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Can a chapter 13 bankruptcy case be reopened by debtor for nonpayment of plan payments pursuant to section 350(b)?

Fresno, CA |

I was told the answer is yes only if the case was closed as opposed to dismissed for nonpayment. The case has been dismissed for less than one month and a final trustee report has not been completed.

Attorney Answers 5

  1. If the trustee hasn't file the final report, I doubt that the case has been closed. What you are really looking for is a motion to set aside the dismissal. It is completely within the judge's discretion, but you didn't say why the case was dismissed and that would be important know if you want an idea of the likelihood of the judge vacating the dismissal.

    First, the firm is a debt relief agency according to the U.S. Bankruptcy Code. We help people file for bankruptcy. We also do other stuff and we do it well, but Congress wants me to post this notice. Second, nothing on this site is legal advice. You are not my client unless you enter into a written agreement signed by you and me.

  2. In addition to what Mr. Starrett has offered, let me suggest that your case for setting aside a dismissal based on non-payment will require some showing of changed circumstances that now makes payment possible. The law generally favors Plan completion, and judges are typically full of good will for the Debtor who persists through adversity, but not one who has failed to pay through laziness, disregard for court orders or any other manner of bad faith. It goes without saying, of course, that representation by capable bankruptcy counsel will strengthen your case even more.

    Best wishes for a favorable outcome, and please remember to designate a best answer.

    This answer is offered as a public service for general information only and may not be relied upon as legal advice.

  3. I agree more information is needed. The case will never just be "closed". There will be a dismissal first, then an order closing the case after the Trustee files the final report. Whether or not you will be able to reopen depends on the facts surrounding the dismissal, and the discretion of the Judge.

  4. Consider
    1. Send payment to Trustee
    2. File motion to reinstate,

  5. In So. District Texas, it would be took late. Check with a local lawyer asap. You might have to file a new case, with all of its requirements.

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