RSSCourt would exercise discretion not to dismiss Chapter 13 case under “for cause” provision.
Jul 06
While it appeared that a Chapter 13 plan, as filed, was not sufficiently funded to permit performance of the debtor’s obligations thereunder, once the bankruptcy court generally allowed a proof of claim filed by a mortgagee, a bankruptcy court would exercise its discretion not to dismiss the case, in which the debtor had timely made every $600 plan payment, until the debtor was given an opportunity to amend the plan to pay the mortgagee’s allowed claim, as found by the court, plus other necessary claims and the trustee’s commission. A Dallas bankruptcy attorney court has considerable discretion in determining whether “cause” exists for dismissal of a Chapter 13 case and whether dismissal is the appropriate remedy.
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