Motion to Dismiss question

[Phoebe]

Hi all.

My trustee submitted a motion to dismiss my ch13 with a court date of 6/14 due to my being behind on payments. I know everyone will want to warn me not to, but I've decided to let this dismiss after a lot of thought and research.

I told my lawyer that my intention was to simply let this dismiss and not pay. He emails me today and says he needs $150 to prepare a motion to dismiss the case for 6/14.

Huh? Aren't I already getting dismissed by the trustee? Is my lawyer trying to screw me?

Thanks.

[Jman30]

Hi all.

My trustee submitted a motion to dismiss my ch13 with a court date of 6/14 due to my being behind on payments. I know everyone will want to warn me not to, but I've decided to let this dismiss after a lot of thought and research.

I told my lawyer that my intention was to simply let this dismiss and not pay. He emails me today and says he needs $150 to prepare a motion to dismiss the case for 6/14.

Huh? Aren't I already getting dismissed by the trustee? Is my lawyer trying to screw me?

Thanks.

What do you mean your intention is to simply dismiss the Chapter 13 and not pay? You mean, not pay the debts???

[Minnymouth]

By getting your Chapter 13 dismissed, you are going to owe the full (100%) amount to the creditors, there will be lawsuits and judgements, and garnishment of wages...... to follow. Hope you are prepared for all of this...

Also your credit report will still that the blow of filing Chapter 13 for the next 7 years.....

Since your case is going to be dismissed anyways, no you do not have to file a motion for dismissal.... your attorney is trying to make an extra buck off you.... cause he knows your case is soon OVER......

Hope you know what you are doing by dropping your case, it can have some pretty bad repercussions..... with no way out for you.

Good LUck,

Minny

[Phoebe]

Hi all:

I appreciate the concerns. I don't mean to be rude but I am educated and have fully researched the implications and what it means to have this dismissed. I fully understand that this is not an advisable route for most people but I basically only had in my chapter 13 the arrearages on my home and condo association, a private student loan (which was paid off by the co signers) and a credit card for which I have already negotiated a settlement in writing. I am selling my condo which has tons of equity and will take care of the balance of the mortgage and arrearages and the condo association fees. Therefore, the dismissal. Why not permission from the trustee to sell and then discharge? Nothing much to discharge and the lawyer wanted to make $700 off of asking my trustee for permission and waiting 30+ days when I have a buyer right now waiting to close.

Like I said I appreciate your concern and I don't at all mean to be dismissive. (no pun intended! :-) ) However, this is the route I intend to take and the intent of posting this question was not to get flamed for my decision but to find out if my lawyer was screwing me with that $150 fee or not. Thanks in advance for your help.

[Phoebe]

Minny, you and I were writing at the same time. Thanks for the response!

[Minnymouth]

Sounds like you have done your research and have the means to come out financially ahead..... and pay the debts also.....

Best of luck to you,

Minny

[bkbiker]

Just a note; Chapter 13 discharge stays 7 years on your credit report, chapter 13 dismissal stays 10 years,

If you have the means, why not just pay off you chapter 13 in full?

Good luck,
bkbiker

[aa06a47]

Sounds like you have done your research and know what's best in your situation. Sounds like your lawyer is trying to get that extra $150 bucks from you. You should reply and ask if there are undistributed funds in the Chapter 13. He should get paid from them.

[Phoebe]

Thanks guys:

BK Biker: Why not pay off in full? 1st need trustee permission to sell home (that's where my $ is all tied up) which lawyer wants to charge me $700 cash up front to "request permission". Then must wait at least 30 days for response. I have a buyer now. No reason to do either and I am essentially already paying off in full.

My lawyer did contact me back and said he misunderstood and thought I wanted to initiate a motion to dismiss NOW as opposed to waiting til 6/14 when it will dismiss automatically. Truthfully I don't believe him but I didn't call BS on him :-)

[anonymuse]

Good luck, Phoebe. Sounds like you'll be already to get back on your feet.

I'm sure you checked into this, but just making sure, how late (or unpaid) does a payment need to be for the case to be considered dismissed since you won't want to actually sign the papers to sell the house until your officially dismissed? (Since, technically, until then, the trustee still "owns" you.)

[bkbiker]

It doesn’t seem like much could happen with the bankruptcy since you are paying 100%

How-ever Anonymuse did have a good point, your house is still property of the bankruptcy estate until your case is dismissed; I have no idea how this would play out if you sold before being dismissed.

I believe you can write the court and ask that your case be dismissed promptly, no one can keep you in chapter 13 if you filed voluntarily.

Good luck,
bkbiker

[aa06a47]

If you sell your property in a Chapter 13, the trustee gets the proceeds, the "exemption" is nulled, and all the money goes to the trustee and creditors. You would get what is left over. It is best to sell after the case is dismissed.