help if you can please...case thrown out

[disenchanted]

Bankruptcy petition was filed in November of 2009. Everything was going smoothly and then spouse was hospitalized and unable to attend the creditor's meeting and the case was thrown out because spouse couldn't attend due to hospitalization. Case was thrown out because of missed creditor's meeting. Attorney wants more money to refile. Is there another option other than having to come up with another $2000 to refile?

TIA

[NoTomatoCan]

Did you let your attorney know prior to the 341 that your husband was hospitalized and not able to attend? Did your attorney let the court and trustee know of the situation?

That seems unusual for the case to be flat out dismissed!

We actually had our 341 rescheduled due to our attorney being on vacation! (He did give the court notice days after the 341 date was initially set, but still...)

Also, I thought you got 10 or 14 days after recommendaion for dismissal at the 341 to object. (Hospitalization seems like a valid reason).

Is there something more to this?

[disenchanted]

It isn't my spouse, it's my best friend and their spouse that filed and had this happen to them. I thought that it was unusual that it was just thrown out and I am only relaying what I was told. I was just trying to help to see if they have any options other than having to shell out more money to refile. I probably should mind my own business, but it's my best friend and I am only trying to help.

Thanks for responding.

[NoTomatoCan]

It isn't my spouse, it's my best friend and their spouse that filed and had this happen to them. I thought that it was unusual that it was just thrown out and I am only relaying what I was told. I was just trying to help to see if they have any options other than having to shell out more money to refile. I probably should mind my own business, but it's my best friend and I am only trying to help.

Thanks for responding.

Then there has to be something your friend is leaving out. While missing your meeting of creditors (341 meeting) is a really big deal, and by itself would get your case dismissed, your friend's attorney would have simply had to ask for it to be rescheduled - either by letting the trustee know in advance to get it rescheduled, showing up to the 341 when it was scheduled to get it adjourned or by responding to the subsequent motion to dismiss.

If the case is truly dismissed at this point, then they probably do have to refile. Although it is common for attorney fees to be included in the CH13 plan.

There is probably a lot more info your friend didn't fill you in on...

[disenchanted]

Thanks again for your response and help. It sounds like there is something that they didn't fill me in on. Like I said, I should probably just mind my own business. But it's my nature to try to help.

[SMinGA]

My best guess - knowing very little about the situation - is that there were major lapses in communication and/or things were not handled in a timely manner.

If the case was filed 11/09, the creditors meeting would have been scheduled for 12/09 or 1/10. If the first one was missed, it would have been normal (maybe automatic?) for another to be rescheduled 1 month later. Since you're now asking on your friend's behalf ~6 months later, I'm guessing warning notices were sent and ignored.

I believe a dismissed case can be reopened within 14-15 days, but since this probably all happened months ago - starting over is probably the only option.

Tips for your friends:

Stay in constant contact with the atty! Any changes/updates - or questions - don't hesitate to address them right away!

[woeisme]

My best guess is that they may have let it dismiss so that they could include the costs from the hospitalization into the bankruptcy, (something they would NOT have been able to do if they simply rescheduled since it would be post-petition debt) but now are bummed that they have to repay the lawyer fees again. While it's your nature to be helpful, it's human nature to want to have your cake and eat it too... and to complain when the dessert bill comes. So while it's really nice of you to try to help them out, they may not be telling you about the ways the dismissal benefited them, just telling you the "woe is me" part of the story (something I have a tendency to do myself, if you can tell from my username!) But the lawyer is going to have to re-do all the paperwork because their financial situation has changed from the initial filing, and probably the CH 13 had some of the lawyer fee put into the plan that was never paid, so I can't imagine a scenario where they will be able to refile without having to pay more. Anyhow, continue to be a sounding board for these friends, and offer a shoulder to cry on, but it's really hard to help someone else out with their finances because very few people are 100% candid about their entire financial picture. You sound like a good friend tho!