Lawyer told me and my lawsuit attorney that the chapter 7 would not affect my lawsuit, that it may delay it for a couple of months is all. Now I am finding that the trustee has taken it over but is doing nothing with it. If a motion to compel is not sent in by the 29th it will get thrown out of court. What can I do? Can I withdraw from bankruptcy ?
When you file a chapter 7, it is next to impossible to withdraw it because you need to show that your creditors would be better off without this suit in order for the court to okay a dismissal of the case. Why aren't you asking the trustee to abandon the lawsuit if s/he doesn't want to pursue it? Hope this perspective helps!
Withdrawal from a Chapter 7 is not a matter of right and is not routinely granted, especially in these kind of circumstances. Any asset, including the right to sue someone becomes property of the estate upon the filing of a bankruptcy petition. You might have your attorney file a motion for the trustee to abandon the lawsuit but is difficult to think it would be resolved before the 29th. You need to speak with both of your attorneys and have them come up with a solution.
Please note that any comments made are intended as general information only and not specific legal advice. No legal representation is offered without a written and signed Fee Agreement.
You've asked this a couple times. The answer is still that you cannot voluntarily dismiss a ch7 without court permission which will be very unlikely. I suspect either your attorney did not understand your question or concern about the consequences likely to occur regarding your lawsuit or, frankly, is an idiot. It is pretty basic that a claim against another party becomes the property of your bankruptcy estate and, unless there is some sort of applicable exemption for the subject matter (for example, in NC where I practice, personal injury claims are exempt) then the claim will become the trustee's to deal with and the trustee will have control over what happens from the time you file until your bk is fully administered and the trustee does not have to tell you anything nor does he have to give you any proceeds until and unless all your creditors' claims are paid in full, he gets his commission and the attorney for the estate gets paid.
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