Pennsylvania - long chapter 13 nightmare - advice please

In April 2005 we met with an attorney from a large firm regarding filing bankruptcy. After asking all the normal financial information he tentatively told us that we would need to file chapter 13 as I am half owner of our house with my mother. The house value is 75000 and we are in PA. He estimated that our monthly payments would be around $1000-1200 per month.

We decided to file and we were sent paperwork from the attorny to fill out and sign. It asked for financials and copies of necessarity items. We sent back our paperwork with the information. Unfortunately our orginal attorney left and we were now dealing with a new attorney. I only ever spoke with the 1-800 clerks that answered our questions. We did not get a copies back of our filing but was assured that it went through on the day before the new bankruptcy law went into effect.

Next we received a packet from the trustee and a 341 meeting notice for Dec of 2005. The trustee paperwork said we needed to make a payment prior to meeting. As we had not gotten anything yet I contacted my lawfirm - again talking to the 1-800 people and requested a copy. I was stunned when I received it early December and our payment was listed as $2000. I immediately called the office and explained that we don't have that much disposible income and the 1-800 person made me feel like an idiot.

I examined the paperwork and noticed a few things. -- All the deductions from my husbands paycheck for health care/dental/insurance/parking were not listed. This amounted to 600.00. I also noticed that they listed a second job that we notified them my husband had recently quit - another 280.00. Some of other budget items we listed were also taken way down. Open even further inspection I realize they were only listing us with one daughter (17 years old) though we have two (15 years old).

I immediately contacted the attorneys office and explained the situation and was told that these items would not be a problem to adjust and to bring my paperwork backup to the 341 meeting. We did this but of course found out the 341 was not for adjustment times. We explained to the trustee that items were left off and she told the attorney to get the amendments filed right away. The 341 was over.

I immediately re sent the items to the attorneys office. About a month later they filed the amendment (Jan 2006) but as yet it has not been ruled on.

I told my attorney and the trustee's office that we could not continue to pay the 2023 amount. The attorney said to pay as much as we could and the truestees office only said I needed to deal with my attorney on these matters.

Fast forward to July. I have been paying what we were able -- around $1000 per month and just today got a dismissal from the trustees office.

I had through the months tried contacting my attorneys office to find out status, but in the mean time another attorney has taken the case and no one called me back. I should have never let this go so long.

I called the office today about the dismissal and got another "clerk" who said she would have the new attorney contact me on Monday. She said that normally to reinstate the plan I would need to come up with half the back amount due $8000 and that they would probably rework my plan to 60 months. When asked why my ammendment was not handled, she wasn't sure but told me that I have to stay with the original agreement.

What a nightmare. I am so confused and scared. I am considering contacting a new attorney to see if I can get this mess straightened out. I just wonder what happens next?

You have a clear case of attorney malpractice / neglect. I would probably seek representation from a new attorney if your discussion on Monday doesn't go to your satisifcation.

Make sure you document all your phone conversations with dates / times if you can remember them with people you talked with in your attorneys office.

Also, how could they submit a plan without your signature? Your attorney is suppose to have you review all the documents / plan before filing your case. Sounds like they skipped a step.

I would probably throw the malpractice word / incompetent counsel to the attorney you talk to Monday and let them know if they don't get it fixed and fixed fast you'll be making a complaint to the bar, and the bk judge.

I think it can all be fixed, but it will be a pain in the a$$ for you I'm sure.

As far as signatures you can call me really stupid on this one. The initial forms sent were the legal forms but blank/partially filled out from our initial consultation with sticky notes requesting we send the information and correct any errors with sticky arrows pointing where to sign.

They then used these signatures instead of having us come in and sign new ones with the corrected information. I even setup a time to go back in and sign the forms but they called me the day before and said we didn't have to come in. (It was the week of the old law deadline so I imaged it was a really hectic time). Also, as I really didn't want to take a day off from work to drive in town to sign again, I was relieved not to have to resign. STupid, Stupid, Stupid.

Even worse was when the we were at the 341 and we were asked if we signed the forms. I should have said we signed forms, but not "those" forms. I was still under the mistaken impression that everything would be cleared up with the amendment. Stupid, Stupid, Stupid.

I could just cry.

Also is it normal for the trustee's office to sit on the amendments since January? I was told initially it would take around 30 days.

Dear soccermom,

I am so so sorry for you, what a jerk for a lawyer you have, much worst than my good for nothing attorney that almost got my case dismissed thrice.

Your case has gotten way out of hand; I am not sure what to tell you

Did you ever receive a motion to dismiss letter from the trustee?

Have you been checking your case on pacer?

I think your last change will be to petition the court to re-open your case; you will need some good explanations for this and a competent lawyer on your side to succeed.

I also was so naïve and un-educated about bankruptcy back when I filed in 2001, I trusted my lawyer completely and learned the hard way that is a bad idea. I remember signing my bankruptcy forms (blank) my lawyer assistant said she would complete them later! Man! I didn’t know anything back than. At the last minute before my case was to be dismissed she filed a one day extension, than filed incomplete forms again.

I hoping you can pull all this together and get your plan confirmed under the old law,

Best wishes,
bkbiker

I received the motion to dismiss from the trustee today. I can't even image what we are going to do. WE cannot image what we will do if we lose the house as we share it with my mom. I feel so terrible.

I did learn about pacer from this forum and have checked it quite a few times over the months, but it doesn't really list much information other than the filed amendent in January, two notices to change attorneys (one in Feb and one in Apr) and now the dismissal. There was never any listing of the amounts my creditors filed or any real detail.

So how do you find a new attorney that you can trust? I liked the very first attorney we met at this firm, but he only lasted a month. The others have barely talked to me.

Ok than, your case is not yet dismissed, not as bad as I thought,

So you received the motion to dismiss for failure to make plan payments and have 20 days to respond? You will have to respond with-in that time period so your case is not automatically dismissed. Than you should have up to 6 weeks before a hearing date is set.

Call your lawyer first thing Monday and see what he says; be assertive and polite, urgently make an appointment as soon as possible, make a list of question to ask before you get there. Note, your first lawyer is required by the bankruptcy code to represent you for your entire case, from beginning to the very end.

Call another lawyer and make an appointment to come in for a consultation, so if you need another lawyer you have one ready.

Start writing your own brief, so when you meet your lawyers; you have already put down in writing what the facts are; obtain any paper work to prove this. Also write a clear, easy to read, and short statement about your case to date; this will save time when you meet your lawyers.

Good luck,
bkbiker

BKBiker gave you some good advice. BK has been thru a very similar situation and knows what he/she is talking about.

Since your "original" petition was filed under Old Law, if you can dodge the dismissal, your Ch 13 will remain under Old Law rules. In your case, that may be VERY important for you to maintain.

From what you've said, you're currently scheduled to pay-out in less than 5 years?? Sounds like under New Law, you might be an automatic 5 year plan candidate. So you really need to get this dismissal issue handled to prevent having to refile under New Law.

In addition to BKBiker's suggestions, I'd also suggest you print out your PACER filing info. Then you have concrete proof that the Trustee received the Ammendment request in January and the Trustee has not yet, to date, acted on that. You also have proof of TWO changes in representation that you were totally unaware of.

I can understand why the Law Firm turned over your case to another one of their attnys when your original attny left the firm. But to never have notified you of the fact during an open BK is unacceptable. Just my humble opinion speaking there.

There are several threads on the Forum with excellent suggestions of what to look for in another attny.

One thing you definitely want to look for is an attny that's willing to give you their time. Answer your questions. Both during the Consult, and in follow-up calls. If you have trouble recontacting an attny or his assistant, like you're having now, or they do not call back like they say they will, then you need to move on. Our attny, or his paralegal assistant, have responded to every phone call and/or email we've sent.

Thanks for all the great advice. I am feeling a bit more calm now.

I am pulling together all my paperwork and past notes and will be ready when the attorney contacts me on Monday. The docket report on pacer is going to be a big help.

At our 341 meeting in December we told the trustee that the initial paperwork was missing items and she gave our attorney 30 days to file an amended schedule. This was also noted in the confirming paperwork that the schedule was being amended.

We also did know about the counsel changes only because the Court copied us on the hearing notices - not the law firm. In fact I think the first motion to withdraw our counsel was dismissed by the court for non-compliance stating a "failure to SERVE the Hearing Notice Form".

Just a note, your house is safe in chapter 13; the trustee can not force a sale on you,
And your unsecured creditors also can not force a sale on you either; at most your unsecured creditors could obtain a judgment against you and file a lent on the house, so in the future when the house was sold your creditor would get paid out of your half only, so in effect you could actually live your entire life in your house and than your estate would settle.

I am assuming that your house payments are made outside of the bankruptcy plan

On your motion to dismiss, you and your lawyer will need to file an objection to this motion and explain why, file an amended plan, and other paperwork as needed.

I can sympathize with you, when I received my last motion to dismiss I was terrified that my good for nothing attorney would let my case get dismissed. When I meet with him he stated talking about conversion to 7 !!!!!!!!!!!!!!! than said let them dismiss you!!!!!!!!!!!!!!!! Than you don’t have to pay. Mind you now, I was in like the month 54 of my plan and the end was in sight, if my case was dismissed I would have no choice but to file chapter 7 as my unsecured debts plus interest would now be half way to 7 figures.

I hired another attorney, which as been such a relief, he takes my calls personally, his associates answers my emails promptly, he has filed all the correct motions and forms.
This has been costly but for me it was worth it. I mailed my first attorney a brutally honest letter which must of hint on some good nerves because he replied the vary same day. I am still thinking of suing him once this is all over with, than on the other hand maybe just forget it and get on with my life.

Well, I am off to the beach for a vacation, be back in a week or so; there is so much good information on this site along with caring people, wishing you much success,

bkbiker