Legal Question in Bankruptcy in Massachusetts

Order dismissing Chapt 13 bankruptcy

I have been making payments to a Chapter 13 trustee for the past 16 months. I just received a letter in the mail that is a Motion of Chapter 13 Trustee for order dismissing case. The most recent payment I made to the trustee was on April 17th 2008. The order to dismiss the case states that on April 4, 2008 the court denied a proposed confirmation order due to a miscalculation in the Plan.

Can you please help me to understand the implications of this notice and what steps I need to take. Previous to this notice the only notice I received in the mail has been notices Confirming the Chapter 13 plan. What could have changed since I received these notices and the one I received today stating the order to dismiss the case. Any information you can give me would be greatly appreciated as it is a Saturday and I left a message with my attorney but would like to have some resolve over the weekend since I probably will not be able to get in touch with my attorney until Monday.


Asked on 5/03/08, 3:29 pm

2 Answers from Attorneys
Christopher Di Giacomo Di Giacomo & Gruss

Re: Order dismissing Chapt 13 bankruptcy

I am sorry to hear that. Based on the information you have provided, it appears that the plan itself is faulty. You need to review your petition and re-do your calculations regarding the breakdown of all your debts. You are going to have to tell your attorney that he needs to amend the plan to fix this oversight. It really is not that big of a deal. This happens quite frequently. As long as you make the monthly payments to the trustee, then you are okay.

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Answered on 5/03/08, 3:34 pm
David Baker Law Office of David Baker

Re: Order dismissing Chapt 13 bankruptcy

The trustee's motion could be based on one or more of several problems, and without knowing more it isn't possible to answer the question adequately. Once the plan is confirmed, only then does the trustee "set up" her computer system to track your payments and the claims. If you have made ALL of the payments required by the plan, it is possible that the problem is with the claims that were filed; if they total more than expected, the trustee would file a motion to force you and your attorney to modify the plan in line with the claims as filed. The trustee probably doesn't REALLY want the case dismissed; she just wants you and your attorney to look at the case and make adjustments, and once you do that, the motion would be withdrawn. This is not something to panic about, but do speak to your attorney on Monday or at the first opportunity. Best wishes, David Baker

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Answered on 5/03/08, 3:57 pm


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