Chapter 13 bankruptcy dismissed and upcoming repossession of vehicle?
5 attorney answers
You will not go to jail unless you are convicted of bankruptcy fraud. There's no indication of that in your question(s). As for the debts you should consider filing Chapter 7 to get rid of them. As for the car, if you can't pay the loan, it will be repossessed. Perhaps you should also consider why you couldn't make your Chapter 13 payments. Did you lose your job? Or were the payments too high relative to your income and other expenses? You may want to see if there was a problem with the calculations used to determine your Chapter 13 payments. Good luck!
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If you were represented by an attorney, then you need to meet with your attorney and go over all your concerns. If you filed pro se, then you need to take advantage of a free consultation with an experienced bankruptcy attorney.
You have a way out unless you file a chapter 7 within the last 8 years and received a discharge. You can file chapter 7 and discharge most, if not all of your debt. If you did not file a prior chapter 7 within 8 years prior to the filing of your chapter 13, you may have even a better option. You can file a motion to reopen your chapter 13 and convert it to chapter 7. This will mean that you will have only one bankruptcy on your credit record.
You really need to take the time to meet with an experienced bankruptcy attorney that handles chapter 7 and chapter 13 cases even if you think you need to file under chapter 7. Become educated on this issue, find out the advantages and disadvantages for filing under each chapter and use an attorney that can help you make the right decision for you. Most bankruptcy attorneys will meet with you at no charge for the initial appointment. You can use the Avvo "Find a Lawyer" link at the top of this page to search for an attorney.
Answers and comments provided are for general discussion only. My comments are not to be considered legal advice and they do not create an attorney-client relationship.
I concur with the recommendations of my distinguished colleagues. Unless you have committed Bankruptcy Fraud, you do not have to worry about going to jail. You are in the same situation as before the Chapter 13 Petition was filed. Depending on your financial situation, filing a Chapter 7 may make sense. Retain a Bankruptcy attorney, if you have not already done so. Good luck.
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Your post contains multiple questions; four , by my count.
First off, I can confidently state that having your case dismissed for failure to make plan payments is not a crime and does not by itself create grounds for your incarceration.
The claims that your creditors hold against you for unpaid debts, are civil in nature and though jail time is not amongst the list of typical consequence for failure to pay debt, there are other remedies available to those of your creditors who wish to pursue them.
As you stated, your questions are general in nature and therefore, I can only respond that "Generally speaking, " your creditor's have a right to go to court and sue you
for amounts allegedly owed. If they are successful. the Court will issue a "Judgement" against you, which is essentially an official document that conclusively states that you owe the alleged debt.
If one or more of your creditors obtains a judgment, you will be notified by the court and given a deadline for payment. In the event that debts remains unpaid after the passing of a deadline to pay a judgement, the creditor may then continue through the court system, using "supplementary process" to impose more aggressive collection tactics. As a result, it is possible that a creditor could eventually seek the seizure of your Buick, and/ or any other valuable assets that exist in your name. In some cases collection efforts can include attachment of bank accounts and /or wages being garnished.
If your car is seized, the creditor would typically sell it at auction and depending upon the amount of the sale proceeds in comparison to the amount of the debt, there may not be enough money to satisfy the entire debt. Under those circumstances, you could end up owing a "deficiency" judgment in an amount equal to the difference between the amount of the debt and the amount received for the car at auction.
Again, these answers are very general and subject to change dramatically depending upon the circumstance in your particular situation.
hope that you find the helpful.
Dismissal of a bankruptcy case puts you right back to where you were before you filed the case (except that a portion of some of your debts may have been paid through your plan payments). It doesn't change your creditors rights to sue you or take whatever collection actions are available under applicable state law.
No, you can't be sent to jail for dismissing a bankruptcy case.
Legal disclaimer: Mark J. Markus practices law in California only. The information is not, nor is it intended to be, legal advice. You should consult an attorney for individual advice regarding your own situation. Answering this question does not in any way constitute legal representation.