If you have received a dismissal in your Chapter13 you should immediately be in touch with your bankruptcy lawyer to go over your options.
The dismissal mean you have not completed your Chapter 13 and the court has dismissed your case. You are almost back in the same situation as you were before you filed bankruptcy. You may actually be in a worse scenario.
There are also sorts of things that can happen as soon as you are dismissed so it is important to contact your lawyer immediately.
Dismissals happen in Chapter 13 for a number of reasons. The number one reason is failing to make the payments in a timely fashion. The case can also be dismissed for failure to complete within the 60 months or failure to follow a court order.
Once the case has been dismissed the automatic stay that was protecting the individuals assets and keeping the creditors from collecting is gone. Creditors can now turn off utility service, reposes cars, reinstate or continue foreclosure, garnish wages and begin to make the collections calls.
All hope is not lost. The individual maybe able to refile the Chapter 13 immediately and begin the process to protect their assets all over again. Many individual chapter13s go through a start and stop process. Some individuals may have to file more then once.
There are exceptions to the refiling or how soon you can refile. Sometimes the court order dismissing the case may contain a bar to refile for a period of time or as to a particular creditor. If there has been a relief from stay filed in the case this usually prevents a refiling for 180 days.
The refiled case maybe very similar to the case that got dismissed or the case maybe very different. This is where working with your lawyer is important. The payment maybe lower or larger. It maybe be timed to give up some assets that are secured. It may even be possible that a Chapter 7 would be in the individuals best interest. A review of the changed in circumstances is necessary
The dismissal letter is not the end of the world you need to get back into your bankruptcy lawyer to see what your options are.
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