I Filed a Chapter 13 Bankruptcy But Now it is Getting Dismissed. – Laketia

Laketia wrote to me through the GetOutOfDebt.org site and asked the following question. If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.

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“Dear Steve,

I filed chapter 13 bankruptcy in June of 06, I was laid off of my job Jan 09 I notified my attorney and I was told I still had to make my payments. I did’nt have a option of getting my plan decreased or anything I was just told to find a job point blank! Now my case is getting dismissed and I don’t know what to do or where to start to be able to keep my home and my car. please help!!

After my chapter13 case is dismissed where do I go from there?

Laketia”

The Answer:

 

Dear Laketia,

I’m going to ask some of my bankruptcy friends to comment on this question.

Big Hug!

I Filed a Chapter 13 Bankruptcy But Now it is Getting Dismissed. Laketia dismissed chapter 13 bankruptcy ask the get out of debt expert
@GetOutOfDebtGuy

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  • http://HowtoGetOutofDebt Sammie Bedford

    I am late 2 payments on my BK 13. On the 25 it will be 3 payments. I plan on making all the payments by Aug 1. I will be receiving a Notice of Dismissal, by paying off the amount due stop the Dismissal. I live in California.

  • http://google phyllis

    my husband filed chapter 13 and he has a lawyer he got a plan with the bankruptcy court, but i pulled up his credit report and the bankruptcy court is reporting that it has been dismissed but money is being taken out of his paycheck every 2 weeks, also on one item it’s showing that an item included in the bankruptcy has been discharged what does all of this mean, if the bankruptcy dismissed but is taking his money and another item that is included in the case was given to another company on his credit report it’s reporting as been written of, but this company sent his spouse aletter stating that they are the new finance company and also have a new loan number what does all of this mean, i’m not on the loan just my husband and daughter also can a bankruptcy stop a person from getting employment.

    • http://GetOutOfDebt.org Steve Rhode

      Phyllis,

      You and your husband should contact your bankruptcy attorney and get your specific questions answered.

      Steve

  • http://www.oklahoma-bankruptcy-attorney.com Dan Nunley

    Jeff,

    I have to disagree with your advice to Laketia that debt such as medical bills incurred after filing the 13 would not be discharged if the 13 was converted to a 7. I have converted many 13s to 7s and regularly discharged unsecured debt incurred post-petition. See 11 USC 348(d).

    Dan Nunley

    • http://GetOutOfDebt.org Steve Rhode

      Dan,

      Great advice for all to see. Thanks.

      I’m always learning.

      Steve

  • http://www.chs-law.com/rss.xml Carl H. Starrett II

    If Laketia can report back what her attorneys say in response to the issues raised, it might be possible to provide more focused comments about the matter at hand.
    .-= Carl H. Starrett II´s last blog ..California’s 90-Day Foreclosure Moratorium Really Isn’t =-.

  • http://tinyurl.com/ca5mez Jeff Jackson

    Laketia,

    The two previous comments are very good. Without knowing the full specifics of your case, it is very hard to make a general statement aobut how you should proceed.

    As mentioned earlier, there may be a legitimate reason to let the Ch 13 be dismissed, say you have accumulated additional debt (medical bills) post petition. In this situation converting to a Ch 7 would not discharge new debt.

    Follow the advice above. Ask your attorney to explain to you what your options are and why you should or should not convert to a Ch 7 or modify your existing Ch 13. If you do not have an income stream at this point it would be very difficult to modify your Ch 13. There may be other reasons why you should not convert to a Ch 7 at this time.

    Best of Luck

    Jeff

  • http://www.chs-law.com/rss.xml Carl H. Starrett II

    When a bankruptcy judge confirms a Chapter 13 plan, it is a binding order on the debtor and the creditors. If the debtor makes all the payments, then the debtor will receive the benefits of the discharge as well as the other terms of the plan. Chapter 13 is often used to cure a default on a mortgage, strip a lien from a home or “cram down” a car loan. During the course of the plan failure make the plan will result in dismissal. There are several possible options, but it doesn’t sound like your attorney explains things clearly.

    The most common option would be convert the case to a Chapter 7 bankruptcy. However, you might lose the benefit of some of the reasons that you filed for Chapter 13 in the first place and you may not qualify for Chapter 7. If you are still behind in your mortgage, Chapter 7 will only delay the foreclosure.

    You may allow the case to be dismissed. It would be as if you had never filed for bankruptcy. This option is not desirable because much effort has gone into your bankruptcy.

    You could also file a motion to modify the terms of the plan to make them more affordable, ask for a suspension of the payments or to request a hardship discharge (i.e. to be excused from the remaining plan payments and still get a discharge).

    Your attorney may believe that you have no other choice than to let the case be dismissed for unknown reasons. The attorney may simply not be willing to put more effort into the case or not be familiar with the other options I listed above. There are too many variables for me to comment specifically on your situation.

    I think you need a second opinion. I would visit the website for the National Association of Consumer Bankruptcy Attorneys and find someone in your area for a consultation.
    .-= Carl H. Starrett II´s last blog ..California’s 90-Day Foreclosure Moratorium Really Isn’t =-.

  • http://www.oklahoma-bankruptcy-attorney.com Dan Nunley

    Laketia,

    When you become delinquent in your Chapter 13 plan payments, it is common practice for the Chapter 13 Trustee to file a Motion to Dismiss Case. However, instead of just letting your case be dismissed, you can do several things.

    If you gain new employment or have another steady source of income, you can file an Objection to the Motion to Dismiss and file your own Motion to Modify Chapter 13 Plan proposing a modified plan that will cure any delinquency and pay according to your new level of disposable income.

    If that isn’t feasible and you qualify for a Chapter 7 discharge, you can file an Objection to the Motion to Dismiss and a Notice of Conversion to Chapter 7. You have the unilateral right to convert your Chapter 13 to a Chapter 7 at any time by simply filing notice that you are converting.

    If you are still represented by your attorney, you need to talk with him or her. If you have a knowledgeable and competent attorney, he or she should know how to handle this issue for your best interest. I wish you well.

    Dan Nunley
    http://www.oklahoma-bankruptcy-attorney.com

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