You can voluntarily dismiss your 13 if you wish. Happens all the time. If you do not have an attorney you may be able to ask the court clerk if they have a form you can use. Once filed with the court in most cases the Judge will dismiss the case in a few days.Talk with your lawyer if you have one. They will know the local procedure in your court Hope it works out Good luck!
The above is for general educational purposes and is not legal advice for your particular situation. There is neither an expressed nor implied attorney/client relationship created by this information.
I rarely have filed a ch 13 case where the only goal is to keep a car because most persons cars are worth less than the debt owed.
We dont know if you have other debts too. But if no debt, there would be no reason to be in ch 13. IF other debt, the issue is can you afford it..and should you convert to a ch 7 or dismiss the ch 13 or modify the ch 13. Those are the issues than an experienced attorney will discuss with you . Discuss with yours and if none, employ one is my advice.
If you filed pro se, doing what I suggest may be difficult. If you have an attorney as him/her about filing a motion to compromise and substitute collateral. This is basically a motion for use of cash collateral. In many jurisdictions this is an option that you have.
If the insurance company pays off the vehicle, then your interest rate on the refinanced debt is going to be much higher than you were paying in the chapter 13. One of the factors that must be considered is the problems mentioned by Mr. Granvold. If you loan is a 910 claim and you were upside down on the loan by a large amount, the substitution of collateral is not something that you would want to do. If you were not upside down at all or only upside down by a small amount, the difference between the rate you will pay in chapter 13 versus the rate you will get on your knew loan will make a large difference in your payment.
If the best option is to have the insurance company pay the proceeds to the auto lender, you may be better served by converting your case to a chapter 7. You already have a bankruptcy on your credit record. Discharging the deficiency on the auto loan, if any and your other unsecured debt would be much better for your credit score than allowing the case to be dismissed. I have had clients with really bad credit scores, in the mid 400s before filing for relief under chapter 7 and after the entry of a discharge, their score was up to the mid 500s, sometimes even higher.
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.
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