Lawsuit Dismissal

[kascls]

A lawuit filed against us ($120K) really forced us to decide chapter 13 was our best option. We filed about 1.5 years ago. The company that filed the lawsuit against us also filed a claim and is the largest debtor by far on our plan. We are currently on about a 30% plan.

We just received a letter from the court where the lawsuit was filed with a motion to dismiss the lawsuit. There is a 30 day period for them to respond before the case is dismissed.

My question is - what effect, if any, will that have on our payment plan? Without an active lawsuit will their claim be removed from our plan? Will we simply be paying back at nearly 100%. Any chance our payment will go down (I know, doubtful).

[rrockinggramma]

I doubt it will have any effect. Probably the reason why the lawsuit is being dismissed is because of your chapter 13. It cannot be pursued while you are in BK. Check with your attorney.

[Flamingo]

While in a Chapter 13 and you receive any correspondence or documentation from anyone or anywhere relating to your matter, especially something as of your nature, immediately get a copy to your attorney for review. The Dismissal is just a formality for the lawsuit itself and has no bearing on what you are ordered to pay via your Plan and will not change it.