Legal Question in Bankruptcy in New York

Non discharge of a completed Chapter 13 by a trustee

My husband & I completed the Chapter 13 plan filed in NY for 1 and half years

instead of 4 years because a windstar van has been returned and we did not have the plan modified ($654/month garnishment) in spite of financial difficulties. We did not have extra money to pay our lawyer to modify nor convert to Chapter 7 as our counsel advised.

I am an unlicensed foreign medical physician who is a poor test taker and has difficulty passing the USMLE for medical license.

The trustee did not want to close the plan because of I am a physician and we completed the chapter 13 too soon. Inspite of a lot of request to reconsider from me & my lawyer in New York, the trustee did not want to budge. We got emotionally, mentally & financially exhausted from the communicating from Texas to New York.

We requested the case dismissed. It was granted April 6,2001.

We felt DISCRIMINATED!

Can we FILE A LAW suit AGAINST THE trustee? Is there a way to convert the dismissal to discharge without going in to Chapter 7. Since we could not get a house because of the chapter 13 dismissal instead of a discharge, we are thinking of filling for Chapter 7 .


Asked on 6/02/01, 8:41 am

1 Answer from Attorneys
Garry Hanlon

Re: Non discharge of a completed Chapter 13 by a trustee

You were penny wise and pound foolish

Once the CH 13 was dismissed, you go back

to square one. It is as though the filing

never occured, except for credit reporting

purposes

A new filing will begin a new 2 year period

for most credit company's to consider a

mortgage application

There is no lawsuit possible against the Trustee

His job is to look out for your unsecured creditors

If they did not receive 100% of the funds owed to

them, the Trustee did nothing wrong The windfall

of the van return should have gone to the benefit

of the creditors, not to the debtor A motion

to amend should have been brought, probably reducing

the plan to a 3 year plan, but this is too late

to do

The dismissal cannot be converted to a chapter 7

after it is filed

Read more
Answered on 7/09/01, 2:32 am


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