owed: $0

[justbroke]

I would edit out the names of people in that posting. We try to protect even the guilty here.

[Alabama1]

Thanks, I will not use names in the future but did not see the edit for last post--wonder if time has expired?

For Alabama, the homestead exemption is limited to 160 acres, and the maximum value that can be claimed is $5,000--how does this apply to someone wanting to keep their home if it is paid for? Could a person lose their property in a BK Chapt. 13 if their paid for home is appraised below $125,000--will they be forced to sell it?

If BK is dismissed after she paid 60 months, can the creditor get another judgment against my aunt's balance $10,351.12?

[lrprn]

Wow, what a mess. You most definitely need to notify the Alabama bar about what has happened here - a clear case of misrepresentation and unethical conduct for sure.

Here's the contact information you need to report a lawyer for misconduct and ethics violations in Alabama:
Alabama State Bar
General Counsel
Center for Professional Responsibility
415 Dexter Avenue
Montgomery, AL 36104
(334) 269-1515
Fax: (334) 261-6311
Website: www.alabar.org

When you make your report, report the facts as accurately as possible and do your best to keep your emotions in check. The facts in this case are so egregious, they will speak very powerfully for themselves.

This woman is very lucky you are doing your best to take care of her interests in this terrible situation. Please keep us posted about what happens as this moves forward.

[LadyInTheRed]

Because you aren't in the state, you might also contact the Family Protection Unit of the Attorney General's office to see if they can help:

http://www.familyprotection.alabama.gov/elder.htm

[Alabama1]

Thank you all for the help. I will heed all advice. Can't believe there are billions wasted on banks, CEO bathroom remodeling, etc., when there are real people who can't even get a deal from an attorney to say hello. I guess lawyers charge by each letter in the word hello--$1,000 a letter. No refunds or exchanges except if you are willing to drain your blood when the bank account is dry. Has anyone ever heard of a lawyer/court giving a refund, even Wally-Mart will let you bring back a broken product or did not fit.

Your comments have inspired me with my aunt's situation. Again, THANK YOU!

[Alabama1]

I called the Family Protection Unit of the Attorney General's office and left a message, but have not heard yet--will try tomorrow. I am preparing a statement to the Alabama Bar and a letter to the Attorney General of AL. Wonder if the state Senator & Rep could help?

Per the Chapter 13 Trustee staff member, I faxed a letter to the attorney & to the Assistant US Bankruptcy Administrator of Alabama--Have not heard anything yet. The following is the letter I FAXED to the attorney & Assistant US Bankruptcy Administrator & I hope I did not hurt my aunt's case with the letter:

Dear Scum Attorney's Name --- I was nice and put the attorney's name:

Since I have not heard from you, I am again requesting you file an immediate Motion to Discharge Chapter 13 Bankruptcy based on hardship, Case No. _____, (Name of Aunt) should not bear further financial responsibility imposed on her by the mishandling of her case.

No one conveyed that (Name of Aunt) would pay $11,000 plus 60 monthly payments. There was never a material breach of missed payments, as she understood. A motion to discharge based on hardship should have been filed years ago by your office.

Expecting an illiterate widowed senior citizen living below poverty (monthly income: $700) to remedy the mistakes of the legal system is unbelievable. (Name of Aunt) successfully completed plan payments on or before 5-years from commencement of her case. No reasonable person would expect a balloon payment of 75 percent of the original debt after completing the 60-month plan.