Expert: Terry Leeders - 9/24/2009

Question
QUESTION: Will I have any luck in getting anything from the debtor who owes me $50,000 who filed for Chapter 13?  I have a hard time getting an attorney to nhelp me as an unsecured creditor. All the attorneys are helping the debtors.  I received a letter on "trustees motion to dismiss". What does this mean?  Why will they convert to Chapter 7?  The trustee is asking for my response why the motion should not be granted.  Do I need to do this? As an unsecured creditor, do I have to even attend the hearing on the motion to dismiss? I am now doing this by myself. I already spent a lot of money fighting this debtor and I won a judgment for her to pay me.  But that same day I won, she filed for bankruptcy.  Thank you very much for your help.

ANSWER: You will receive the plan percentage to unsecured if you timely filed a proof of claim with the court.  The trustee represents all creditors, so you do not need to attend.

---------- FOLLOW-UP ----------

QUESTION: What does motion to dismiss means? Is this move in my favor? The trustee is asking for my response why the motion should not be granted.  Why will they request to convert chapter?  Will I have any chance of getting something if I am an "unsecured" creditor?

Thank you for your help.

Answer
The trustee motion to dismiss means that the debtor hasn't been paying the trustee. If granted, you can collect on your debt again.   you do not need to do this, you want it dismissed.  If the debtor converts, then the debt will be discharged if it is unsecured.