Legal Question in Bankruptcy in Pennsylvania

motion to dismiss

we filed for bankruptcy in jan./2003. we had a meeting of creditors in june. I just received a copy of a letter from the trustees asking for a motion to dismiss due to the reason'' The plan does not appear to be feasible''

we've paid the mortgage and the trustees payment on time since we filed .

why would they say its not feasible?

what are they saying?

how often does this happen?

can we change their mind?

please help..am I losing sleep over something common?


Asked on 8/03/03, 3:28 pm

1 Answer from Attorneys
Matthew Nahrgang Nahrgang & Associates, P.C.

Re: motion to dismiss

First, I strongly suggest you consult with your attorney on the case. There are 2 reasons for this. One is that you paid him and you are entitled to representation. The second is that he needs to take action to avoid a dismissal.

A Motion to Dismiss is filed in a Chapter 13 case when a Trustee believes the proposed plan does not fulfill the requirements of Chapter 13. One such requirement is that all priority debt such as tax debt be paid in full over the life of the plan. Another is that all arrears to secured creditors be paid in full. It is likely that the amount proposed is not sufficient for one or both of these issues. In that event you will have to amend the plan to provide for higher payments in the future.

I trust this has been helpful but do not hesitate to call or E-mail on a free initial basis.

Read more
Answered on 8/04/03, 1:37 pm


Related Questions & Answers

More Bankruptcy Law questions and answers in Pennsylvania