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We were planing on paying our debt off with a automobile accident lawsuit judgment that was suppose to pay out years ago. We got too far in the hole and had to file chapter 7, the trustee meeting was last week. We just found out our settlement paid out. My question is can we dismiss the chapter 7 at this point?
11 ANSWERS
Criminal Defense Attorney serving Las Vegas, NV
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Advanced Litigation Services, Inc.
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Yes you could dismiss the case, but you should re-think that. The Settlement is exempt property, and you could get a fresh start by eliminating your debts with a discharge from the court
Answered on Aug 10th, 2011 at 7:31 AM
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No. Depending upon the amount of money paid out, you may be able to keep some if not all of the money you are receiving. If you didn't disclose the money, consult an attorney first before you do anything in court.
Answered on Aug 09th, 2011 at 1:21 PM
You have to get court permission to do so, but the Trustee will likely fight it, since his job is to take unprotected assets like some of your settlement, and pay claims. And so what if he does? - your creditors will be paid - and you will get a discharge from those who do not file claims. You have to disclose the settlement, and exempt what you can from it. If you did not list the possibility in your schedules, then the court might consider you desire to dismiss to be a bad faith request and deny it.
Answered on Aug 09th, 2011 at 10:20 AM
Bankruptcy Attorney serving Concord, CA
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William Rubendall Attorney at Law
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To dismiss a chapter 7 you need to file a motion. The motion must state a reason. It also must state that the creditors will not be prejudiced. It is not easy to dismiss a chapter 7.
Answered on Aug 09th, 2011 at 8:14 AM
Bankruptcy Attorney serving Herndon, VA
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Maureen O'Malley
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Unlikely. If you do, the US Trustee will want to see receipts showing you paid the debts listed in Ch. 7. An attorney could have helped avoid this.
Answered on Aug 09th, 2011 at 7:51 AM
Assuming you filed pro/se then did you list the lawsuit in the SOFA ? Did you exempt the future proceeds ? Did you mention it at the 341 hearing when the Trustee asked you about any pending lawsuits ? You should engage an attorney now before you screw this up any further.
Answered on Aug 08th, 2011 at 5:09 PM
Bankruptcy Attorney serving Hayward, CA
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Carballo Law Offices
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Yes.... you will need to file a motion to dismiss the case. Unless you have unprotected assets (non-exempt assets) the trustee will probably not oppose the motion.
Answered on Aug 08th, 2011 at 5:09 PM
judith runyon
Not likely. Your have to have the Ch. 7 Trustee's permission to do so, but he/she will probably demand the personal injury funds come into your bankruptcy so they can pay your debts off in the bankruptcy.
Answered on Aug 08th, 2011 at 5:09 PM
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You cannot dismiss your case without filing a motion and asking the court for permission to do so. The grounds to dismiss would be that it is better for your creditors to dismiss than to allow the trustee to administer the settlement funds to the creditors. As you can imagine, that is a difficult burden to meet. You do have an exemption of $16,000 in a personal injury settlement under Nevada law, so make sure you assert you are entitled to that amount.
Answered on Aug 08th, 2011 at 4:58 PM
Only the bankruptcy court judge can dismiss a Chapter 7 case. You do not have an absolute right to have your case dismissed. If you want to have your Chapter 7 bankruptcy case dismissed, you may file a Motion to Dismiss. The judge ruling on your motion must decide if dismissal is in the best interests of your creditors. If your bankruptcy is now an asset case and creditors would get paid if you remained in Chapter 7, but would not get paid if your case was dismissed, the judge may decide that dismissal is not in the best interests of your creditors.
Answered on Aug 08th, 2011 at 4:41 PM
Bankruptcy Attorney serving Livonia, MI
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Charles J. Schneider, P.C.
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It is doubtful that you will be able to as a Judge may determine that it would not be in the interest of the creditors. This will be the argument of the Chapter 7 Trustee who also gets a commission on the assets and can hire his own law firm to assist in administering the asset. The Trustee will be motivated to keep you in and he will also argue that his goal is compatible with yours.
Answered on Aug 08th, 2011 at 4:40 PM