Getting your case into bankruptcy is usually easy, but there are nearly a dozen situations in which a Chapter 13 case can be dismissed or converted to a Chapter 7 case against your wishes. It’s worthwhile to know what they are and thankfully they’re listed in §1307(c) of the bankruptcy code [http://www.law.cornell.edu/uscode/text/11/1307]. Here is a summary:
(1) Unreasonable delay by the debtor to a creditor’s detriment
(2) Nonpayment of court fees by the debtor
(3) The debtor fails to file a repayment plan before the deadline
(4) Debtor doesn’t begin making timely payments on the plan
(5) The plan isn’t confirmed or the request for more time to file or modify the plan is denied
(6) The debtor “materially defaults” on a confirmed repayment plan
(7) The order of confirmation is revoked or a modified plan is denied confirmation
(8) If the debtor fails to meet a certain condition in the repayment plan that calls for the plan’s termination, the case can be dismissed
(9) The Trustee can request a dismissal if the debtor fails to file the appropriate paperwork listed in §521(a)(1) of the bankruptcy code, which includes all the information necessary to proceed with the meeting of the creditors (a list of creditors, list of assets and liabilities, income and assets, etc.)
(10) The Trustee can also request a dismissal fit the debtor fails to file the paperwork listed in §521(a)(2) (what the debtor intends to do with secured property, and whether the debtor carries that out within 30 days)
(11) The debtor fails to pay domestic support obligations that are payable after the date the bankruptcy petition is filed
As you can see, these situations are fairly straightforward and commonsensical, but they can arise. If you don’t hire an experienced Las Vegas bankruptcy lawyer, it’s easy to see how one of these seemingly innocuous details can thwart a good faith Chapter 13 bankruptcy plan. It’s for this reason that going alone in a bankruptcy just isn’t a good idea.
For more questions about bankruptcy in Las Vegas, please feel free to contact an experienced Haines & Krieger Las Vegas bankruptcy attorney for a free initial consultation. Call us at 1-702-880-5554 to set up your free consultation.