Trustee's motion for dismissal (after conf)

[Abrigo]

Hi all, new to the board. I am hoping someone has some insight, as I have yet to hear from my lawyer on this:

Our Ch. 13 Plan was confirmed in March 09. Today I got a notice from the trustee filing for a dismissal under the following grounds: "failure to finalize objection to claim #10 of County Tax Collector."

First, how could the plan have been confirmed with an open objection? Isn't that the whole point of getting confirmed?

We had no notice of any objection from the County Tax Collector. We previously had worked through an objection from our Auto loan, but nothing on old property taxes.

Are property taxes exempt from a 13 in California?

Any info you experts have would be greatly appreciated. All of you know what a trying experience this can be. My wife and I were quite happy to make our monthly payments and finish our plan in peace. But now...


Help!

[justbroke]

Our Ch. 13 Plan was confirmed in March 09. Today I got a notice from the trustee filing for a dismissal under the following grounds: "failure to finalize objection to claim #10 of County Tax Collector."

First, how could the plan have been confirmed with an open objection? Isn't that the whole point of getting confirmed?

At least in Florida, we don't confirm plans with any objections. The Order of Confirmation actually closes "all open issues".

We had no notice of any objection from the County Tax Collector. We previously had worked through an objection from our Auto loan, but nothing on old property taxes.

Your lawyer may not have been checking the Claims Register. Claims can come in at any time for secured debt.

Are property taxes exempt from a 13 in California?

Exempt from what?

All you need to do is immediately cure the problem with the Objection. The County Tax Collector probably objected to their treatment of their secured claim in your Plan. You should get on top of this and get this done so that they are included in the Plan.

[Abrigo]

At least in Florida, we don't confirm plans with any objections. The Order of Confirmation actually closes "all open issues".

Your lawyer may not have been checking the Claims Register. Claims can come in at any time for secured debt.

Exempt from what?

All you need to do is immediately cure the problem with the Objection. The County Tax Collector probably objected to their treatment of their secured claim in your Plan. You should get on top of this and get this done so that they are included in the Plan.

Thanks for the feedback. But I am fairly certain that they WERE included in the plan, which makes their objection well after the fact surprising.

[justbroke]

Thanks for the feedback. But I am fairly certain that they WERE included in the plan, which makes their objection well after the fact surprising.

Well, a secured creditor should object before confirmation or within a reasonable time. However, this could have just been overlooked.

[HHM]

Keep in mind, governmental units have an extended timeline to file their objections and proof of claims. That is probably why you were able to get confirmed, but still get an objection. Just work it out and amend your plan.

[CH33 Paralegal]

The dealine for creditors to file claims extends beyond the confirmation hearing. If nothing is done about that tax claim, then it's not being treated in the case. You either need to object or you need to build it into your plan. If your plan doesn't allow for the treatment of that debt, then the plan can be rendered infeasible because it doesn't address everything going on.