trustee motion to dismiss

[noagan09]

Were 2 years into our case..never been late on payments or anything. We received a letter stating the trustee filied a motion to dismiss stating our current plan will not meet the repayment requiremens originally filed in our plan.

contacted our lawyer he said they will find out what we owe that is above the original plan and file an ammendment.

Has anyone gone thru this..is it routine? should i be worried?

Kinda weird were two years in and now they find something...

thoughts anyone?

[kornellred]

While a trustee's motion to dismiss is not unusual (since the trustee is usually the one who makes such a motion), the reason you state for the motion seems a little bit odd. It sounds like there was a mathematical error related to the plan payment amount. This should call for a modification, not a dismissal.

[noagan09]

While a trustee's motion to dismiss is not unusual (since the trustee is usually the one who makes such a motion), the reason you state for the motion seems a little bit odd. It sounds like there was a mathematical error related to the plan payment amount. This should call for a modification, not a dismissal.

Thats what he says will probably happen i guess my question is if my lawyer submits the ammendment to correct the error can the trustee simply deny it and dismiss my case?

I can afford to make whatever the change is i guess its only going to be about $3000 spread out over 3 more years

[debtfreeindy]

If your lawyer files an amendment and the Trustee doesn't accept it, it will be the judge, not the Trustee, who decides who is right and what should be done.

[justbroke]

This actually happens more often than people want to think it does! The Trustees usually do some accounting annually to determine if the plan is still feasible. Infeasibility can happen for many reasons including a "step-plan" that was calculated wrong, or late filed priority claims (IRS) that were not factored properly into the plan.

Your attorney will find out what the issue is, and then adjust the plan. This usually involves an increase in plan payments. Just work with your attorney and find out what the major issue is.

Remember, the Trustee can not dismiss a case! Only the judge can do that. The Trustee can only petition the court and present evidence that shows that the plan is infeasible.

[noagan09]

This actually happens more often than people want to think it does! The Trustees usually do some accounting annually to determine if the plan is still feasible. Infeasibility can happen for many reasons including a "step-plan" that was calculated wrong, or late filed priority claims (IRS) that were not factored properly into the plan.

Your attorney will find out what the issue is, and then adjust the plan. This usually involves an increase in plan payments. Just work with your attorney and find out what the major issue is.

Remember, the Trustee can not dismiss a case! Only the judge can do that. The Trustee can only petition the court and present evidence that shows that the plan is infeasible.

From what it looks like there were miscalculation... what was claimed vs whats in the plan...being the claim ammount is higher than whats planned. He said typically worst case your payment goes up which is no problem for us its just stressfull for us. you think everything is ok then blam..

I was just wondering if they file an ammendment to our plan and for some reason they say no still.. but i guess that wouldnt make sense would it

[justbroke]

The Trustee can always complain, but it goes before the judge and the judge decides. Trustees are over-ridden many times in the court by well-prepared attorneys. Your attorney sounds like s/he is on top of it. Relax.

[noagan09]

Just broke one more question. While our attorneys are working o nthis i was looking at the 13data center site for our case. I did the math and found that $3200 claimed but not on the plan. I dont think that too much $$ so is that what our attorney will work into our plan over the next 3 yeas ?

[justbroke]

It depends on what type of claims those are secured, priority or general unsecured claims; whether you're in a 100% plan; and if those claims are "allowed" claims. That may be what the Trustee is complaining about. Interesting this is, that if this was simply a few missing claims, not in Plan, why didn't the Trustee contact your attorney earlier, rather than go the dismissal route to start with? Or did that already happen.

[noagan09]

they are 3 secured claims we are paying back 100%. 2 morgage and 89.00 in interest on an auto loan. The differnce is what was claimed vs what was scheduled in the plan. I dont know why she didnt contact him probably if she did so that she wouldspend all her time doing so for everyone.

Im just trying to get some feelers from people. Im assuming they would get the difference owed and ammend the plan.. correct?