Legal Question in Bankruptcy in California

We just filed a Chapter 7 bankrupcy and had our meeting with the trustee. Our attorney had led us to believe that both our primary residence and a note payable to my husband from the sale of his business would be protected.. however at the meeting with the trustee we were informed that we would lose the note payable. As this represents a large portion of our income that we live on.. we are seeking advice on any option that might be available to us. What would be the reprecusions of not filing at this time and filing at a future time?


Asked on 7/27/10, 7:32 pm

1 Answer from Attorneys
Norma Duenas Southern California Law Advocates

Once you are in Chapter 7 bankruptcy you cannot easily dismiss the bankruptcy case. You do not have the option in a Chapter 7 to simply provide notice and dismiss your bankruptcy case. You will have to file a motion to dismiss the case and the court will only grant it if there is a good basis. The trustee can move to dismiss the case for a number of reasons, including abuse and not appearing at 341 hearing. You may want to consider converting your case to a Chapter 13 bankruptcy if possible, in order to protect the asset that the trustee intends to liquidate.

http://www.socaladvocates.com/chapter7

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Answered on 8/01/10, 8:47 pm


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