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I am going to dismiss my Chapter 13 meeting with my creditors in two days because I found out that my dissability income is "...

I am going to dismiss my Chapter 13 meeting with my creditors in two days because I found out that my dissability income is "...

Q: What are the options after Chapter 13 dismissal?

After a Chapter 13 dismissal, you can explore several options. You may choose to file for Chapter 7 bankruptcy, negotiate directly with creditors, or create a new repayment plan. It's important to consult with a bankruptcy attorney to understand the best course of action based on your financial situation.

Q: Can you negotiate with creditors after Chapter 13 dismissal?

Yes, you can negotiate with creditors after a Chapter 13 dismissal. Since the bankruptcy protection is no longer in effect, creditors may be more willing to work with you on payment plans or settlements. However, be aware that they may also pursue legal action to collect debts.

Q: How is Chapter 13 refunded after dismissal?

If your Chapter 13 case is dismissed, any funds you paid into the plan may be refunded to you, depending on the circumstances. However, this is not guaranteed, and some funds might be retained by the trustee for administrative costs. It's advisable to consult your attorney for specifics regarding your case.

Q: How to qualify for Chapter 13 hardship discharge?

To qualify for a Chapter 13 hardship discharge, you must demonstrate that you cannot complete your repayment plan due to circumstances beyond your control, such as serious illness or loss of income. You must also show that you have made good faith efforts to comply with the plan. Legal advice is recommended for this process.

Q: What happens if your Chapter 13 case gets dismissed?

If your Chapter 13 case is dismissed, you will lose the protections provided by bankruptcy. Creditors can resume collection activities, and you may have to deal with any outstanding debts. Additionally, the bankruptcy filing will remain on your credit report, affecting your credit score.

Full question:

I am going to dismiss my Chapter 13 meeting with my creditors in two days because I found out that my dissability income is "judgement proof. Even though I have chosen to just let the account go delinquent and I am not pursuing bancruptcy anymore is there a way to have it not show that I filed for bancruptcy. Will my credit report still show that I filled bankruptcy even though I change my mind and decided to cancel and not go through with it even though it was already filed electronically? Is there anything I can do to have that removed being that I decided to not go through with it?

Category: Bankruptcy
Date: 04/07/2025
State: California

Answer:

You may be able to remove a bankruptcy mark if it is not reported accurately. A Chapter 7 stays on your credit report for 10 years, and a Chapter 13 stays on your credit report for 7 years, both from the date the petition is FILED, so whether or not it is dismissed does not affect this.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

What does it mean when a Chapter 13 case is dismissed?

When a Chapter 13 case is dismissed, it means the bankruptcy court has terminated the case before completion. This can happen for various reasons, such as failure to make payments or not following court orders. A dismissal does not erase the bankruptcy filing from your credit report, and it may still affect your credit score.