Trustee’s Demands on Chapter 13 cases
We have been seeing many changes taking place with the Chapter 13 office. The things we used to be able to do, we no longer can do.
Recently we were told that we can’t file a motion to incur with shortened deadlines anymore. The trustee feels that it is not an emergency for you to purchase a house and is now requiring us to go by their hearing schedule. This happened over night with their change. They used to allow us to file a motion to incur with the shorten deadlines with no problems. Apparently other firms have been taking advantage of the shorten deadlines causing the trustee to loose patience and this is not what we want.
Another issue that has recently came about is that the trustee will not stop a wage order. There is no more of this, please stop so I can re-file. It’s do or die so to speak. You have to have a notice of conversion for the trustee to stop the wage order. This could be very painful for your clients when they want to convert and they are still taking their money out of their check and trying to save money for the attorney fees.
The new law has created some problems with people trying to fully succeed with their case. At times it feels like they want you to fail or something. Trying to explain these to your clients is difficult, but it has to be explained and make them understand.
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