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Unfair Chapter 13 plan - I need some advice with my case to see if I have grounds to go after my attorney.

Lake Oswego, OR |

I have been in a plan for almost 5 years and now the trustee wants to dismiss my case because they don't think it is feasible for me to finish my plan all of a sudden. No word from anyone until I received the court document the trustee submitted for filing. My whole case has not been fair since I filed a Chapter 13 to save my house and then I ended up losing my house because of my adjustable rate mortgage.

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Attorney answers 4

Best Answer
Posted

You don't mention why the plan is seen as unfeasible. If your income dropped, you may be in line for a hardship discharge (chapter 13 discharge short of completion of the plan) or conversion to chapter 7. Both of these options are very fact specific - so you should work with your lawyer to come up with a plan to address this motion. Don't let it go without putting up a defense. You have almost 5 years into this plan - that will go a long way with the Judge to come up with a solution for you.

I hope this helps.
Respectfully,
Steven A. Leahy
www.chicagotaxteam.com

Please note that the above is not intended as legal advice, it is for educational purposes only. No attorney-client relationship is created or is intended to be created hereby. You should contact a local attorney to discuss and to obtain legal advice.

Asker

Posted

I don't feel my attorney has looked out for my best interest at all through my plan. I need to pay in my tax refunds before my plan is over; however, the trustee doesn't feel the additional money I pay into for my tax refunds should be applied to that--they want to apply to my creditors. They say all disposable income should be paid in and I shouldn't have extra money to pay in my refunds even though I am suppose to pay in my refunds. Doesn't make sense to me. I had lost my job during my bankruptcy and took a pay cut once I found a new job, but my attorney didn't feel the need top make any modifications.

Steven Anderson Leahy

Steven Anderson Leahy

Posted

It's not too late to get another attorney - If you paid a flat rate fee through the case, you already paid for your legal fees. You may be able to get some of the money back if the attorney has not be responsive. Good Luck! If you are so inclined, please choose an answer as "Best."

Posted

"Not feasible" is the trustee's conclusion based on something else. What facts did the trustee allege make your plan unfeasible all of a sudden? Failure to cure secured arrears? Failure to pay a priority creditor in full?

Anyhow, instead of looking for ways to blame your lawyer, look for ways to help you lawyer defend the motion.

Posted

Seeing as you are almost done with your plan, I would strongly urge you to call your attorney and discuss the situation with him or her. It is likely in your best interest to get your discharge, and therefore, should work with your attorney to do so. The trustee has to have a reason for stating your plan is now "unfeasible." Did you lose your job or have a wage decrease? Talk with your attorney about any changes in your circumstances. If the plan is truly unfeasible, it may be possible for you to convert your case to a Chapter 7. Worry about your bankruptcy now and the attorney later. Bankruptcy deadlines are strict and your claims against the attorney will not help defend the feasibility of your case.

Posted

As the other comments have indicated, you should contact both your attorney and the trustee. The trustee can communicate to you exactly what his/her issues are with your current plan. The motion to dismiss could be caused by a number of issues - failure to make plan payments and failure to provide for plan payments that cover all priority debts (taxes, certain child support arrears, etc) are common reasons. However, without more information it is impossible to say with certainty why your plan is no longer feasible. You should act with urgency as your ability to modify your plan may end as many jurisdictions do not permit modifications after 60 monthly payments have been made.

This information should not be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or viewing of this information does not constitute, an attorney-client relationship.