chapter 13 being dimissed with prejudice

[papa0881]

I got my letter today. My pay plan is $1065 I have not been able to make a payment for 5 months now. I just started to be able to make the payments again however I need to get $5005 within a month my lawyer said.

Our business has not been doing good at all these past few months obviously.

My lawyer said they will first have a court hearing within a month, it shall be pretty fast he said so get the money directly. Does anyone know what will happen if this happens? I have a good try at getting the money but I am not 100% sure if I will be able to or not.

I imagine that if case is dismissed then I will loose all my assets. I have tons of assets. Mostly all the debt is in my name that is on the plan. Maybe $5k is in the business name. The business is INC. It is a landscaping business.

My ? is has anyone ever had this done to them before? I mean I cannot help that I have had a hard time paying my bills these past few months..... Its the way life is, just like the quote on this sit,e life has its ups and downs. But this one really has me just libbid. I just wish I could die to be honest. I have a wonderful wife and great 11 mo old and just cannot take this pressure of this BK anymore.

I was in a bad car accident in 2004, ever since then I have not been doing so good. In 2005 I had my first surgery on my leg, 2nd surgery in 2006 and having another one feb 1 this year. Life has not been great to me these past 4 years. Tons of problems as you can see. I lost my partner in 2006 also, this hurt my business badly.

Our business has around I would say 750k in assets. I cannot loose my business as it is ALL I got. (other then wife and child of course) if I would loose my business I need to be dead. Just cannot take the stress anymore with the BK.

I am lost here now, talking every which way. I just want to know if anyone has had the same problem as me. I have no idea what to do anymore.

So my lawyer said if I cannot get the funds then I possibly could go to a ch 7... is this true? I want to keep the assets, they are all under the business name. But can you include personal debt AND business debt under ch 7? I would NOT put the INC on just myself and the dba business, not the INC.
He said cost would be $1000 plus $299 for filing fee. It would be cheaper to do this seeing I already owe $5325
I just started sending them $330 a week as I agreed to the ch 13 office. So this $5325 would be greatly less when I went ahead and go to the court hearing.

I surely hope they do not ask for $1065 more if hearing is in feb. I could not do $6,000 in a month in the winter. that is very rough.

[papa0881]

also my lawyer said I could go to a ch7, but will this Liquaidate all my aseets in the INC. He replied it possibly could. Will this happen?

[HHM]

1. If your chapter 13 is dismissed, you WILL not lose your assets (at least not immediately). A dismissed BK puts you back at square one with your creditors. Thus, your creditors would have to sue you, etc. to get at your assets.

Being dismissed "with prejudice" is not a good thing, because that means you CANNOT refile a chapter 13, at least not for a while. I am not sure how long, but it would be longer than the usual 6 month refiling period.

You can file Chapter 7 individually and not include the business. What happens is, you discharge any "personal" liablility for business debts, but the company is still liable for business debt. Whether you qualify for a chapter 7 is a different issue. I think this lawyer is kidding himself (and you) if he thinks the chapter 7 will ONLY cost $1000 plus filing fee. IF the debt is significant (which, if I recall from you other posts, it is), I would expect some creditors to fight for one reason or the other.

[papa0881]

I just need to find a way to get the $5000 and I will be fine it sounds like correct?

The debt is around $125k? I think not very sure.

[papa0881]

Well I figured out how we could get $2500. Wifes income tax check and $1000 child credit, thats a good thing. However I may get a refund check? I have had IRS owings in the past, will I or wont I get a refund? IRS owings are on the ch 13 plan.

[woeisme]

If business has so many assets, are there any at all that you might be able to liquidate to pay the trustee? Just a thought, not sure if you can sell them or not if they are part of the CH 13 tho...

[papa0881]

no we cannot sell anything while in ch 13. but i was reading the letter, it is an order from the court, not signed it is stating what will happen it sounds like....

it looks like a form that everyone would get when they are in my place, do they always make you go to court for this or will i not even have a court hearing for dismissal?

[rrockinggramma]

I was dismissed 2 times for non payment. Both times, I refiled right away. However that was old law and the new law makes the auto stay difficult to get when you refile. Anyways, in our case, we got the same letter and we were given 30 days to pay up to keep the case going. If you pay within the time frame listed in your letter, then you would still go to the hearing but your case would not be dismissed. You would probably be put on probation.

[papa0881]

im in WDPA PENN district.

so in order for them to actually dismiss my case i have to go to court, correct? As long as i have to go to court I will be fine. Hopefully i get the tax refund here soon i wont even have to go to court then, can pay it right away.

so my next ? is i have to go to court in order to have the case dismissed right? again i am in the western district of pa WDPA

[rrockinggramma]

No, if the money isn't in the trustee's hands prior to the hearing date, you can be dismissed with NO hearing. However, when we were dimissed for non payment it was without prejudice which meant we could refile right away. Did your letter state "with prejudice"

[HHM]

im in WDPA PENN district.

so in order for them to actually dismiss my case i have to go to court, correct? As long as i have to go to court I will be fine. Hopefully i get the tax refund here soon i wont even have to go to court then, can pay it right away.

so my next ? is i have to go to court in order to have the case dismissed right? again i am in the western district of pa WDPA

If dismissal is inevitable, (i.e. that you are not going to be able to make up the missed payments), you don't actually have to attend the hearing, because your case will be dismissed whether you are present or not. However, if I were you, I would probably go the hearing to address the "with prejudice" issue. You won't be able to stop the dismissal, but a judge may listen to an explanation and decide to dismiss the case without prejudice. Generally, judges will not dismiss a case with prejudice on your first go around.

[papa0881]

If dismissal is inevitable, (i.e. that you are not going to be able to make up the missed payments), you don't actually have to attend the hearing, because your case will be dismissed whether you are present or not. However, if I were you, I would probably go the hearing to address the "with prejudice" issue. You won't be able to stop the dismissal, but a judge may listen to an explanation and decide to dismiss the case without prejudice. Generally, judges will not dismiss a case with prejudice on your first go around.

HHM What do you mean that they the judge will not dimiss a case with prejudice on your first go around?

Met with lawyer today, the letter says that the trustee requests the case be dismissed without prejudice, attorney said that is a great thing because if the judge wants to be an a hole then he will dismiss and i can re file right away.

[HHM]

HHM What do you mean that they the judge will not dimiss a case with prejudice on your first go around?

Met with lawyer today, the letter says that the trustee requests the case be dismissed without prejudice, attorney said that is a great thing because if the judge wants to be an a hole then he will dismiss and i can re file right away.

FFS, which is it, in your first post, you mentioned it was to dismissed with prejudice, now it is not.

[papa0881]

yes lawyer said it was with, but its not its without preducie,so what does that mena? i can re file if it is dimissed. bk is confusing. well just pay and u be ok

[rrockinggramma]

without is great. You can refile right away. Hopefully your new budget will be better for you to live with.