QUESTION
Can I exit earlier from my chapter 13 without paying off? It is very difficult for us to be on top of our bills.
Asked on Sep 30th, 2012 on Bankruptcy - Texas
More details to this question:
Almost all my salary is going to the chapter 13. We are living only with my wife salary which is very low.
We have hired lawyers for ch. 13 so I am looking for another point of view.
I dont care if we loose our house now. I think we can lease a nice house for half of what we are paying for the ch. 13.
Sooner or later we are going to fall behind in all our bills again because almost everything is oing to th ch. 13. With my wife salary we are paying utilities, gas, insurance, food, medical exp. And now college tuitions...
What could happen if we ask the trustee to dismiss or cancel the ch. 13?
1 ANSWER
Bankruptcy Attorney serving Burbank, CA
Partner at
Law Office of Mark J. Markus
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As long as your case was filed in good faith, and you didn't commit any "bad acts" during the course of your case, you should be able to dismiss your chapter 13 case voluntarily at any time. If you do this, then your creditors will be able to seek to collect on their debts against whatever avenues they have under your state's laws (such as garnishment, levy, attachment, etc.).
Why not convert your case to Chapter 7 and get a discharge of debts? You don't state what debts you have, and you may not even be eligible for Chapter 7, but you should consult with a qualified bankruptcy attorney in your area to evaluate all your options.
Mark J. Markus, Attorney at LawCertified Bankruptcy Law Specialist--State Bar of California Board of Legal SpecializationHandling exclusively bankruptcy law cases in California since 1991.http://www.bklaw.com/bankruptcy blog: http://www.bklaw.com/bankruptcy-blog/Follow Me on Twitter: @bklawr
Answered on Oct 01st, 2012 at 3:51 PM