Update

[attila]

I got my file from the paralegal this morning.

I got a really disconcerting package from the court based on the 2004 hearing that is a motion to dismiss...but I am not sure what that means for me.

I have the rescheduled 341 hearing on Tuesday at 10am. I will be there.

I have set up two consultations with attorney's recommended by the local state bar certified lawyer referral service.

I will be taking my file and what I have from the court for them to review. Upon talking to the first lawyer - upon discussing my situation, I told him the attorney name and that I only met him once and that I had been primarily dealing with a Paralegal in a specific city here and he immediately knew WHO and the name of his firm. When I picked up my file, I mentioned who I was seeing tomorrow and the paralegal did not recognize the name so hopefully this is a good sign.

So I will see these two attorney's and see if the advice is the same / similar and my husband and I will go from there.

Really bugged me to read the papers from the court because it said "the debtor" did this or didn't do that. My means test was all over the map with inaccuracies and incorrect deductions/exemptions.

Too bad I can't get a "do-over".

[lrprn]

I got a really disconcerting package from the court based on the 2004 hearing that is a motion to dismiss...but I am not sure what that means for me.

Sounds like the court may dismiss this filing. Since it was the very poor representation you received that got you into this mess, I'm not sure when you can refile again. It won't be longer than six months and could be much shorter given the circumstances. The new bk lawyers you will be interviewing can give you an idea about this.

I have set up two consultations with attorney's recommended by the local state bar certified lawyer referral service.

Sounds like the perfect place to start your search for a new (and this time competent!) bk lawyer! Keep us posted about what you find out, ok?

Really bugged me to read the papers from the court because it said "the debtor" did this or didn't do that.

Although it seems odd to us debtors that file with a lawyer, that is how bankruptcy works. We get legal advice to (hopefully) have the filing done correctly, but ultimately when we sign those bankruptcy forms, we are taking personal responsibility for the case filing and its accuracy. Seems harsh since we aren't the ones filling out the forms and filing them, but that's how the game is played. Try not to let this bother you too much.

My means test was all over the map with inaccuracies and incorrect deductions/exemptions.

That's why it's very important to understand bankruptcy yourself and not just assume a lawyer (or a paralegal) knows what they are doing. If they mess up, you end up dealing with the mess. I'm so sorry that you have been forced to find this out the hard way, attila .

I'm betting you will get your "do over" and file a strong and accurate plan this time. Things are going to work out for you in long run. Before you know it, all of this will just be a bad memory!

[attila]

According to one of the attorney's the reach back is 4 years on fraudulent transfers - we are 16 months away from that date now as I transferred my interest in the house to my husband in December 2004. He brought in another guy in the firm to confirm that the statute was 4 years.

The first step is to get the case dismissed now. I have my rescheduled 341 hearing tomorrow.

I sent the USDOJ attorney copies of my cancelled checks to the firm where the paralegal works.

Interesting side note - the attorney we met with on Friday morning knew the paralegal in question and he mentioned that our case was not the first one that he had seen where there were problems. His words were "there is damage out there". He also mentioned that this paralegal and the attorney he works with got into "trouble" a while back - he didn't elaborate on that. After my experiences, I don't doubt it and think he can expect more trouble to be heading his way.

So now it is a matter of deciding the best course of action between: file 13, negotiate the debt with the creditors directly and settle (yes I know there are tax implications here) or waiting until the 16 months have gone by and refile a 7 at that time.

I am just not sure I can deal with 16 more months but it might be worth a shot and see what happens. I know my husband would prefer this route as he does not want to take money out of the house (which is why we hadn't done that already). In 16 months, I will hopefully be graduated from school and be working in a new job for a fraction of what I make now (tho probably not much less than my CURRENT income as I had to cut my hours by 20% to accomodate an unpaid internship).

[attila]

I'm sitting outside the building where the hearing is to be held. Wish me luck...right now I just want this case to be dismissed so I can explore the alternative options we have and then go from there with an attorney like the one we met on Friday.

[lrprn]

I'm sitting outside the building where the hearing is to be held. Wish me luck...right now I just want this case to be dismissed so I can explore the alternative options we have and then go from there with an attorney like the one we met on Friday.

We are all sending positive thoughts your way, attila. Hope you have good news to share after the hearing. I've got everything crossed on my person that can be crossed for you!

[JRScott]

Good Luck attila

[attila]

Not good news to report. The trustee is going to oppose dismissal of the case despite the USDOJ attorney's motion to dismiss and my wish to have it dismissed. She is going to force us to refinance the house to pay the creditors in full.

I don't know how it works so don't know if her objection is enough to prevent a dismissal.

[lrprn]

Not good news to report. The trustee is going to oppose dismissal of the case despite the USDOJ attorney's motion to dismiss and my wish to have it dismissed. She is going to force us to refinance the house to pay the creditors in full. I don't know how it works so don't know if her objection is enough to prevent a dismissal.

I'm so sorry to hear that things didn't go your way today, attila

Frustrating that your local trustee has decided to go against the DOJ attorney's dismissal recommendation. Local trustees report to the DOJ's US Trustee - this is kind of like telling your boss that you disagree with something he/she's told you is the best way to do something. I wish you had drawn a more understanding trustee.

Please come vent here any time as your case moves forward. We'll help any way we can, even if it's just to listen when you need it most.

[JRScott]

Sorry to hear . Come by and let us know how things are working out. Is this a Chapter 13 your being put into? Or just taking out equity to pay the creditors?

[JollyGG]

I'm sitting outside the building where the hearing is to be held. Wish me luck...right now I just want this case to be dismissed so I can explore the alternative options we have and then go from there with an attorney like the one we met on Friday.

Not good news to report. The trustee is going to oppose dismissal of the case despite the USDOJ attorney's motion to dismiss and my wish to have it dismissed. She is going to force us to refinance the house to pay the creditors in full.

I don't know how it works so don't know if her objection is enough to prevent a dismissal.

If I remember right you already fired your original representaion. You can still hire this new attorney to represent you as you go through the current issues with your bankruptcy. It sounds like you really need a good lawyer right now to help you get through all of this.

[attila]

I spoke to the attorney and discussed retaining his services. It will cost me $1000 and go from there. He will work to try and join with the USDOJ to get my case dismissed. He also told me he would draft a letter to my former attorney with a demand that I be refunded all fees paid as I got nothing for my money. As a BK attorney he should have been aware of the reach back statute for one and with that in mind should NEVER have filed under chapt. 7

The hope now is the judge will dismiss the case over the objection of the trustee. Then I can use this attorney to negotiate with my creditors and hopefully pay less than the full amount.

I have an appt with him on Monday morning.

[JRScott]

Let us know how the meeting goes.

I hope you can get him on your side. Look at it this way if he gets your money back from the other attorney you can use it to pay him or reimburse yourself

[attila]

Meeting went well yesterday. I signed the official forms today to substitute this new attorney for the other one officially. The hearing to dismiss the case is Sept 12 and they will be there (I don't have to go). He thinks I have a shot at getting the case dismissed as my representation was less than adequate (to say the least!!!). He also said he knew my trustee (not sure if that means he can talk some sense into her or not) and that the judge for my case is a "debtors" judge.

Once we get the hearing done, then I guess I will know where to turn from there.

[lrprn]

Meeting went well yesterday. ... Once we get the hearing done, then I guess I will know where to turn from there.

We are all rooting for you, Attila! Your first "lawyer" and his paralegal who gave you such incredibly bad legal advice really did put you through the wringer. Glad you are getting things back on track. Keep us posted about your progress, and if you hear anything about what the DOJ is going to do to your terrible first set of "legal helpers", please let us know that as well. Best of luck - you sure do deserve some good news for a change!

[attila]

My new attny will contact the U.S. Trustee on Monday to confirm that the case will be dismissed. If, for some reason, it is not dismissed, then he says we will look to previous attny for redress. (I assume this means suing him?)

Here's the gist of what my new lawyer said to say in a letter to previous attny regarding the fees I paid:

"When I met with you to discuss the filing of my bankruptcy I specifically asked whether there would be any problems and you assured me, from your past experience there would be no problems. We discussed the transfer of my residence to my husband a little more than a year prior to the filing and you assured me that because it was transferred more than one year prior to the filing of the bankruptcy there would be no problem.

As it turns out, there is a big problem. I have learned that the transfer was considered fraudulent under California law and that the statute of limitations for actions involving fraudulent transfers is four years. Had I known this, and I believe you should have known this, I would not have filed bankruptcy.

The U.S. Trustee has moved to dismiss my case. The Chapter 7 trustee is opposing the dismissal. She wants to sell my home and pay all creditors. That would be disastrous.

I would not be in this position but for the faulty advice and inadequate representation you provided. Therefore, by this letter I am demanding a return of my entire retainer and filing fee. If my case is dismissed we can both breathe easier. If not, you'll be hearing from me."

So I have prepared the letter to send to the previous attny.