Getting a dismissal - Can we?

[brokentampa]

Our creditors meeting was a nightmare. Our attorney told us it would take five minutes, that we would have to verify our filing and we'd be gone. We knew we were in trouble when the Trustee made an appearance. It was 30-45 minutes of interrogation. It's all a haze now.

We are self employed. He questioned income, all business ventures we have been associated with, several questions about how our house was furnished, about where we leave, about the amount of rent we pay, about insurance policies we own, many question about our tax returns. We weren't prepared for the heavy questioning. Many demands for documents.

Our attorneys have totally failed us. We went in thinking we needed to file a Chapter 13. Our attorney told us it would be terrible to live under a Chapt 13 and seemed to think we could get a Chapter 7.

We're judgement proof. No real estate, no assets, income is protect as retirement income and head of household income in Florida. I don't think I'm ready to live with a 13. (We're 58 and can pick up SS at 62.) It seems at this point we would be better off facing the creditors or doing a CCC plan.

Can we withdraw, get a dismissal? Can't meet with the attorney until next week so we're in a panic. It's obvious that the Trustee thinks that he can squeeze some money from us by stopping payments on our insurance and forcing us to move into a apartment instead of a house.

Thanks for your feedback.

Broke in Tampa

Filed: 09/16/06
301 Mtg: 10/19/06
301 Mtg Continued to: 11/16/06
Unsecured CC debt: 62,000
Secured Toyota: 8,000

[HHM]

In a chapter 7, you can request one, but its not automatic. If both you and the trustee agree on dismissal, its a rather simple matter. Usually the trustee will throw in a stipulation that you not refile a BK for 6 months. Otherwise, you would need to file a Motion with the court to dismiss the case...and you would need a pretty good reason (simply saying, its not what we expected won't cut it).

Your attorney should have probably given you a heads up that self employed persons are generally the most scrutinized in BK. The trustee is looking for improper transfers of assets. But assuming there are no improper transfers...and what not, you should still be able to complete the Chapter 7.

[LostOne0069]

Don't panic. Talk to your attorney about it.

There have been a few people on here who were self employed and had similar requests for documents. It seems to be standard practice when there's a business involved with a debtor seeking chapter 7.

You may find out that after you give him all the copies of everything he wants that he says, "OK" and gives you your discharge.

As for getting it dismissed? Well, just ignore the requests for documents and that'd probably get it dismissed... but of course you wouldn't be able to re-file for a while if you did.

The worst that can happen is you get forced into a chapter 13, don't make the payments and THEN it gets dismissed.

Good luck!

[HHM]

However, just realize that "involuntary" dismissals have different, and harsher ramifications than "voluntary" dismissals.

Unless there really is a problem with your assets (which I understand may be something you wouldn't want to get into here on this forum), you should still be able to ride through the Chapter 7.

Take a few deep breaths...and try to talk to your attorney.

[Hello_It's_Me!]

Don't give up!

BrokenTampa don't give up yet!

As mentioned, the US Trustee gets involved in all cases that for the self employed or anyone that has an interest in a corporation. It's routine!!!

There was someone here awhile back that was under investigation in a Chapter 7 case that had to provide a couple thousand (2000-3000) documents simply because they owned a business.

In they end, that person was discharged, but I think it took like a year or something.

All business owners are examined with fine tooth comb when they file as it would be easy to hide assets in your business.

My biggest concern for you is that your attorney didn't prepare you for this. It's standard procedure for business owners and may even be required by the Justice Department for US Trustee's to perform this examination/investigation.

[Bobby'sGirl]

I expect the same fine-tooth-comb nitpicking on mine

As "Hello" said, US Trustee is likely to want to look over any filing with a business component, current or recent, and my attorney has me making copies of just about everything possible so we are prepared. If everything is legit, no long term consequences are likely other than some delay in discharge/closing.

[SinkingFast]

Add in excess of $100K in unsecured debts with relatively little assets to speak of. UST is keying on those as well.

If you have the documentation, hand it over and wait. As Lost said, others here have been in your shoes and gotten their discharges.

Hang on!!

Call your attny and chat with him/her. Vent here any time you need to.

[no_it_all]

<big snip>
We're judgement proof.

If that is the case, why worry in the first place? Judgement proof means creditors cannot attach assets. Unless you are really worried about your FICO score and want credit again in a couple of years, why not just do nothing?

[brokentampa]

NO_IT_ALL. You're absolutely right. We should have done nothing. Now we will have a bankruptcy dismissal on our credit report for ten years. If we would have dealt with the bad debts on our credit report, they would be gone in seven years....assuming we make no other payments.

Live and learn.

[CindyLou]

Yes, first do not rush into anything to do with a dismissal. I am going to say that probably the worst thing at this point is that they could require you to convert to 13. Then you could decide to ask for dismissal? Im not an attorney, but just be patient, everything may just go through fine. My case was a little "iffy" , although before the new law, but I all worked out ok. good luck,