Legal Question in Bankruptcy in California
I filed for Chapter 7 bankruptcy with the help of a lawyer in July. The first meeting of creditors was July 27. One of the creditors showed up at the meeting. He was a former friend and former financial advisor. He won a small claims suit against me for his loan modification services, but was not able to collect the money that was levied on my bank account because the bankruptcy trustee ordered the money returned to me. This creditor then wrote a complaint to the trustee accusing me of fraud and of hiding money from the court. I got word from the grapevine about what this guy did, so i wrote the trustee's office explaining that this guy has a personal vendetta against me. Today i received a Notice of Motion Y Motion to Extend Time for Filing of Motion to Dismiss Case for Abuse and For Filing a Complaint Objecting to Discharge. I contacted my lawyer but he said his legal representation is limited to the bankruptcy filing only. I called the trustee's office and left a voice mail to ask for an appointment to see him and explain my situation. I cant afford to hire another lawyer and i've been completely honest with my bankruptcy filing. What happens next? Does the Notice from the trustee's office mean that my bankruptcy is going to be denied? Would they conduct an investigation of assets before deciding on whether to dismiss or discharge my case? What can i do to defend myself, if i'm not able to hire a lawyer?
1 Answer from Attorneys
If you first meeting of creditor was on July 27, 2009, then the time for creditors to object to you receive a discharge normally would have expired on September 25, 2009. If all that has happened is that someone filed a motion to extend this deadline, which the the court has the power to do, they it simply means more time to investigate where there is legal grounds for denial a discharge.
These types of issues can often be worked out with the trustee, but they are also very busy and may not be responsive initially...sort of a "don't call us, we'll call you" policy. The will contact you when they are ready.
There are some very important facts missing form your post: (1) who brought the motion...the trustee or the creditor? (2) what reasons did they state for requesting the extension; and (3) how much time did they request? Post these facts in a new question and it might be possible to give you a more precise answer to you question. For now, you can either file an opposition to the request or simply cooperate by providing the information they request.
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