Dear Just Answer:
Below is my bankruptcy Chapter 13 settlement agreement:
Whereas, Plaintiff brought the above captioned adversary proceeding against Defendant, and
Whereas, Defendant has denied the allegations of Plaintiff, and Whereas, Plaintiff and Defendant have agreed to settle their disputes upon the following terms and conditions:
1. Defendant agrees to pay the sum of Nine Thousand Five Hundred and 00/100 Dollars ($9,500.00) to Plaintiff, payable upon the approval of the Motion to Compromise by the United States Bankruptcy Court for the Eastern District of North Carolina. Said amount is being held in trust by an escrow agent, and will be paid to Plaintiff upon the Court’s approval of this Motion. If the Plaintiff does not receive the entire sum of $9,500.00 within seven (7) days for any reason, then Defendant has an additional seven (7) days to cure. If not, then this settlement agreement is NULL and VOID.
2. Plaintiff agrees that the Court’s approval of the Motion to Compromise will dismiss this action with prejudice.
3. The Plaintiff, Defendant, Defendant’s counsel acknowledge that they have read and fully understand this settlement agreement. Wherefore the parties and Defendant’s Counsel have placed their hands to this SETTLEMENT AGREEMENT.
Below is the Motion:
MOTION FOR APPROVAL OF COMPROMISE OF CLAIM AND DISMISSAL WITH PREJUDICE
Now comes the Defendant in the above-captioned cause and motions the Court for approval of compromise of claim in the cause and in support thereof alleges the following:
1. Plaintiff brought this action against Defendant contesting dischargeability.
2. Defendant has denied the allegations of the Plaintiff;
3. As a complete settlement of all claims the parties have agreed to the following:
a. Defendant hereby agrees to pay the sum of nine thousand five hundred and 00/100 dollars ($9,500.00) to the Plaintiff upon the Court’s approval of this Motion. The Defendant obtained said sum from family members, and, as such, the payment will not affect her ability to meet the terms of her Chapter 13 Plan.
b. Plaintiff agrees to dismiss this action with prejudice.
3. Defendant believes the settlement to be in the best interests of the estate. Wherefore, Defendant motions the Court for approval of the proposed compromise and dismissal of the adversary proceeding with prejudice as set out above.
My question is Why is the other lawyer not incorporating my settlement agreement to the motion, but write a little differently? Will my settlement agreement carry any weight at all in court vs the motion if the defendant do not pay me? If the judge is to issue an order to approve the settlement and I did not get paid, the case will be dismissed with prejudice and I do not have any saying in the case at all? Can I even reopen the case at all? I forgot another thing, if the settlement amount is held in trust for me pending approval of the court, do I need to worry about the motion at all?
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