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Bankruptcy Law/I've changed my mind re: BK

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Expert: - 7/14/2007


Question
QUESTION: California resident. I hired a lawyer to handle my Chapter 13.  I've made my first payment to the trustee 3 days ago.  My meeting of creditors will be held in 5 days.  I have a primary residence, an investment property (which I may have to sell under the payment plan), $30K+ unsecured debt and I own the IRS $6K.
I come from a family of investment property owners and they want to help me keep my investment property and prevent me from filing Bankruptcy by gifting me cash from a re-fi.

At this point can I "cancel" or "withdrawl" my Bk proceedings?  Are the attorney and trustee entitled to their fees in full or partial if I do change my mind?

ANSWER: I you haven't previously dismissed or converted your case, you can usually dismiss your CHapter 13 easily (unless there's bad faith).   The Trustee will only take fees if disbursements have been made.  What your attorney gets depends on teh agreement you signed with him.

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

QUESTION: The re-fi won't fund til the end of this month.  Shall I attend the "meeting of creditors" on the 19th anyway?  How/will all my creditors be informed of this dismissal? Could the mortgage company sale my home between the time they are informed of my dismissal and the default/foreclosure is cured?

THANKS!!  You're providing a wonderful service!! {No bad deed goes unpunished ;o)}  I'm pretty sure my attorney will call me tomorrow regarding my questions -I just wanna enjoy the fruits of your experience!!

Answer
I can't answer your first question--that is something your attorney should advise you on.  As to your second question, your creditors will be informed when the court orders the dismissal.  The mortgage company can absolutely foreclose in the interim period if the sale date was continued to that time, that's why it's very risky to dismiss the case.  You are better off performing your CH. 13 with the new funds, than dismissing it in my opinion, but again, you need to discuss this with your attorney.

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Mark J. Markus- California Bankruptcy Attorney

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Mark J. Markus is a Los Angeles bankruptcy attorney who has practiced exclusively bankruptcy law in California since 1991 and is rated A+ by the Better Business Bureau and is AV-rated by Martindale-Hubbell. He represents debtors, creditors, and Trustees in Chapter 7, Chapter 11, and Chapter 13 of the bankruptcy code throughout California.

Experience

Visit our California bankruptcy webpage at http://www.bklaw.com for more information on bankruptcy in general and Mark J. Markus in particular. Many questions are answered on the web page (hint, hint).
The Markus webpage also contains more information on

  • Which Chapter to File,
  • business bankruptcy,
  • chapter 7 bankruptcy,
  • chapter 11 bankruptcy,
  • chapter 13 bankruptcy,
  • Do You Need a Lawyer to File Bankruptcy?
  • Frequently Asked Bankruptcy Questions

    Also visit our Los Angeles bankruptcy blog for interesting articles and much more.



    Organizations
    Central District Consumer Bankruptcy Attorneys Association (CDCBAA) Los Angeles County Bar Association (LACBA) Commercial Law & Bankruptcy Section of the Los Angeles County Bar Association Financial Lawyers Conference (FLC) National Association of Consumer Bankruptcy Attorneys (NACBA) Los Angeles Bankruptcy Forum (LABF) American Bankruptcy Institute (ABI) San Fernando Valley Bar Association (SFVBA)

    Publications
    Central District Consumer Bankruptcy Attorneys Association Newsletter September 2007 (Vol. 1, Issue 2)

    Education/Credentials
    J.D., University of Arizona 1990. B.A. Economics, California State University, Northridge 1986. For more details please click here

    Awards and Honors
    AV Rated by Martindale-Hubbell (http://www.martindale.com) A+ Rated by Better Business Bureau

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