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Roger, Attorney
Category: Bankruptcy Law
Satisfied Customers: 31687
Experience:  BV Rated by Martindale-Hubbell; SuperLawyer rating by Thompson-Reuters
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I need advice on how to handle a chapter 13 thatsbeing dimiss

Resolved Question:

I need advice on how to handle a chapter 13 that'sbeing dimiss oppose to being discharged. The trusteestate that I'm delinquent now that my five years is about to end Jan 12,2012 which is the first that I heard of it. I made all my monthly payments, the attorney I ad never inform of this problem, as well as he never seem to have informed the trustee that I had retired two years ago. Now he tells e to paid an additional amount of fees in order for him to file a chapter 7 for me. Any advice you can give will be greatly appreciate. My bankruptcy filing is in the state of Michigan
Submitted: 5 years ago.
Category: Bankruptcy Law
Expert:  Roger replied 5 years ago.

Hi - my name is XXXXX XXXXX I'm a Bankruptcy litigation attorney here to assist you.


Being dismissed means that your bankruptcy is thrown out and you are not entitled to any protection under the Bankruptcy Code and all creditors can come after you as if the bankruptcy never happened. You would, however, receive credit for any money you paid to the creditors through the plan that reduced the debts. It is likely that you haven't paid trustee's fees, which is generally 10% of all money that passes through the estate. If you don't pay the trustee his/her due, it can be grounds for dismissal.


Being discharged means that you have completed the bankruptcy plan, paid all fees, obligations, etc. In that case, your case is over and you're protected from the creditors who have been paid off through the bankruptcy.


Obviously, there's a huge difference in being dismissed as opposed to being discharged.


If you were to convert to a chapter 7, which is a complete liquidation, you'd likely lose all of the property that you've been paying on and trying to save for the past 5 years - other than things you can generally reaffirm like your house and vehicle.


You're better off to try and work something out to pay the trustee his fees and complete the bankruptcy.

Also, another expert has offered that you also file a plan modification to excuse any missed payments.
Customer: replied 5 years ago.
is it wise for me to contact the trustee on my own and try to make the arrangement? M attorney don't seem to have the time and feel that filing a chapter 13 is the best and quickest way out, I perfer to have a discharge.
Expert:  Roger replied 5 years ago.
The trustee likely will not communicate with you since you're represented by a lawyer. You're going to have to go through your lawyer to try and work out an agreement or to file for a plan modification.
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