What happens to all the money paid in and paid to creditors in

[southerncomfort]

a Chapter 13 dismissal?

For example, my car has been paid off in the 13. If the 13 is dismissed now, surely the car is still completely paid off right?

How do the remianing unsecured creditors come back to get you after the dismissal....espeically if the accounts ahve been sold to the settlement corporations???

[HHM]

The purchasers of the account can come after you for any unpaid balance...realize, if your chapter 13 is dismissed, you DO NOT receive a discharge. The other issue all your creditors, or their successors in interest, can now come after you for ALL accumulated interest and fees.

With regard to the car...the answer depends on whether you did any sort of cram down or modification of the amount owed to the car finance company. If, through the chapter 13 plan, you paid the car finance company less than what they would have received had you paid them as normal, then all bets are off, and you are still liable for any unpaid balance.

Chapter 13 dismissals are really the worse of all possible outcomes, especially if you have been in the plan for a couple years, because you have thrown all this money into the plan, and once the chapter 13 is dismissed, you are practically back to square one. If possible, if a dismissal of a 13 is likely, you should look into converting to a chapter 7 (assuming you qualify).

[southerncomfort]

Thanks so much. My lawyer is filing a motion to reinstate. The trustee claims I was more than 60 days past due, which isn't the case. The lawyer said it would be reinstated although I would have my payments payroll deducted. I have paid over $70,000 in this plan with only a year to go. I will be sick if the motion to reinsate isn't granted!!!