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Dismissing Chapter 13 Case?

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    Dismissing Chapter 13 Case?

    Circumstances change, and one's financial situation can change. I remember reading that there is an "exit strategy" to dismiss a Chapter 13 if the debtor so chooses. Does anyone know the procedure to dismiss a 13? Is it a Motion to the Court, with a CC to the Trustee and the Creditors?

    #2
    You can file a motion to voluntarily dismiss a Chapter 13, or stop making payments. If you have a Wage Deduction Order filed with one or more employers, then the "stop making payments" tactic will not work.

    Are you Pro Se? If you are Pro Se, then you need to make sure that you follow the bankruptcy procedure rules and the local rules. Generally speaking, Rule 1017 applies (may be modified by local rule) governs voluntary dismissals. I can't tell you if you need to serve the Motion on all creditors. You may want to call your clerk's office and ask a "procedural" question related to the requirements of service. I would suspect that at least the Chapter 13 Standing Trustee and the UST require service.

    This motion will not dismiss your case automatically since it will (likely) require a hearing.

    Some people like the strategy of stop making payments to the Trustee because that may buy you time. (Time before the Trustee files a motion, a hearing is scheduled, and the case finally dismissed.)
    Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
    Status: (Auto) Discharged and Closed! 5/10
    Visit My BKForum Blog: justbroke's Blog

    Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.

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      #3
      In the 9th Circuit, you have the absolute right to dismiss a Chapter 13:

      http://cdn.ca9.uscourts.gov/datastor...1/20-60043.pdf

      While you would want to check on local rules, the procedure would typically be to file a Motion to Dismiss and submit an Order approving the Motion to the judge at the same time. Judge will sign it within a day or so.

      Des.

      Comment


        #4
        CH13 debtors have the right to end their participation in the CH13 plan for any or no reason. The procedures required to do it vary between districts. Do you have an attorney? You should consult with a BK lawyer. You may be able to convert to a CH7 or modify your CH13 so you can stay on the plan and make smaller payments.

        In our case, we dismissed our Ch13 and re-filed Ch7 a few months later.

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          #5
          Thank you all for the valuable insight. :-)

          Comment

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