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When you get a letter of dismissal of your chapter 13 bankruptcy, will they take your stuff under the plan..

Bartlett, IL |

i.e. house, S.U.V. motorcycle?

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Attorney answers 3

Posted

When a Chapter 13 bankruptcy is dismissed you and your creditors are returned to the same position that you were in before the bankruptcy was filed.

As a result, any legal rights that your creditors had available to them before the bankruptcy are now available to them again. This is because the stay of collection proceedings that you received when you filed your bankruptcy has now ended.

Your creditors can start whatever proceedings that they legally can to collect on the debts you owe them. If the creditor's rights include the right to seize your assets then they are free to start the seizure process once the dismissal occurs.

I should point out that what actions a creditor might take after the dismissal of a Chapter 13 bankruptcy will also depend upon how long you were in the Chapter 13 bankruptcy and how much, if anything, the creditor was paid during the Chapter 13 Plan.

It is possible that some of your creditors may have received some or all of what was owed to them, in which case they would have no reason or little reason to start collection proceedings.

Only you, with the help of your attorney are in a position to know what has been paid to your creditors and how much is still owed by your creditors.

If you have received notice that your bankruptcy has been dismissed you will want to speak with your attorney to see what options are available to you.

Posted

Generally, you and the creditors are in the same position as before filing with respect to enforcement rights. The balances due may have changed based on the payments or lack of payments to certain creditors in the bankruptcy.

The scope of this space does not afford an opportunity to assess the situation and advise you. I recommend you assemble for legal consultation: (1) your income information for February through August, including wages and unemployment during that period; (2) all your bills (several months' copies neatly assembled); (3) last four years' tax returns; (4) a credit report; and (5) other information that may apply, such as copies of lawsuits. Set up an appointment at your earliest convenience to afford the most opportunity in which to be advised about your best course.

Posted

If your chapter 13 bankruptcy is dismissed nobody will "necesarily" take your stuff under the plan. However if you were behind on your SUV or motorcylce at the time the case was filed and they were not paid current or paid off, they may come and reposses the items since you are no longer protected by the bankruptcy.
The house may also go into foreclosure if you were behind on the payments at the time that you filed.

The content found here is not legal advice and is purely for informational purposes. The information contained herein is not a substitute for the advice of an attorney A blog does not create an attorney-client relationship. If you are interested in obtaining information about bankruptcy, you are encouraged to call our law firm at 866-790-8601 or visit our website at www.changandcarlin.com

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