Legal Question in Bankruptcy in Virginia

we received a ''notice to show cause'' after a nonconfirmed yet chap 13 was file

My husband only, not myself, filed a chap 13 on 7/17/05 for himself personally as well as his small construction business. He had his own construction business and had to fold. He was a sole proprietor for a year. However, the last 4 months of the year he was an S Corporation. He owes far to many employment taxes to the IRS (mostly from when he was a sole propiertor) as well as a great deal to subcontractors that he could not pay. The bankruptcy, it is still pending and has not been confirmed yet. He hasn't made his first payment yet as his attorney never told him he had to yet. His attorney sent a letter and stated if the payment is not made the case could be dismissed. This put us in a bind. The payment is to much. We now have received a letter from the court that states a ''Notice To Show Cause'' to wher he now has to go in front of the judge. It states to show why the case should not be converted to another chapter, civil contempt (?), including dismissal. My house's deed has both our names but I am the only one of the mortgage. My husband wants to file a chap 7 but I don't want to lose my house or both our cars (cars in his name). What does this letter mean. His attorney is terrible as he is not communicating everything to him.


Asked on 9/20/05, 10:24 am

1 Answer from Attorneys
Daniel Press Chung & Press, P.C.

Re: we received a ''notice to show cause'' after a nonconfirmed yet chap 13 was

Without seeing the notice, I can't comment specifically, but he presumably needs to go to court to explain why payments have not been made. If he can't catch up (and cure any other problems) by the date of the show cause hearing, it is likely the case will be converted or dismissed, and possibly a bar to refiling imposed (which could be disastrous with the new law taking effect on 10/17). If he is not happy with his current lawyer, he (or you) can certainly consult with another lawyer to get a second opinion, or to replace the existing lawyer. However, he should sit down and have a detailed conversation with his current lawyer (not just a paralegal at his/her firm), as the problem may have been a communication issue.

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Answered on 9/20/05, 10:52 am


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