I'm interested in learning about others experiences following CH 13 dismissals. Hindsight of course is.. well you know the saying.. Among the most serious consequences I've had besides the obvious is the CA's coming out of the woodworks to now collect on debts that were not discharged thru the BK.... Please share...if you will...
It's fairly cut and dry. Depending upon various other factors, your obligation to repay your debts may be revived, creditors and CA's may begin contacting you again and attempting to collect the debts and/or enforce judgments, creditors may initiate judicial remedies (e.g., sue you for damages, garnish wages), etc. To top it all off, the Chapter 13 BK remains on your credit histories for 7 years from the day you filed, regardless of whether or not it was dismissed (it will be updated accordingly). Bottom line, don't file a Ch 13 BK if you intend to NOT follow through.
My husband and I are going through bk13 right now. You mean these 5 creditors can come back to us after the 5 years of paying to re-collect on the upaid balance???? I'm confused =(
I understand what John is saying. But my situation was that I DID NOT complete my payment plans.... my MAIN reason for doing so was to Stop Foreclosure until I could get things together. If you are paying the trustee every month per the plan, then when you finish your debts are discharged....no further action from creditors... I DID NOT finish paying and my case was volutarily dismissed, so that is why my creditors are coming around again.
np- I sensed your worry.. and didn't want you worrying so I wanted to explain my situation...thanks and good luck to you too!!!
Put up the shields, protect your secured assests, and potentially live with a garnishment or two. I could be wrong, but I believe if your case is dismissed (not discharged) you can refile a 13 in 180 days (six months). I'm not positive, but you might want to check into this. Good luck.
No. 720mstry said "dismissed", not "discharged". As was already explained, "dismissed" means the program was NOT completed, and "discharged" means you completed the plan as agreed and the debts included in the CH13 BK are gone. Don't be. You're fine.
Please if there is another thread that has other's Chap 13 experiences please point me to it.. I'm having trouble and much of the BK info I have found is reference chapter 7. I am inquiring specfically about 13's and dismissals and moving forward from there.....
What do you want to know? I thought it was answered for you. If your CH13 is DISMISSED, it's "game on" -- everything comes back into play. Lawsuits, garnishments, liens, etc. Translation: you no longer have protection from your creditors, and they have the same rights and remedies that they had BEFORE you filed. Your credit history is the SAME as it was BEFORE the CH13 with one exception: an ADDITIONAL negative for the filing/dismissal of the CH13.
In addition, your creditors can probably tack on a bucket-load of fees and interest. You migh want to check out bankruptcyforum.com This is an excellent BK site. But, as already mentioned, batton down the hatches and get your bow to the wind. Some rough water is coming your way. Hopefully, you have your mortgage figured out and can refile when the appropriate time has passed. The danger now is that you may get judgments and liens, and these will be a mess to clean up after a new BK filing. I'm not trying to be derogatory here, but did your house mean that much to you?
Follow up here. I considered the BK 13 option, but I also considered the consequences of losing control of all disposable income for 5 years. I found this site and realized that if you are no asset (other than wages), there is a great deal you can do before you ever declare BK. While my financial future is still unclear, I at least realize that I can work with OC's and CA's. So, start talking to them! If everyone will work with me, i can pay off my debts in the same five years a BK 13 plan would require. The difference is that in a BK 13 I might only pay 50 - 80% unsecured. Either way, my credit will be ruined for some time. There is a lot of discussion out there that folks who would have filed for a 13 under the old law are now thinking twice and discovering living with five years of wage garnishments at least gives them control over what remains in their check. If you have no assets to protect then filing a no asset 13 might not be any better than living with or dealing with OC's and CA's. In a 13, you are at the mercy of the trustee. In addition, you have to pay a fixed percentage of your pay-back plan to the trustee. Start speaking to those who will work with you. It takes dedication and time, but you might get results.
My dissmissed in 12/02 and 1/03 respectively. I was on medical disability had a 4 month hospital stay etc... as a single parent, not trying to play the violins here I was told that the filing of a 13 would "stop the clock" so to speak, while I looked into taking 401k loan, getting other loans, working out arrangements with the bank etc... so I should have made better decisions, heard stories from numerous people how they "recovered" then always here well if I was gonna file anything, it should have been a 7 or whatver. My point is not that I'm "scared" that my assets will get taken away. I sold my house on my terms a little over 2yrs after my last dismissal and had negotiated better terms etc.. I had so much Medical debt over 100k, so I figured I'd sell the house, put money in saving, pay the bills that went to crap during my illness and unemployment, live in a tiny apt with no yard for my kid etc.. just to get back on my feet. I'm not asking for instructions on how to keep from creditors, just looking for others experiences on how they survived.. that is all... I guess this is not the place for that.
