We are in the process of being dismissed from our Chapter 13 bankruptcy due to the fact we got behind in payments following a series of unexpected, unavoidable expenses. When we filed we were told that due to our income, we could file for nothing less than a 100% Chapter 13 payback. After it is dismissed, we will be able to pay our car payment and our secured debt payments. However, we won't be able to pay back the credit card companies and the personal loans as well as medical bills. What can we expect to happen? Will we be sued? If so, how will payback be determined if we can only pay very minimal amounts?
Can't you get caught up on the bk payments? I don't even know if they allow that, but it seems to me, that is the way to go. As for will the creditors sue you? It depends on if the amount in question is worth it. If they do, and they get judgments, if your state allows wage garnishments, they will most likely start there on a first come, first served basis. They may also try to attach personal property and garnish any and all bank accts that they can find. The fact that you can only pay minimal amounts will not prevent them from collecting. If you have no personal property and no bank accts, stocks etc, then all they could most likely do is stand in line to garnish your pay checks. I would really try to get that bk rectified if at all possible.
Normally, once a CH13 heads for dismissal for non-payment, there is usually no stopping it. The trustee, however, usually gives a drop-dead date that the entire back payments have to be made by and once you pass that date, you are SOL. There is no negotiating. Although you can't refile for CH13 for 6 mo post dismissal, can you convert to CH7 before the dismissal? I don't know your circumstances, so I don't know if a CH7 is wise. Only you and your atty would know.
Actually, the only way you would not be able to file another ch.13 for 6 months after dimissal of your current case is if the case was dismissed with prejudice. Most often ch.13 cases are dismissed WITHOUT prejudice. You should find out whether or not your case is being dismissed with prejudice. Likely it is not, so you should be able to file for ch.13 again right away after your current case is dismissed.
Well; It is POSSIBLE that enough time has elapsed from your first delinquency on your credit cards and first request for payment on the medical bills, that you have gone beyond SOL on those accounts. If so, you cannot be sued on them. The bad news is that a ch13 that has been dismissed stays on your credit report 10 years from initial filing instead of 7.
The lawyer told me when I filed that my income was too great to file for anything less of a Chapter 13 100% payback. Even if I could file a Chapter 7, I can't understand how I can be expected to have a job if I have no transportation because my car was taken back.
I don't think we'll ever agree on this. LOL but I still go along with at least TU removing dismissals at 7 years.
julbox Hi, talk to your lawyer. Find out if your case is just being dismissed. If you cannot reinstate your current bk case, just let it dismiss. You need to find out from your lawyer though whether or not the case is being dismissed with prejudice. Like I said before, more than likely it will be dismissed without prejudice therefore allowing you to file for another ch.13 case once your current case is dismissed without having to wait 6 months. Please, talk to your lawyer and find out!!!!
julbox, There are some helpful people here. (This is where I found a reference to this board!). http://chat-cards.com/wwwboard/bankruptcy/messages.html#bankruptcy
