Bankruptcy Lawyers San Diego - Trustee's Motion To Dismiss

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TRUSTEE'S MOTION TO DISMISS

The Trustee reserves the right to utilize the Dismissal procedures set forth in G.O. 98-4 and

G.O.

2003-03 at any future date. The Trustee will use the following procedures when filing Motions to Dismiss:

A.
Dismissal for Paperwork.

Failure to file complete proper forms and documents as required will result in a Trustee's Motion to Dismiss. Contested hearings on the Trustee's Motions to Dismiss will be set a minimum of 20 days after the Motion is filed. Once the Motion to Dismiss is set on the Court's docket, the Debtor will have to attend a Pre-Hearing Conference with the Trustee to present the paperwork to the Trustee, unless the matter has been resolved two days prior to the Court Hearing. If the paperwork is complete and correct, the Trustee's Motion to Dismiss will be withdrawn and the case will be removed from the dismissal docket. IT IS A DEBTOR’S RESPONSIBILITY TO ENSURE THAT THE PROBLEM RELATIVE TO THE TRUSTEE’S MOTION TO DISMISS HAS BEEN RESOLVED AND PROOF HAS BEEN PROVIDED TO HIS OR HER ATTORNEY AND THE TRUSTEE. Refer to following sections of the guidelines for more details:

Section II. DOCUMENTS REQUIRED BY THE BANKRUPTCY CLERK

Section III. DOCUMENTS REQUIRED BY THE TRUSTEE

B. Dismissal for Plan Payment Default.

If a Debtor fails to timely make payments, the Trustee will file a Motion to Dismiss and request a hearing on the next available Court docket. First payment default will be cause for automatic dismissal pursuant to G.O. 98-4 and G.O. 2003-03. All Motions to Dismiss filed by the Trustee will include a twenty (20) day notice period pursuant to B.R. 9007. If an Interlocutory Order or an Agreed Order has been used to cure plan payment arrearages, the Trustee will monitor the case for compliance and any default of the Order will result in an automatic dismissal. IT IS A DEBTOR’S RESPONSIBILITY TO INSURE THAT THE PROBLEM RELATIVE TO THE TRUSTEE’S MOTION TO DISMISS HAS BEEN RESOLVED AND PROOF HAS BEEN PROVIDED TO HIS OR HER ATTORNEY AND THE TRUSTEE. Refer to following sections of the guidelines for more details:

1. Section I. PAYMENTS TO THE TRUSTEE

C. Dismissal for Insufficient Plan Base.

It is possible that a Debtor successfully makes all Plan payments required to satisfy the Plan “Base”, but is not granted a discharge because the plan base proved insufficient to pay all allowed claims. This may occur for several reasons. The most common are that claims (such as that of the IRS) are amended and the Final Plan is never modified to deal with the amended claims, or the Debtor became delinquent and secured debt could not be paid as originally amortized. Therefore the Trustee will file a Motion to Dismiss the case. The Debtor may have the following options:

If it is practical, the Debtor may object to claims, which might have caused the Plan “Base” problems.

If the Plan has not reached a sixty (60) month term, the Debtor may modify the Plan to treat the remaining claims.

Finally, the Debtor may seek a discharge and except from discharge the unpaid balances owing on such claims.