can I get a chpt 7 dismissed???

[tbullinger]

I have called 8 lawyers and none will return my calls on this question, not even the one that messed everything up. Anyway, we filed chpt 7 in WY last month, had our creditors meeting on April 12th, (our lawyer did not even come). The trustee said that we will have to pay for our already paid for truck because it is only in my name not my husband's, so he does not get any of the excemption. But worse is that he said he is going to force my sister to sell some land we sold her back last June to try to make up some payments. He said we sold it too cheaply and he will make her sell it to pay our debts. I can not let that happen. I want to know if there is any way to cancel or forfit our bankruptcy petition?

[HHM]

I personally cannot speak to the exemption issue on the Truck because that would be a matter of State law, as for the LAND.

As for your sister, first, you need to realize the trustee will need to sue your Sister first and she will have an opportunity to defend the case if she so desires and she has several statutory defenses she can claim; the trustee cannot automactically force her to give back the land, he needs an order from the Bankruptcy court.

As far as getting your case dismissed, you can make a motion to dismiss your chapter 7, but you generally have to show cause.

The other option available to you is to convert you case to a Chapter 13.

[tbullinger]

I really don't want my sister to have to go to court over my mistake (listening to my lawyer, when he told me to sell the land for half of what I paid several years ago). If we convert to a chpter 13 the bankruptcy court controls mine and my husband's money for 5 yrs right? Also, the trustee wanted a copy of the land's current tax assessed value within 10 days. The day of our meeting, when I called my lawyer to ask about all the problems that came up and see what to do next, he said to stall for about 60 days then to convert to a 13 and not show up for the creditors meeting. That seems like it might just make the court mad. What do you think? I have called all the other lawyers in the area about it and none will take a case started by another lawyer. Looks like I am either on my own or pay this guy another $300 to $500 that he said it would cost to convert to 13.

[HHM]

Well, what is the land actually worth, Did you really sell it for below market value? If so, you are kinda screwed...about the only thing you can do is convert to a 13 or beg for mercy from the court to dismiss your chapter 7.

Also, a chapter 13 is not a bad option...when you consider your alternative (which you don't really have).

If your lawyer told you to sell it for half its market value in contemplation of BK, that is probably borderline malpractice.

[tbullinger]

Can you tell me any of these statutory defenses, you mentioned in your prior post?

[HHM]

The main defense is that your sister would have to have paid a reasonable and fair sum for the land (the statutory language is "Reasonably Equavilent Value"). However, it doesn't sound like that happened here, so your probably SOL.