With or Without Prejudice

[Granny]

When a case is dismissed for non-payment, is it with or without prejudice?

Due to the aggressive nature of one of our creditors, I am certain that they will be hot on our trail, to the tune of $36K+ as soon as there is an end to my case. Even if I completed my plan, they would most likely come after hubby since he was a co-debtor too. He would have to file a Ch 7 to get rid of them as I would bet they would sue and attempt to seize our bank account after I am done, no matter how my case ended. It is my understanding that even though I am in Texas, they can still attach our bank account which could put us into a tail spin.

My best bet is to get my case dismissed without prejudice and to file a joint Ch 7 as soon as I can get past the means test. If I convert mine to a Ch 7 and then he files a Ch 7, we would be paying twice.

How do I get it to the status of without prejudice?

Does anyone know how long it takes for a case to be dismissed after the first payment is missed?

[woeisme]

Can't answer your questions, hope someone more knowledgeable comes along, but my suggestion for the bank account issue is to go to a cash basis if possible. I know some jobs require direct deposit, but if yours doesn't, it might be worth it to wait out the period before the CH 7 with little to nothing in the bank so the aggressive creditor has nothing to seize. And if wages are exempt, and you can prove the $ in the account is from wages, would you be able to stop them that way? Best of luck.

[HHM]

Generally, a case dismissed for non-payment will be WITHOUT prejudice.

In the BK context, prejudice is not the right term when it comes to dismissing a BK. The BK equivalent to dismissal with prejudice is denial of discharge. Denial of discharge requires pretty serious fraud, other than that, a BK simply gets dismissed.

There are 2 easy ways to get a chapter 13 dismissed, submit a voluntary dismissal, or stop making payments.

[Granny]

Thanks for the clarification

[spearmint]

How can a case get dismissed for non payment when the trustee makes the payments?

[HHM]

How can a case get dismissed for non payment when the trustee makes the payments?

When the debtor does not pay the trustee.

[spearmint]

Okay, but I thought the payments to the trustee were automotically taken out of one's paycheck without the debtor even seeing it.

[justbroke]

Okay, but I thought the payments to the trustee were automotically taken out of one's paycheck without the debtor even seeing it.

This varies by District. However, in my district, you don't have to submit a Wage Deduction Order. I submitted one, so that the money goes directly to the Trustee.

[spearmint]

Thanks. I didn't know that.

[Granny]

I am a stay a home grandma raising the grandkids, so I don't have a regular income other than a itty bitty home based business, so I pay the trustee directly.

[IBroke]

Okay, but I thought the payments to the trustee were automotically taken out of one's paycheck without the debtor even seeing it.

If you are self-employed, you don't get a paycheck.
That's why that needn't always be the case because it's formally impossible..

[Granny]

And last time I checked, there's no paycheck for raising grandkids...but there should be....I just get penalized with a reduction in future social security benefits because I am no longer working. Sometimes it sucks doing the right thing.

[EricaCallaha]

Yes it does...but good for you for taking on your grandkids. They are truly blessed to have you!!!