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Just found out my Chapter 7 was dismissed!!!


kwiecin619
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Hi,

I need some advice. I just found out that my Chapter 7 filing was dismissed. I don't even know where to begin. First of all, I've been told all along by my attorney's that this is an open and shut filling. As you can imagine when I called them they told me that they would call me 'tomorrow' after they had a chance to look over everything. I am a mortgage broker and get paid W2'd. I have a lot of expense that is not reimbursed by my company that I must pay out of pocket to continue to run my branch. It looks like the main reason for the dismissal is my business expenses. it states that they are 'excessive or overstated' and this is not true. I can prove it. It's the cost of rent, marketing, credit reporting, shipping, etc.

Before telling me they would call me tomorrow, they said its probably easier to convert into a chapter 13 instead of fighting it further (to much cost). What???? I really think they did a awful job in submitting my case. When we had the meeting with the trustee, the lawyer did not have a clue about anything specific with my case. When the trustee asked him a question about my business expense he had to call his office. In my opinion, very unprofessional.

Sorry this is so long, I'm getting to my point. I do not want to convert to a chapter 13. Before filling the attorney told me not to make any payments to the credit card companies (which was about 3 months time) I checked my credit an a few of the companies had already charged off the credit cards. Because my credit has already been ruined, should I just let all the companies charge off. Being a mortgage broker, I have seen many customers with large chargeoffs who have built their credit back up. I just can't imagine going this far thinking this was behind me and now have to come up with some payment plan.

I live in PA and was told that the charge offs would not affect my title on the house and it is very unlikely they will come after me with a law suit.

Could someone please give me anything to go on. I'm at my wits end.

Thanks,

Scott

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How is it that you have so many expenses that are not reimbursed by the company ?? That is probably the big question in the Trustee's mind and you will have to PROVE that the expenses are reasonable and necessary for your business. Do you claim these unreimbursed expenses on your tax return ??

You most certainly can fight this, but you're going to have to make an iron-clad case to dissuade the Trustee not to dismiss. I would sit on your lawyer to fight it - unless he doesn't have what it takes to go against the Trustee. Suggesting a CH 13 because its 'easier' is an easy out for him AND more money too.

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Thanks LadynRed!

I run my own branch for the mortgage company. All expenses are my responsability. I sounds extreme but I receive a higher percentage of the fees earned than if I was not running a branch. I do deduct these on my tax returns. I should be able to show enough proof to hopefully have this overturned.

If for some reason this does not get reversed, do you think I should let the card companies charge off my balances or is there something that I'm missing here. My credit is wrecked already, I just don't see the benefit of a chapter 13. Hopefully, someone can show me the light if I am totally of course with my thinking.

Thanks

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  • 2 weeks later...

I'll bet your filing wouldn't have been dismissed if your Attorney was properly prepared and responded quickly and accurately to the Trustee's questions.

Trustee's listen objectively when presented with a reasonable reply. I've lost confidence in your Attorney and recommend reviewing your situation with a different Attorney before continuing. I know it costs more, but you really want someone who is prepared.

One creditor showed up at the 341A meeting for my chapter 13. He came unglued and it got ugly. I'll always remember how my attorney took over and handled the situation. He was quick, consise and in control. It's a good feeling having a prepared attorney represent you when it really matters.

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