Order on Objection to Conversion to 13

[CleanedOut]

Hello group,

I would really appreciate some help. My husband filed Ch. 7 in April, 2009. The trustee seems to truly be a terrible person and has sued my husband's mother, an old woman, to recover a "preferential payment" made almost one year before filing. His lawyer talked to the attorney for the US Trustee whose advice was to convert to a chapter 13 and pay a settled amount to make the suit against his mother go away. We do not believe the payment was preferential primarily because my husband was not insolvent at the time. But he filed for a conversion to Chapter 13 anyway so as not to hurt his mother.

Surprisingly, shortly after, the US Trustee objected to the conversion stating the adversarial proceeding as a reason and stating if a settlement was reached regarding the alleged preferential payment, the US Trustee would drop the objection.

Six days after the Objection to Conversion, an Order was issued by the Judge Denying the Motion to Convert.

Can they do that? I thought we had 20 days to respond? My husband did not have a chance to answer or anything? Where would I find the law regarding these time limits? What should he do now?

I really appreciate any help!!
Signed,
Cleaned Out

[mtbc]

Seems like you could go with the chapter 7 thing and respond to the initial objection stating that it's not an avoidable preference because you weren't insolvent -- and be prepared for them to look at your assets and liabilities at that time and see that you're correct. The suit is one thing, but if you object that the money's not recoverable because you were solvent at the time, I thought it is up to the trustee to show otherwise (which it sounds like they won't be able to do)? You can expect them to try things just to see what they can shake loose, they don't expect to win them all.