What do you think happens? The creditors have the money. They have to apply it to your debt balance, which will increase dramatically because they get to charge you for all the late fees, penalties and interest, not to mention any legal fees, that they could not add while you were in bankruptcy. I hope the dismissal was worth it.
They are considered "lost", you will not get that money back, but your debt to the individual creditors will be reduced by what they had received in 13 BK.
Assuming its a chapter 13 bk, if you dont make your plan payments the court will dismiss your bk- allowing creditors to resume collection efforts
2 factors: 1. Are you current on your payments? - if you are not current on your payments the creditor will most certainly repossess your vehicle. however you will not be liable for any deficiency amount. 2. Who is the creditor? - Most creditors will gladly continue to accept payments on the vehicle and not repossess it. however some creditors such as Ford Motor company will repossess regardless of whether or not you are current.
It depends on whether or not you qualify for Chapter 7 or Chapter 13. For Chapter 13, you will slowly have to pay your creditors back over time. For Chapter 7, you have to assign a value to everything that you own. The creditors will then determine whether or not these items will be included in the bankruptcy in a hearing.
If a Chapter 128 case has been dismissed, it typically means that the debt repayment plan was not completed according to the court-approved terms. As a result, the individual is no longer under the protection of Chapter 128 and creditors may resume collection efforts. It's important to seek legal advice to understand the implications and explore alternative options for managing debt.
If you are late on a chapter 13 payment you are at risk of having your case dsmissed. Please try to make payments on time and make payments up if you missed any due to a miscommunication.
When a business files for bankruptcy it basically means it can not repay the debts it owes to creditors. Generally a trustee will sell remaining assets and pay off creditors. The exact rules of what happens depends on what type of bankrupcty that is filed. In US for example there are Chapter 7, Chapter 13 etc.
If you are in a chapter 13, if you are no longer able to make plan payments, you must either convert to a chapter 7 or dismiss the 13.
The trustee will file a motion to dismiss to get your BK case thrown out.
If the court has already confirmed the chapter 13 plan then the money already paid is distributed to the creditors. Basically, since the case was not discharged, you still owe the debt, so you made payments towards the debt while in bankruptcy. If the plan was not yet confirmed by the court, the money is returned to the debtor by the trustee save for a small amount for the trustee's expenses (trustee would ask for this in his motion to dismiss). Money would not be distributed to creditors by the trustee until after the proposed chapter 13 plan is confirmed.
Chapter 13 bankruptcy is different than chapter 7 in that you will essentially be reorganizing your debt and coming up with a payment plan. The creditors meeting involves filing a plan with the bankruptcy court suggesting how you will repay your debt. Some debts must be repaid in full while others require only a percentage or nothing at all.
The debts are still valid and creditors can continue with collection procedures including, in most cases, a lawsuit.