can you back out after you start the process?

[paradiddle]

Can you back out at any given point once you start down the CH 13 road?

(I have a good reason for asking).

[walkthaplank]

You can dismiss your case at any time after filing, however the damage to your credit is already done. Also, any collection process will return with new vigor and recalculating interest and penalties back to the filing date. Think long and hard before you dismiss your case.

[Flamingo]

If you back out before you file you will just be dealing with the same situation you have at that time as it won't change. If you file and then decide you want to back out, you will have a chapter 13 on your credit reports for 7 years from the date of filing and as the previous poster mentioned, everything will revert back to what it was prior to filing.

Filng BK is scarey. However, if you have no other way out of your debt situiatoin (i.e., rich family member who can help, hitting the lottery, etc., etc.), you probably have no other choice. Do your homework, express your fears to your attorney and don't hide anything; Chapter 13 is a tough road to handle but, believe me, most folks make it through and it is well worth it.

[bkstuff]

backing out

I was actually thinking about this too. If we end up "filing" ch 13...and plan on stripping the 2nd mortgage. Is there a way to try to "strip" the 2nd mortgage and then file, just for some insane reason the "strip" does not go through?

[LimpDisc]

Can you back out at any given point once you start down the CH 13 road?

(I have a good reason for asking).

Powerball winner?

[justbroke]

While it is not usually the case, you are not guaranteed that you can voluntarily dismiss your Chapter 13. The Trustee could move to convert it to a Chapter 7. I can't speculate on which conditions would cause the Trustee to move to convert to a Chapter 7, but it has happened in limited cases.

However, the overwhelming majority of voluntary Chapter 13 dismissals happen without any issues. They are dismissed with prejudice, meaning you can't file another case under Title 11 for 180 days after the dismissal.

[tigergem]

While it is not usually the case, you are not guaranteed that you can voluntarily dismiss your Chapter 13. The Trustee could move to convert it to a Chapter 7. I can't speculate on which conditions would cause the Trustee to move to convert to a Chapter 7, but it has happened in limited cases.

However, the overwhelming majority of voluntary Chapter 13 dismissals happen without any issues. They are dismissed with prejudice, meaning you can't file another case under Title 11 for 180 days after the dismissal.

I can't say it enough. CHECK LOCAL RULES. READ AND REREAD THEM.

Because maybe where you are expected to file the proposed order that you want to have with any motion, then I guess you could write it so it is dismissed without prejudice. I love my district, by the way. Have I mentioned that before? Not that I am thinking of requesting a dismissal. I'm just saying...

[justbroke]

Because maybe where you are expected to file the proposed order that you want to have with any motion, then I guess you could write it so it is dismissed without prejudice.

This would be up to the Judge when they sign the order. They have been known to cross out sections of a proposed order before. It is a point of fact that if you dismiss a Chapter 13 (or Chapter 7) with a Motion for Relief from Stay (MFRS) pending, that even if you are dismissed without prejudice... refiling will cause you issues and the MFRS, by Statute not by local rule, will stick. In other words, it's to prevent serial filings to stave off foreclosure/repossession.

In some Districts, the Order doesn't even read "with prejudice" as it is implied. For most people, this doesn't matter because they are dismissing to be done with Bankruptcy, while others are doing it solely to refile! It is the latter that concerns the Court and to whom the rule is aimed at.

Yes, you can get it dismissed without prejudice, but usually you have a good reason for that. I've been in Court when the Judge has granted such and the debtor attorney indicated that they were refiling that same day. Some of this is up to the Trustee and under what conditions you asked for the voluntary dismissal.

[tigergem]

I'm sorry I would have to object to random scribblings on my beautiful proposed orders. I mean if I have to put the work in to telling the judge what to do... because he can dismiss a motion if you do NOT include a proposed order... then he should not go drawing lines on it. (tongue in cheek, btw.)

[catleg]

I would love to be forced to convert to a chapter 7.

I guess if you blunder into your case with a bunch of assets it could happen.

For most of us, this is a non-issue since there's no assets except future income.

[justbroke]

I'm sorry I would have to object to random scribblings on my beautiful proposed orders. I mean if I have to put the work in to telling the judge what to do... because he can dismiss a motion if you do NOT include a proposed order... then he should not go drawing lines on it. (tongue in cheek, btw.)

I've only had the Judge once cross out one paragraph, renumber the others, and add a couple of words. Other than that... I haven't been edited!

I should have said it before, but thanks for bringing up the proposed order thing. Yes, if you write a proposed order, always try your best to get what you want and include the words "without prejudice" on any order granintg dismissal.

I would love to be forced to convert to a chapter 7. I guess if you blunder into your case with a bunch of assets it could happen.

From the cases that I have reviewed, they were asset cases and the Chapter 13 Trustee was trying to "protect" the unsecured creditors so that they'd get something.

[paradiddle]

backing out

Powerball winner?

Insurance settlement

I guess I was looking just at the timelines of Backing out and irreverseable damage.

The Ins. settlement is not a done deal but I'm looking at $165k. I owe $78K on CC's from failed business and medical leave. Stopped paying about 90 days ago.

Plan A:If I get $$$ I would like to settle CC debt pennies on dollar and get on with my life.
Plan B: hold out as long as I can and then file Ch13. It may come down to the wire if I end up in a garnishment situation and I am forced to do something.

I hear what you are all saying but I have been down the road before. House payments with spouse are current, we own our cars and no other debt. I am the only one with the CC's deliquent. we are both working good jobs etc.

I did not know CH13 would still appear on credit reports before final.

[LimpDisc]

Hopefully you'll get your settlement and everything will work out for your family.