In re Lanehart (Sep. 9, 2008)
Issue: Is Debtors’ failure to attend the pre-confirmation meeting with Trustee or her representative and to provide requested information at that meeting constitutes grounds for dismissal under § 1307(c)(1), as causing unreasonable delay that is prejudicial to creditors?
Holding: The Court finds that Chapter 13 Trustee’s Motion to Dismiss Chapter 13 case should be conditionally granted. “The Trustee did not allege any additional grounds for dismissal under § 1307, nor did she allege any facts that would show that there was a delay caused by the Debtors’ failure to attend the conference, or that creditors were prejudiced as a result of any such delay. Accordingly, the facts alleged do not support dismissal. However, the Debtors through their counsel have admitted that they are not in contact with him and so are unable to prosecute their Chapter 13 case. In essence, through their counsel they have indicated their lack of opposition to dismissal provided they are given the opportunity to convert their case to one under Chapter 7 instead. The Court will therefore so order.”