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Teresa Rigby · Nov 4, 2007, 10:47 PM

What are the chances of keeping your house, car etc, if you should decide no longer stay in a chapter 13 bankruptcy?

Teresa Rigby · Nov 4, 2007, 10:50 PM

If you come out from under the chapter 13 bankruptcy before it is paid in full... will you lose anything if you continue to make your payments? Our attorney will not give us a dismisal date so it is putting our house and car, etc. further behind schedule of making the payments. The creditors will not accept payment until the case is dismissed. What should we do?

txhutch07 · Nov 9, 2007, 02:21 PM

That's normal that the creditors wouldn't want to accept payment until after the dismissal as they could get in trouble with the trustee as it sounds that the trustee has been making your mortgage payment through the plan. The creditors should be able to tell you on their systems the status of the accounts even though they are receiving funds from the trustee. You need ask them specifically what would happen if your case should dismiss. What are their procedures in handling a dismissed chapter 13? Depending on the trustee he/she will disburse the funds on hand to the creditors or return to you. Be prepared that your unsecured creditors will able to pursue you once the case is dismissed unless you file a prior chapter 7 that discharged them. Any additional funds you have on hand put them aside as you will need those to reach an arrangement after the case is dismissed.

Did you file a motion to voluntarily to dismiss? There should be a hearing date set usually within 20-30days, 45days at the most of filing the motion.