Legal Question in Bankruptcy in California

The immense amount of debt my wife and I accrued due to short-sale of our house (move required for employment), her medical bills, etc created a situation where an attorney recommended filing Chapter 13 Bankruptcy. While in the process of filing, I was laid off due to program cuts and left with only a small monthly military retirement pension and unemployment. My options changed and we had to file under Chapter 7. We attended our hearing with no real issues and our attorney informed us afterwards that we should expect to see a letter within 60-90 days showing all debts cleared. Because of the economy in San Diego, and lack of jobs, I had to relocate shortly after our hearing and move in with my wife's parents in another state until I could find employment. It has been 2 months and still no offers even though I keep applying. I received a letter stating that the US Trustee had filed a "presumed abuse" notice and I immediately contacted my attorney. I was informed that because of the "means test" it was a fairly common and routine procedure and that I should not worry. Now I have received a registered letter from my attorney stating that my case may be dismissed.

What am I supposed to do now? I don't have enough money to fight a prolonged court case and I'm still unemployed with less than $3,000.00 to my name?


Asked on 8/23/11, 9:59 am

2 Answers from Attorneys
Asaph Abrams Law Office of Asaph Abrams

I don't have all the necessary facts--including, but not limited to whether your wife has income--but based on what you provided, your attorney may be able to successfully rebut the "presumption of abuse" and prevent dismissal. It doesn't have to entail a protracted legal battle.

See: http://sandiegobankruptcy.blogspot.com/2010/09/lanning-gear-and-phantom-menace.html

This answer (as well as our Web site/blog) doesn�t address all facts & implications of the question; it�s general info, not legal advice to be relied upon; it creates no attorney-client relationship; it may be pertinent to CA only; it�s independent of other answers. Hire legal counsel before acting or refraining from bankruptcy/legal action.

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Answered on 8/23/11, 10:25 am
Michael Stone Law Offices of Michael B. Stone Toll Free 1-855-USE-MIKE

If your attorney's negligence causes your bankruptcy case to be dismissed, you may have the right to a refund, plus actual damages, plus attorney fees, under 11 USC 526.

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Answered on 8/23/11, 12:52 pm


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