I want to file for dismissal of my chapter 13. I have two cars that are payed off through the plan that i am in. My pink slips for my cars are coming through the mail. Will dismissal of my chapter 13 affect the title ownership of my cars?
The filing of a bankruptcy petition will appear in the "Public Records" section of your credit report even if you file a motion to dismiss your case and thus do not receive a discharge.
A dismissal could affect title ownership of the vehicles. If, for example, you utilized the "cram down" provisions of chapter 13 and paid the secured value of the vehicle but not the entire loan, then the unsecured portion is not forgiven until you complete your case and earn a bankruptcy discharge. It may be, as you suggest, that the creditor will send you the pink slips once the secured claim is paid in full notwithstanding no discharge has been entered. However, I have represented a Debtor in a similar situation where the creditor came back to challenge the release of the pink slip as ministerial error and forced my client to expend additional time and energy fighting the creditor. Ultimately in that case, as so often happens in bankruptcy, a settlement was reached.
If the secured claim attached to the two vehicles was in fact paid in full then you should be able to avoid any unpleasantries notwithstanding the failure to complete your case. Of course, you need to be aware of the vehicle exemption limit in your state as you now may have non-exempt equity which could be attached by other aggressive creditors whose debts were not discharged.
Yes, it will show on your credit. More importantly, the question usually asked by potential creditors is "Have you ever filed for bankruptcy?" to which you would have to answer Yes if you were answering honestly and to answer dishonestly would be a crime.....
Dismissal is different than discharge. Be careful, you are almost home. If you complete the PLAN you will get a discharge of all remaining unsecured debt, but if you dismiss the C13, you will still owe the balance of the debt to the unsecureds. Your credit will report a C13 for 7 years after the date of filing; a C7 is reported for 10 years.
A dismissal of C13 will not effect the title ownership of the cars that you have paid off through the plan. Did you file pro se? if not, call your attorney and verify your status and circumstances.
Without seeing the full file, use this as a guide but can not guarantee accuracy and results based on these facts alone......How's that for a CYA???
