Legal Question in Bankruptcy in New York

Dismissal of Chapter 13 Bankruptcy

My husband and I filed a Chapter 13 in June of 2007. We have made our payments to the trustee on time each month. In JUne of this year we recived an objection notice to outr confirmation from the trustee. They needed 3 of my husbands paystubs and my attorney's calculation of CMI. Subsequently, we recieved a Sua Sponte Conditional Order of Dismissal and a court date of August 28th. I called our attorney and faxed both her and the trustee the missing paystubs. Our attorney told us that based on those 3 paystubs the trustee was rejecting our plan. She told us that she would recalculate things and it would be fine. Then today, 9/2/08, we received an order from the court dismissing our case on 8/29/08. What does this mean for our debts owed and our home? What are our options? We had 2 judgements filed before the bankruptcy but they were included in the bankruptcy. We make our mortgage payments each month. If judgements are filed on our home will it force us into foreclosure? PLEASE HELP!!!


Asked on 9/02/08, 8:31 pm

1 Answer from Attorneys
Stephen Starr Starr & Starr, PLLC

Re: Dismissal of Chapter 13 Bankruptcy

Dismissal of a chapter 13 case means that you no longer have the protection of the automatic stay in bankruptcy.

You should confer with the attorney who represented you in your chapter 13 case for answers to your questions. If he/she is not forthcoming then you should another competent bankruptcy attorney and have him/her pull the proceedings docket and review the papers in your prior chapter 13 case and figure out what happened and why and advise you about your next steps. That review is going to be beyond the scope of a free initial consultation for most attorneys who are experienced in this area, since it should take a minimum of at least an hour or more (particularly if the attorney provides you with a written letter/memorandum detailing what went wrong and your next steps).

As a result of changes to the bankruptcy laws in 2005, filing a second case becomes subject to particular rules and deadlines that makes it harder than filing a bankruptcy where there is no prior dismissal. You should consult with a competent bankruptcy attorney for further information.

The review of the prior chapter 13 case and analysis of reasons for dismissal and options going forward is beyond the scope of a free initial consultation at my firm, but is a service we provide at our normal hourly rates. Please feel free to contact me if you would like to schedule an appointment. Please note that representation of a client in a chapter 13 case, however, is something that we handle on a flat fee basis.

For additional information about bankruptcy and chapter 13 please feel free to visit the Frequently Asked Questions (FAQs) and Blog posting on our website at www.starrandstarr.com

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Answered on 9/03/08, 10:05 am


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