Options To Dismissal For Failed Chapter 13

31 Jul Options To Dismissal For Failed Chapter 13

In the previous articles in this series I discussed various options that are available to a debtor who is in a Chapter 13 Bankruptcy but who can no longer make his Plan payments.

Those options are:

  • A Hardship Discharge.
  • Modification of your Chapter 13 Plan to allow Suspension of payments for a period of time or to Extend the length of the Chapter 13 Plan to lower the monthly payments.
  • Dismissal of your Chapter 13 bankruptcy.

A final alternative to continuing to pay a Chapter 13 Plan is to convert your Chapter 13 bankruptcy to a Chapter 7 Bankruptcy.

Just like a debtor in a Chapter 13 bankruptcy has an absolute right to dismiss his bankruptcy, so does a debtor in a Chapter 13 bankruptcy have a right to convert his case to a Chapter 7 bankruptcy.

Often the only reason a Chapter 13 bankruptcy has been filed is to save a house from foreclosure. If the debtor has not been able to keep up the payments on the mortgage to his creditor and the creditor has gotten the Bankruptcy Court to lift the stay (so the creditor can go forward and sell the house) there may be no reason to continue with a Chapter 13 bankruptcy.

Under such circumstances it might make sense to convert the Chapter 13 bankruptcy to a Chapter 7 bankruptcy.

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I've been a consumer bankruptcy lawyer for nearly 25 years. Since that time I have helped many people resolve their financial problems. I have been practicing law since 1986 and I am licensed to practice in all state and federal courts in the State of Louisiana. Because I am a sole practitioner, you know that your debt matters are being handled by me personally. In addition to my work with consumers, I am also frequently asked to speak at local seminars on bankruptcy law. I am member of the following organizations: • Louisiana Bar Association • National Association of Consumer Bankruptcy Attorneys • Bankruptcy Law Network My office is located at: 3920 General DeGaulle Drive, New Orleans, LA 70114 Telephone: (504) 368-4101

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