![]() Under this scenario, an automatic stay will not be immediately granted. If you attempt to file a new Chapter 13 bankruptcy case within a year of having two or more cases open, the process becomes even more difficult. ![]() For your motion to succeed, you must prove that your circumstances have changed and that you are likely to complete the new case. However, after that 30 days is up, you will have to file a motion with the court seeking to extend the stay. When you attempt to file again within one year of having a previous Chapter 13 case open, you will be granted a 30-day automatic stay that prevents your creditors from contacting you. If you voluntarily dismiss your Chapter 13 bankruptcy, you will likely be able to file again right away. Can You File Again After You Voluntarily Dismiss Your Chapter 13 Bankruptcy? The trustee will then stop deducting money from your paychecks and your case will be dismissed. You do not need to waste your time explaining your decision.Īfter submitting notice to your Chapter 13 trustee, they will file a motion to dismiss that formally establishes your dismissal. You have the right to dismiss at any point. ![]() Your notice of dismissal does not need to go into the specific reasoning behind your request. The letter must either be mailed or hand-delivered to the office of the trustee. Your notice should include your name, case number, and your signature. You will need to submit a written notice to your Chapter 13 trustee informing them of your decision. The process for requesting a voluntary dismissal of your Chapter 13 bankruptcy case is relatively simple. How to Request a Voluntary Dismissal of Your Chapter 13 Bankruptcy You may end up owing more money than you originally owed if you fall behind on other payments like your mortgage in order to satisfy your expensive repayment plan. In this scenario, it may be advantageous to dismiss your case and resolve your debt through negotiation.įurthermore, you may want to dismiss your Chapter 13 bankruptcy because your scheduled payments have gotten to a level where you can no longer afford them. For instance, if you receive a pay raise while your case is still active, your new income may have to be paid directly to creditors. There are multiple reasons that you may want to dismiss your Chapter 13 bankruptcy. Why Would You Want to Dismiss Your Chapter 13 Bankruptcy? ![]() You may consult with our Bensalem bankruptcy lawyers to determine the best course of action in your case. It is important to understand how your creditors will react before voluntarily dismissing your Chapter 13 bankruptcy. Furthermore, after dismissing your case, you may face accrual of interest on outstanding debts, damage to your credit score, and an extended waiting period before being eligible to file for bankruptcy again. You will owe them the same amount that was due before declaring bankruptcy, minus any payments you made before your case’s dismissal. ![]() Accordingly, your creditors may once again seek to repossess your property or foreclose on any collateral that serves to satisfy your debts. However, you will lose your “automatic stay” that prevents creditors and collection agencies from contacting you. Furthermore, neither the Chapter 13 trustee or the court will have any further jurisdiction over your tax refunds, income, or anything else mentioned in your plan. Once the bankruptcy judge presiding over your case signs the order granting dismissal, you will no longer need to make the payments outlined in your repayment plan. While you have the right to voluntarily dismiss your Chapter 13 bankruptcy case, it is important to understand the consequences of doing so. Consequences of Dismissing Your Chapter 13 Bankruptcy If you need help with your bankruptcy case, get in touch with our experienced bankruptcy attorneys at Young, Marr, Mallis & Associates by dialing (609) 755-3115 today. You will owe your creditors whatever was due before initiation of your bankruptcy case, minus the payments that were made while your case was active. In other words, your creditors will be allowed to resume collecting on their debts, potentially repossessing your assets or foreclosing on your property. However, you may lose the benefit of being in a bankruptcy case. Afterwards, you will no longer be obligated to make payments under your designated repayment plan. After successfully declaring Chapter 13 bankruptcy, a monthly payment plan will be established that allows you to repay your creditors over a specific period of time.Īs a debtor, you have the right to dismiss your Chapter 13 bankruptcy case at any time. Home » What Happens if You Voluntarily Dismiss Your Chapter 13 Bankruptcy? What Happens if You Voluntarily Dismiss Your Chapter 13 Bankruptcy?Ĭhapter 13 bankruptcy is a form of bankruptcy that allows you to reorganize your debts. ![]()
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