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Help! BK 13 dismissed


darkcloud
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I don't know what to do next, any help/advice would be greatly appreciated. I remember a long time ago the Lady responded when this whole thing started.

Here's my situation: I filed chap 13 in April of 2004. I got a notice on the 7th of this month that the case was dismissed. My attorney never got back to me right away and I was worried he wasn't around anymore. I sent him a letter CMRRR on the 10th and he called me back on the 13th. He said I should re-file. My appointment with him is tomorrow the 15th and low and behold they came today and repo'd the car (included in BK). Besides feeling like a criminal now, is this normal or were they very short with their timing? I don't know what I'm going to do now. The lawyer is telling me that they dismissed because I didn't pay my taxes (I've paid every year for the past 30 years and should have no problem proving that).

I am truly wondering if the CC debt would be gone if it wouldn't pay me now to just let the vehicle go (over 4 y.o.) and deal directly with the IRS since they never communicated this with me but seem to have dealt directly with the trustee? I'm wondering if I can sue the IRS? How can the bank say I owe all this money on the car when I paid my BK plan or kept current with it?

Again any advice would be appreciated.

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I was sure LadynRed would have an answer for me! I'll rephrase the primary question just in case nobody understands my original post:

If a chapter 13 case filed under the old law is dismissed, does the unsecured debt that was charged off stay charged off or is it reinstated so that the unsecured creditors will come after it again?

I'm certain someone here knows the answer. Please help me as this is tearing me apart!

Sincerely,

Walter

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Sorry, I've been extremely busy and just haven't been here in a few days.

I take it the taxes you're talking about is income taxes ??

Once a creditor charges-off a debt they don't reinstate it, its off the books for good. However, that has nothing to do with whether or not the debt can still be collected upon. With the Ch 13 dismissed, I would not be surprised at all if you are contacted by collection agencies on those debts. Without the protection of the bankruptcy, you're fair game.

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It would depend on your state exemptions and whether or not proofs-of-claim were filed by the unsecureds. Dismissal of a C13 doesn't necessarily mean you revert back to square one. Your unsecured debt or a portion of it may have been discharged. Bear in mind that Homestead exemptions apply in C13 as they do in C7. You should consult your attorney on where to go next. The IRS is powerful enough to wreak havoc on just about anybody as you have seen in your situation.

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Thanks LadynRed, and please don't take my impatience as anything negative towards you, I'm really upset over this change in my status and can't get info and answers fast enough. So I apologize if I sounded pushy. I figured it would be something like that, sounds like it's a crap shoot then. Maybe they'll all see me as a cash cow or maybe they're so screwed up or just don't care about charged off debt that they'll let it go and move on (hopefully, if I'm lucky)? Maybe since I've been paying my plan on time for almost 2 years they've already put it on the back burner? Is there an SOL on unsecured debt? Thought it was 3 years or something?

Thanks for the reply ghacorp! Oh yes, you're so right about that. I literally shudder now that I've been on the receiving end of the IRS's wrath. And as for attorney's, I'm thinking I need to get a new one at this point. I signed up for PACER over the weekend and was finding several things that I had no knowledge of that happened in my case. I spoke to the case administrator yesterday and the IRS. The case administrator told me to call the Trustee and explain that the IRS is in error and they can re-instate the case. The IRS is telling me that my 2001 returns has a deficiency (thought there was an SOL with taxes too?) and that's what the dismissal is about. What I'm really confused and concerned about is that it was ammended into my plan several months after the original filing as I remember. So when I saw the letters from the court, I "a$$ u me d" that since it was in the plan that they were going to dismiss their claim. I didn't understand that they were dismissing my case. So they are saying I never provided proof that I filed my 2001 returns to the court and to let them come after me. This makes no sense to me. If I am paying on it in the plan, isn't that sufficiently saying ok, I'll pay your charge? Can't any of these people see that if I'm paying a bill to them through the plan that they probably charged me for it and that I'm not just deciding to be generous and pay tribute to them? Why do they want to "mess" (expletive subsituted) with me like that. And apparently this is after they did an audit of me in 2004 that I knew nothing about. The IRS told me yesterday that they audited me in 2004 and found that I owed additional taxes from 2001 from a 401k dist I took when I changed jobs (yes and like an @$$ I used the money to pay down cc bills). And then she said it will take about 3 weeks till I get a copy of it from them. Huh? If I moved like that in business I'd be out of it. I'm starting to think that they're making this up as it goes along. And shouldn't the Trustee been able to point that out to them? The lawyer's answer is that I should just re-file (and come under the new law and then I guess I get to pay him again too) since "they don't like to re-instate cases in this jurisdiction". Well I don't care what they like, if it's a right of mine as a citizen, then I should be able to use it if it's a better move, shouldn't I? Maybe he doesn't want to upset the judge or something but wasn't he already paid by me to prevent this sort of thing from happening? I guess it's so complicated now that I am not sure if I'm being too critical of him or anyone else involved but I'm thinking I might be being "manipulated" here. All the while paying over $200 a week for a rental car because my credit is bad now that I'm not having luck getting a loan for even a cheap used vehicle. My head is just spinning over this. I'd love to able to sue people over this or even if they'd see what happened and just discharge everything (yeah, right). I apologize for the ranting, I just feel so tied up from this that I want to strike back.

Again, thank you both for your answers and I welcome any and all comments, good or bad.

Sincerely,

Walter

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No, Homestead exemptions means a certain amount of equity may be protected in your home. It depends on the state in which you reside.

SOL's don't apply while in bk. The IRS may require a modification in the C13 plan to cover the tax deficiency. You should contact your attorney and work it out with the Trustee. Then, you should be back on track.

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Thanks all for the help!

ghacorp,

For what it's worth, I really don't trust the attorney anymore and think I'm going to have to try to wing this on my own. Afterall, what can they do, they've already dismissed it. I would think, after talking to some people and reading in forums, that I should be able to file a motion to re-instate the case. What I'm finding out is that the root issue is that the IRS filed a proof of claim for $xxxx.xx - unsecured priority (estimated) and then saying that they had to file an estimated tax claim due to my failure to file tax returns (this is where they lied - I've always filed, never late or extensions either). So, I guess I have to prove I filed and then try to make the IRS admit it.

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LOL, wow do I sense some dislike for the IRS too GrimRepo? Well, believe it or not, after yesterday talking with the Tax Advocate from the IRS, I actually came away with a much better taste in my mouth after this. I came to find out that although it was the IRS that filed a proof of claim (it's debt was already included in my re-payment plan) it was the Trustee who "decided" that the case should be dismissed. The IRS actually called the Trustee and showed them where they made the mistake and misunderstood that it wasn't for not paying taxes at all and that it was for the debt already included in the plan. I really did not think that they would do that. So I now I'm dealing with the Trustee over this.

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