Thinking of Dismissal

[Cindy]

We hae been in our BK for a year now, and it has been a struggle, every singel day, hour minute. We own our own business and as such the monies have been slow to sometimes none or barely there, considering what we have to pay out to the trusteee and of course house pmts.

My question is this......we are thinking Dismissal because that way we could get our home re finances and doinf such repay a lot of bills with that money, the way we are going now we are teeteing on losing home and business (well building we work out of, we are buying it and have no funds to meet mrtg.)

Is this somehting that has been done by anyone and what are we looking to happen?? All our debts were unsecured we are paying the bulk back to irs. Please any and all advice is needed here as this is a choice between losing home and business OR paying off after a re-fi, which we found out can be done only IF we are discharged or dismissed, and discharge is not in the near future at all.

[Minnymouth]

In your Chap 13 are you paying creditors back 100%?

If not, and you get a dismissal, you will owe them the 100% of what you originally did.

Do you have an attorney? What did he say about getting a dismissal? Sometimes a dismissal will not be granted?

[Cindy]

Re: Dismissal

Hi Minny,

No we are not paying back at 100%...the creditors (most all of them) were discharged, didnt file. A=What we are paying is IRS and trustee, thats it and o course house and car but therre not included in BK. We havne't talked to our Attorney about this yet he is less then helpful to be honest, as a lot do he wants nmoney before does anything. I do not know where to turn sure do not have any money for another attorney, we dont even have money for house pmts.

[Cindy]

Re: Dismissal

What we would like to do (if at all possible) is to get house re-financed, is there anyone out there that would do this in our situation, we have had no luck at all.

[Minnymouth]

Since IRS is a priority creditor they are paid before anyone else is.

Only thing now about a dismssal is if your case is dismissed then you go back to oweing the creditors all over again.... just like you hadn't claimed bankruptcy....

Shame you didn't work something out with IRS before you filed bankruptcy....

Then you could have filed a Chapter 7 probably, kept your home/vehicles, and had a payment plan with the IRS.....and then all the unsecured creditors would have been dismissed.

You need to check into doing a Chapter 7 now...... and see if doing it will serve your best interest....... instead of a Chapter 13.
But, Please, do not make a change until your talk to at least 2-3 difference attorneys about your situation.....

You don't want to mess up and loose a home, etc......

Keep me posted,

[Minnymouth]

You usually cannot get a home refinanced for at least a year into bankruptcy and some won't touch you until out of bankruptcy....and discharged.

Do you have a lot of equity in your home??

[Cindy]

Re: Dismissal

We have only about 17,000.00 left to pay on our home it is worthapprox 70,000.00. What we owe the IRS is from abut 10 yrs ago (1995 taxes) all interest. I understand having to pay creditors as we were before but somehow it seems our only way out in order to keep our home at least, I have my own car, would hate to lose husbands but if it means keeping home.well you have to do what you have to do. We are thinking about htis seriously this weekend.

[Minnymouth]

Were you planning on using the equity in your home to pay the other creditors and IRS?

With that much equity, you shouldn't have a problem getting a home equity line of credit..

You really do need to discuss this with an attorney before you make a decision about it.