Expert: Terry Leeders - 4/6/2007

Question
I received a Letter of Dismissal from the Trustee's Office stating that it can not go over the 60 months of the plan, what does this mean? Do I have to pay the base balance? Is my home going to go into forclosure?? Do I have to pay all of the unsecured debts?

Answer
Hi Kristy,

I actually just got one for a client of mine this week too.  What happened is that the trustee's office audited the creditor claims that came in.  They must have been higher than you had estimated when you filed the case, or else you may have missed one.  Anyways, your plan must complete in 60 months, otherwise your plan is not 'feasible' under the bankruptcy code.  You should contact your attorney to review the claims, make sure none are 'doubled up' and have the lawyer prepare a modified plan.  If all of the claims are accurate, you would need to increase your plan to allow the case to complete in 60 months.  Best of luck
Terry