I highly recommend that you get a different firm to represent you.
The above is general legal and business analysis. It is not "legal advise" but analysis, and different lawyers may analyse this matter differently, especially if there are additional facts not reflected in the question. I am not your attorney until retained by a written retainer agreement signed by both of us. I am only licensed in California. See also avvo.com terms and conditions item 9, incorporated as if it was reprinted here. Please visit my web site: www.avanesianlaw.com for more information about my services.
You have a very involved situation with substantial interests at stake. Please find an experienced chapter 11 attorneys that can protect your interests. Your family lawyer may not be able to protect your interests in the bankruptcy court.
Unfortunately, I do not believe that it is possible in this particular forum for an attorney to provide you with an opinion regarding the outcome. A motion by a creditor to seek dismissal of a bankruptcy filing for bad faith (as well as a counter-motion for sanctions) requires intense review and analysis of the facts and the law applicable in your circuit. If you are concerned about the advice that you are receiving from your present firm, then you will need to seek a second opinion as soon as possible.
You may be happy with your divorce lawyer, but you may be asking too much of him to represent you in a complicated bankruptcy matter. Do yourself a favor and hire separate counsel to represent you in the bankruptcy case. Good luck!
This general response is not intended to be legal advice because I don't have all the facts. The particular facts in each instance will change the recommendation significantly. Any statements made in your posting on Avvo are not protected by the attorney-client privilege because they are shared with third parties. I require a written contract for legal services, so an attorney-client relationship may not be presumed merely by my response to an Avvo posting.
You need bankruptcy attorneys, not divorce attorneys, handling this.
"Bad faith" in this regard has some very specific meanings. The simple fact that it makes your divorce more complicated would rarely meet these standards. I'm not surprised to see that such a motion led to a sanctions request.
Whether or not it makes sense to sell the properties is another question. Are they upside down? Are they losing money? Are they your means of support?