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My bankruptcy case was dismissed! What can I do?

Posted on Dec 3, 2009 in Bankruptcy, Bankruptcy procedures

Another firm’s client paid over $26,000 in a chapter 13 plan.  He was late a few payments.  But he got a new job and had some money.  Unfortunately, his former lawyer told the court that he had no defense to the Trustee’s motion to dismiss.  The chapter 13 trustee was so concerned that he sent the client to Lakelaw to try to help.  What can be done?

If a court enters an order, sometimes, it can be modified or even vacated.  You have to act fast.  Under Bankruptcy Rule 9023, you have only 14 days to ask the court to vacate an order which you think it should not have entered.

This can’t be done in every case.  You have to have a good reason. The main reasons for changing an order are:

  • Serious mistake of fact
  • Serious mistake of law
  • Newly discovered evidence

There’s another Rule, Bankruptcy Rule 9024, which allows post-judgment relief.  But here, you would have to prove:

  • Mistake, inadvertence, surprise or excusable neglect
  • Newly discovered evidence which could not have been discovered within 14 days of the order
  • Fraud, misrepresentation or misconduct by an opposing party
  • The judgment is void
  • The judgment is satisfied
  • Any other reason which justifies relief

At Lakeaw, we want you to get things things right the first time.  But if things go wrong, don’t give up.  You may have hope.  Call us at Lakelaw today at 1 866 LAKELAW (5253529)

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