QUESTION
Will I receive any money I paid into the chapter 13 bankruptcy account?
Asked on Nov 28th, 2011 on Bankruptcy - Indiana
More details to this question:
I filed Chapter 13 Bankruptcy in 2008. It ends in 2013. All of my creditors have been paid except for my mortgage (including $1700 in arrears), my 2nd mortgage, and my car. It is possible for me to be removed from bankruptcy status and pay those bills previously mentioned on my own without the creditors which have NOT been paid coming after me for anything? I'm losing money by paying the trustee to manage my account. I just want to know how I can take over paying my bills without the trustee and without any retribution from those creditors I already paid off. If I switch to a Chapter 7 Bankruptcy at this point, will I receive any money I paid into the Chapter 13 account?
6 ANSWERS
Bankruptcy Attorney serving Livonia, MI
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Charles J. Schneider, P.C.
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No. Not possible.
Answered on Jun 02nd, 2013 at 9:16 PM
3 Awards
You will not receive any money from your Bankruptcy if you convert or dismiss your case other than what monies in the last check you sent the Trustee remain to be distributed. Sit down with an attorney to discuss your issue. This is unlikely to be a wise course of action.
Answered on Dec 01st, 2011 at 9:26 AM
1 Award
Do not switch. Just finish it off and get your discharge. You cannot do what you want to do.
Answered on Dec 01st, 2011 at 8:57 AM
Glen Edward Ashman
Something is seriously wrong. Unsecured creditors are never paid before cars and homes.
Answered on Dec 01st, 2011 at 8:41 AM
Bankruptcy Attorney serving Concord, CA
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William Rubendall Attorney at Law
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You can dismiss your chapter 13 at any time. However, this means you will not receive a discharge of the debts that have been paid in the plan. You would still owe the unpaid balances. You could convert the case to chapter 7 to get a discharge. However, you would not receive a rebate of payments made by you in the chapter 13.
Answered on Dec 01st, 2011 at 8:36 AM
If you convert to Chapter 7 from 13, it is not likely that you would get a refund of any money, as it would be paid to scheduled creditors. Unless you paid 100% of your debt back through your Chapter 13, if you voluntarily or involuntarily leave the Chapter 13 (dismiss), creditors will be able to pursue you for the debt you didn't pay and the corresponding loss on compounding interests and fees.
Answered on Nov 30th, 2011 at 11:13 PM