My ex filed chapter 13 this summer and he had lied in his income . He stated to the BK a gross / month which was 80s more that to the family law . He is to be in court next week for the reasons above . what does that mean ?
Chapter 13 Bankruptcy Attorney
It appears that the court, a creditor or the trustee has questions about why your ex filed his bankruptcy and whether whatever he is doing was not done in good faith and/or he has not been making the payment called for under his plan and the trustee or some creditor is seeking to have his case dismissed.
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Attorney Caldwell has good advice.
First of all, the income reported in Chapter 13 schedules very well might be different than what was reported on Family Law papers, and there may be good reasons why they are different.
Second, it sounds like he is not pursuing the reorganization plan appropriately and his case may be dismissed or converted to Chapter 7 by the Court. It is quite difficult to speculate WHY because there could many reasons.
If you need further clarity, please email me at MICHAEL@MIRELAND.US Answers to questions are for general information purposes only and do not establish an attorney-client relationship. This is not legal advice, simply information. You SHOULD NOT act on this information without consulting a competent bankruptcy attorney in your area and providing ALL relevant information.
For a chapter 13 bankruptcy to be successful you need an experience attorney to put a plan together that will satisfy the court, the trustee and the creditors. If your ex did not engage the services of an attorney he should immediately consult with one who could attempt to salvage this for him. As he stands it appears that he is in jeopardy of getting his case dismissed for a variety of reasons.
The family law gross income could be different from the bankruptcy gross income because the bankruptcy is looking at the 6 months immediately preceding the bankruptcy and his income could have changed since the divorce.
Remember that on this forum attorneys try to answer your questions with limited facts available to them. My answer should in no way be considered legal advice. No attorney client relationship has been formed by any answer given here.
Chapter 7 Bankruptcy Attorney
The Chapter 13 Trustee filed the motion to dismiss for not making the plan payments. That is an easy fix. All he has to do is catch up on the payments or amend the Chapter 13 Plan to adjust the payments and he will then be current.
The Chapter 13 Trustee most likely filed the motion to dismiss for delay. It is common for Chapter 13 Trustee's to file this motion when there are unaswered questions or documents are not produced in a timely manner. The motion is pursuant to section 1307 of the Bankruptcy Code. Again, he can easily fix this by doing what the trustee has asked or the Court may just give him more time to comply if there is a resonable explanation for the delay. There are many reasonable explanations why the Chapter 13 Plan cannot be recommended for confirmation/approval by the Chapter 13 Trustee.
The case may very well be dismissed at the hearing though if the case has been pending for a long time with little progress in meeting the requirements for confirmation pursuant to section 1325 of the Bankruptcy Code.
Ryan C. Wood is a Bay Area bankruptcy lawyer and has been practicing exclusively bankruptcy law in California since 2007. Mr. Wood formerly worked for David Burchard, Chapter 13 Trustee for the Santa Rosa and San Francisco Divisions of the United States Bankruptcy Court for the Northern District of California. West Coast Bankruptcy Attorneys has filed hundreds of bankruptcy cases and has an “A” rating by the Better Business Bureau.
Legal Disclaimer: Ryan C. Wood practices law in California only. Any answers to questions re not intended to be legal advice or create an attorney-client relationship. Always consult an attorney in your jurisdiction about your particular circumstances.