had 341 meeting and case could get dismissed?

[hopeful316]

I was wondering if if my case might get dismissed. During the 341 meeting, the person who was presiding and she wasn't the actual trustee said that I need to provide my 2011 tax return and my rental property lease agreements, which I will provide next week as I am getting my taxes done this weekend. I got a letter from the actual trustee saying that she objects to my plan and it could be dismissed because I didn't submit my paystubs from july 2011- aug 2011, my tax return for 2011, lease agreements, two bank statements, I guess I missed one month. It also states that I need comparable sales listings for my rental properties, Statement of financial affairs: Line 3: List payments to mortgages if current, which I am. Because of this it says I failed to cooperate with the trustee and recommends my case get dismissed. When I turned in my paperwork, I submitted everything that the questionaire was asking, bank statements, paystubs, tax returns, etc. My lawyer told me that I this was to be expected and would need to turn in the additional info. Is this normal though to get a letter from the trustee if you're missing paperwork?

[justbroke]

It's normal to get letters from the Chapter 13 Trustee requesting documentation while the Trustee threatens dismissal for lack of cooperation (but in a mild tone). You just adhere to the requests for documentation and it's that simple.

If you handed all the specific things the Trustee just asked for to your attorney, then they just "forgot" to send it. If these items are "new" requests, then just adhere to the request. No need to be concerned unless you can't produce the documents. Since you are represented by an attorney, s/he will insure that your case isn't dismissed for this additional documentation... unless you are actually witholding the documents.

It sounds as though you didn't produce the document "quick" enough and that anything that you did provide, was not all that was requested.

[karm43]

Did you attorney give your paystubs back?

[hopeful316]

no he didn't, but I can get copies easily to give to the trustee. I have another another question regarding the lease agreements, will the trustee or court notify my tenants that I filed for bankruptcy?

[TheBajan]

no he didn't, but I can get copies easily to give to the trustee. I have another another question regarding the lease agreements, will the trustee or court notify my tenants that I filed for bankruptcy?

Yes.

[Slingerland]

no he didn't, but I can get copies easily to give to the trustee. I have another another question regarding the lease agreements, will the trustee or court notify my tenants that I filed for bankruptcy?

Yes.

I wonder whether that is accurate or not. I understand the Trustee will need leases to verify the income against banking records, but if your rentals are being operated under a company with a separate TIN, why would the trustee notify the tenants? Aren't they creditors (security deposit) of the rental company, not you? And the rental company didn't file bankruptcy.

Of course, if you're running the rentals as a sole proprietorship, then I can understand the Trustee notifying the tenants.

In my case, if the Trustee notified the tenants, I have at least two families that wouldf panic and break their leases. And one tenant whose new husband (real sleaze) would look for a way to screw me out of my rent (he's a real piece of... work... and no, they won't be renewed when their lease expires.)

[TheBajan]

I wonder whether that is accurate or not. I understand the Trustee will need leases to verify the income against banking records, but if your rentals are being operated under a company with a separate TIN, why would the trustee notify the tenants? Aren't they creditors (security deposit) of the rental company, not you? And the rental company didn't file bankruptcy.

Of course, if you're running the rentals as a sole proprietorship, then I can understand the Trustee notifying the tenants.

In my case, if the Trustee notified the tenants, I have at least two families that wouldf panic and break their leases. And one tenant whose new husband (real sleaze) would look for a way to screw me out of my rent (he's a real piece of... work... and no, they won't be renewed when their lease expires.)

I can only speak to my own situation. My tenants were notified. I was afraid the would panic also so before they were notified by the court, I contacted them and explained the situation. That worked out fine for us. They are good tenants who are planning to stay for a while so we are lucky to have them. The last tenants we had to evict. That was not fun at all! Anyway... we were required to show the lease agreement to the Trustee also. I only have the one rental property so I don't even run it as a sole propriatorship. I file a schedule E. Hope that helps.

[hopeful316]

I did speak to my attorney and I asked him the same question and he said that the court/trustee won't notify the tenants. He said they only look at the lease agreements as you said to verify income against bank statements. I have two rentals one that is through a property management and the other I rent it out to my relatives. My relatives don't know that I filed for ch 13, but I think now would be the time to talk to them about it and be upfront just in case the court does send them a letter, I don't want them to be caught off guard.