QUESTION
What happens if my chapter 13 bankruptcy is dismissed?
Asked on Jul 03rd, 2012 on Bankruptcy - Michigan
More details to this question:
We failed to pay our taxes to the trustee. We ended up using it to pay bills. I recieved a letter saying that we had to pay by July 1st on June 30th. Is there any way we can make a payment plan to the trustee or refile?
18 ANSWERS
Daniel James Wilson
Contact the trustee and make arrangements to catch up your plan payments.
Answered on Jul 24th, 2012 at 12:41 PM
If your Chp13 is dismissed, the automatic stay preventing your creditors from collection will be lifted. They can resume collection efforts, obtain judgments and proceed to garnish your wages/bank, repossess or foreclose on property. Depending on where you are in your plan (timeline) you may be able to request a modification of your plan and propose a payment plan to the trustee. Your Chp13 plan can be extended upto but not beyond 60 months. Howeve if there is not enough time left on your plan, this may not be feasible. You may be able to refile your case.
Answered on Jul 18th, 2012 at 12:36 PM
If it is dismissed, then you are basically back at square one.
Answered on Jul 16th, 2012 at 1:24 PM
Family Attorney serving Hurst, TX
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Law Office of Eric A. Maskell
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If your case is dismissed you have the option to refile. It may require an additional hearing to extend the automatic stay and you would start your case over from the beginning but you can refile. However, the trustees are usually understanding regarding tax returns and you or your attorney may file a response to the motion to dismiss and request a payment plan and explain the circumstances to both the judge and trustee.
Answered on Jul 16th, 2012 at 1:19 PM
Glen Edward Ashman
Your post is evidence of why pro se cases are such a bad idea. If you had a lawyer and could have shown a need to retain refunds, you might have gotten permission in advance. As to whether you can (or should refile) you NEED to now do what you didn't do - get a lawyer - and do it before that July 1 deadline!
Answered on Jul 16th, 2012 at 1:01 PM
Bankruptcy Attorney serving Buford, GA
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Kenneth A. Parker, PC
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It may be possible for you to keep the tax return BUT it has to be done though the Bankruptcy Court process. Usually, your attorney would file a Motion to Retain Tax Refund. In the Motion, you need to state what the refund will be used for, such as unexpected bills. Talk with your bankruptcy attorney as soon as possible.
Answered on Jul 16th, 2012 at 12:59 PM
Commercial Bankruptcy Attorney serving Davie, FL
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Law Office of Jeffrey Solomon
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There are procedures to modify a chapter 13 plan. I assume you are using an attorney in the chapter 13. You need to consult with the attorney right away.
Answered on Jul 16th, 2012 at 12:31 PM
Criminal Law Attorney serving Fremont, CA
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Steven J. Alpers, A Professional Corporation
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You could try a motion to re-open your bankruptcy if you can pay the taxes now or you could refile.
Answered on Jul 16th, 2012 at 11:15 AM
Bankruptcy Attorney serving Atlanta, GA
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Saedi Law Group, LLC
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You may want to speak to your attorney about filing a motion to retain tax refund to excuse the fact that you used the money. Your only other choices are to repay that money to the trustee or let the case get dismissed and refile.
Answered on Jul 16th, 2012 at 11:15 AM
Criminal Defense Attorney serving Deltona, FL
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R. Jason de Groot, P.A.
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You would have to actually speak with the trustee about the letter and making payments. You need an attorney to do a bankruptcy because of things like this.
Answered on Jul 16th, 2012 at 10:33 AM
Criminal Defense Attorney serving Calabasas, CA
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Law Office of Bernal P. Ojeda
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Assuming its the first one you have filed you can refile. However, the Court could put a bar from refiling for 6 months. That is you could be precludued from filing another for 6 months. If plan payments are to high you can file a motion to modify or suspend plan payments temporarily. Call trustee to see if will work with you that have all the power.
Answered on Jul 16th, 2012 at 10:32 AM
If you fail to make your plan payments on time, the trustee is going to act to dismiss your case, pretty much that simple. Call your lawyer, if you have one and if not, call the trustee's office to try to make arrangements. No matter who you call, the first question is going to be, "when can you catch up". So figure that out BEFORE you make a phone call. Remember that a new payment will come due every 25th of the month until the cows come home, so you have to make those payments, too or you will be right back in the soup. You may need to look at a different plan payment, if that is possible, because the reality may very well be that you can't afford your chapter 13 plan. Before you file is always the best time to figure this out, but now the house is on fire and you have to choose which part of the house gets the hose put on it first. You may not be able to do everything you want to do. You may need to set priorities and when you do that, you may discover that the 13 doesn't help you meet them.
Answered on Jul 16th, 2012 at 10:30 AM
Immigration Attorney serving Arlington, TX
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Law Office of Pho Ethan Tran, PLLC
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You will need to contact the trustee to see if you can work out a plan with them. Otherwise, if your chapter 13 case is dismissed for failure to make timely payments, you can refile your petition at a later time.
Answered on Jul 16th, 2012 at 10:27 AM
If you Plan required you to pay over your tax refunds to the trustee and you failed to do so you violated a material term of your Plan and your case may be dismissed. You need to consult with an attorney about this immediately.
Answered on Jul 16th, 2012 at 10:26 AM
Domestic Relations Attorney serving Huntsville, AL
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Ferguson & Ferguson
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Contact your attorney's office and have them inquire with the trustee's office. You may not be able to refile if you went directly against something ordered in your present bankruptcy.
Answered on Jul 16th, 2012 at 9:00 AM
Bankruptcy Attorney serving Grand Rapids, MI
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David Andersen & Associates, PC
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Talk to your attorney. You may be able to resolve the issue by filing a motion with court.
Answered on Jul 16th, 2012 at 8:57 AM
If the bankruptcy is dismissed, you will need to re-file if you want to continue in bankruptcy.
Answered on Jul 16th, 2012 at 8:56 AM
Bankruptcy Law Attorney serving Huntington Woods, MI
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Austin Hirschhorn, P.C.
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I assume that you used your tax refund to pay bills. If there was an order in the Chapter 13 case requiring you to pay your tax refund to the Chapter 13 Trustee and you spent the money before you got the letter, your attorney should contact the Trustee and work out a plan to pay the money that you were required to turn over to the Trustee. It doesn't make any sense to me that you received a letter on June 30th requiring you to make a payment on July 1st. If the case gets dismissed, you can refile if this was not something that was calculated to avoid paying the Trustee. You may have to amend the plan that was filed or get some other relief from the Chapter 13 Trustee or the Bankruptcy Court. Without knowing all of the facts, it is difficult to give you the best advice regarding the problem.
Answered on Jul 05th, 2012 at 10:37 AM