As a Chapter 13 debtor, you are free to voluntarily dismiss my Chapter 13 bankruptcy at any time and no longer must adhere to a repayment plan. Unfortunately, your creditors could regain their ability to collect their debts as you resume paying under normal terms – including repossessing and selling any property that had been filed as part of bankruptcy proceedings or repossessing assets that they were legally due before filing bankruptcy plus any payments you’ve already made during this case.

Voluntarily Dismiss my Chapter 13 bankruptcy

Chapter 13 bankruptcy allows you to reorganize all your debts through monthly payment plans established after declaring Chapter 13. This way you’re able to pay creditors over time with less interest charged from them.

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Consequences of Dismissal in Chapter 13 Bankruptcy

It is your right, but it is wise to know the effects of dismissing your Chapter 13 bankruptcy filing. Once the judge presiding over your case has signed off on an order of dismissal, your repayment plan will be null and void, and neither the Chapter 13 trustee nor the court have jurisdiction over tax refunds, income, or any other items listed within your repayment plan.

Once bankruptcy has been dismissed, however, you will no longer enjoy an “automatic stay”, which prevents creditors or collection agencies from contacting you directly. Your creditors could then attempt to repossess any property you own or foreclose upon collateral as repayment for debts owed before declaring bankruptcy minus payments made after dismissal – with potential additional debt and interest charges as well as damage to your credit rating as a result of failing your bankruptcy case being dismissed and leading to additional waiting periods to become eligible.

Why Would You Wish to Dismiss Your Chapter 13 Bankruptcy? 

There can be various reasons for wanting to voluntarily dismiss my Chapter 13 bankruptcy case, such as earning more income since bankruptcy filing must go directly toward creditors; as this might require negotiations to resolve debt via negotiations it might be in your best interests to cancel or close down this chapter of bankruptcy proceedings.

If your payments become difficult to manage and you find that they exceed what is owed to the court, Chapter 13 bankruptcy might also be worth reconsidering. When paying bills like mortgage or utilities late may add more costs than originally owed – even after filing.

Voluntarily Dismiss my Chapter 13 bankruptcy

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How to Request a Voluntary Dismissal in Chapter 13 Bankruptcy?

Filing for voluntary dismissal in a Chapter 13 bankruptcy should be fairly easy and will involve sending your trustee a notice with case information, your signature, and an explanation as to your decision to dismiss your Chapter 13. Deliver your letter personally, or send it directly through postal or electronic delivery services.

Dismiss an employee without providing an explanation or justifying your decision. Avoid wasting time on unnecessary explanations.

Your Chapter 13 trustee will file a motion for dismissal to formalize it and stop deducting funds from your paychecks, signaling its end.

Can You File After Dismissing Chapter 13 Bankruptcy? 

Yes. If you decide to dismiss your Chapter 13 bankruptcy voluntarily, filing another one within one year should grant an automatic stay that prevents creditors from contacting you during those 30 days. After this point, you’ll need to submit a motion to the court requesting an extension demonstrating how circumstances have altered as a way to show they won’t impede the completion of a new case and ensure your motion succeeds.

Once again, filing Chapter 13 bankruptcy within one year after having opened more than two cases can be more complex and time-consuming than expected. An automatic stay may not automatically apply in such a circumstance unless circumstances have significantly changed, making completion possible in your new case. To secure one successfully and achieve auto 

When your creditor receives relief from the automatic stay, six months must elapse before you can bring any legal actions or file new suits against them.  

What Are Other Options After the Voluntary Dismissal of My Chapter 13 Bankruptcy Case?

Once you voluntarily dismiss your Chapter 13 case, there may still be options open to you to resolve the debt. If you decide to voluntarily dismiss my Chapter 13 bankruptcy, depending on your financial condition and negotiating ability with creditors, paying all or some debt off may be feasible, or negotiation with them may help facilitate payment plans allowing less payment and perhaps preventing future filing for bankruptcy altogether.

Bottom Line!

Are you thinking about dismissing your Chapter 13 Bankruptcy? 

Before making this critical decision, you must explore its consequences and explore options available to you. We are here to provide support should payment difficulties or debt be an issue; don’t hesitate to get in touch! We can assist.

Contact Bruner Wright PA right now for personalized and expert assistance on navigating the complexities of Chapter 13 bankruptcy. 

Let us guide your decisions so you make informed choices to find a path toward financial freedom – don’t put off starting down this path; start now!

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