I just received a letter from my chapter 13 trustee that my case should be dismissed under sections 1307 (c)(1) ????

This is a common motion filed by Chapter 13 trustees in some divisions. Generally it is filed if the plan isn't confirmed at the first setting for confirmation. If for some reason confirmation is passed the first time around, the trustee will file this motion to get debtor's counsel to speed things up. In my experience, these motions rarely result in dismissal of the case unless there are feasibility issues that cannot be resolved.

11 usc 1307(c), in part, provides: “…on request of a party in interest … after notice and a hearing, the court…may dismiss a case under this chapter, [if it] is in the best interests of creditors and the estate, for cause, including-- (1) unreasonable delay by the debtor that is prejudicial to creditors;” It sounds like you may need to amend your plan.

I am not one to burden trustees with client calls but if you are faced with a dismissal due to a lack of diligence on your attorney's part you have to do something. First step, I would call the Chapter 13 trustee. Cooperation from a Chapter 13 trustee's office varies around the country. However, if they could clarify the issue for you then you could at least talk intelligently to your attorney. Next, give your attorney one more try. If they are not reply than consider speaking to another attorney about taking over the case. However, you have not been in your case 90 days yet. It is possible that the information you are reading is merely standard legalize sent out during the confirmation process. This may be clarified by a call to the Trustee's office.

I am not surprised. Where I practice, every Chapter 13 case gets an opposition that includes this language. Many times, your attorney must delay confirmation so that all claims can be filed so that you are not paying more than you need to. Wait to hear back from your attorney before you hit the roof! Hope this perspective helps!