I just received a “Notice of Lack of Feasibility” from the Trustee. What does that mean?
First, the Trustee’s “notice” is not a motion to dismiss your case but instead is a notice to you that there will be a shortfall owed to the Trustee as of your last scheduled payment. The general practice of the Trustee is to allow your existing monthly payment to continue without change. The shortfall to the Trustee typically occurs when the legal documents filed by creditors in a Chapter 13, or proof of claims, exceed the balances listed in the bankruptcy schedules by the person filing. A lack of feasibility may be cured by a successful objection to a proof of claim, an increase in the monthly Trustee payment or the turnover to the Trustee of a lump sum such as a tax refund.