The Code requires notice and a hearing before a bankruptcy court dismisses a debtor’s chapter 13 case and a contrary Local Rule is invalid. No v. Gorman (In re No), No. 17-1679 (4th Cir. May 24, 2018).
Sarah Hyunsoon No filed for chapter 13 bankruptcy and filed a proposed plan but failed to attend the meeting of creditors or make the first payment under the plan as required under section 1326 and Local Rule 3070-1(C). The trustee, Thomas Gorman, certified to the court that by failing to commence payments under the plan, Ms. No had failed to comply with the Local Rule and that her case was therefore subject to dismissal. Although the bankruptcy court scheduled a hearing on the motion, it dismissed Ms. No’s case prior to the hearing. The district court affirmed. [Read more…] about Local Rule for Dismissal without Hearing Is Inconsistent with Code