If you in the 2nd year of a 5 year Chapter 13 bankruptcy and the court payments cannot be made will it be dismissed or reopened?
Typically, if a debtor stops making Plan payments, the Chapter 13 Trustee will eventually file a Motion to Dismiss the case. The debtor will then have a short time in which to file an Objection to the dismissal if the debtor thinks he or she can catch payments up. If the debtor does not timely file an Objection, or if the debtor files an Objection but still can't get caught up, the Court will usually grant the Trustee's motion and dismiss the case. If a debtor knows in advance that he or she can't make payments, he or she can contact their attorney and see if they can get Plan payments suspended for a short time (maybe one to three months), or lower the amount of the payments by re-structuring the Plan. In some cases, conversion to Chapter 7 is possible. These options are complicated and should be discussed with an attorney. Please note that nothing in this posting or in any other posting constitutes legal advice; this is simply my understanding of the facts, which I do not warrant, and I am not suggesting any course of action or inaction to any person
If you voluntarily have a chapter 13 bankruptcy dismissed will your creditors be notified of the dismissal?
Can you refile chapter 13 bankruptcy under the new bankruptcy law after your case was dismissed to avoid foreclosure?
If the Court dismissed your Chapter 13 for failure to make the plan payments, it is as if you never filed for bankruptcy. However, there is one important exception. If you refile for bankruptcy within one year of the dismissal, the automatic stay will expire within 30 days unless you file a motion to extend the stay and prove to the satisfaction of the Court that the current filing is in good faith.
Is there anything you can do if your chapter 13 was dismissed after confirmation for failure to make payments on time?
Many people are unable to maintain the rigid repayment plans (and strict budget) that go along with Chapter 13 bankruptcy. One option is to switch to Chapter 7 bankruptcy. This can be done (one time) without court approval, although if you ever wish to switch back to Chapter 13 then the court will be involved. Before switching I would recommend looking at the different characteristics of each type of bankruptcy.