question about voluntary dismissal

[maddog2112]

Just a hypothetical as I`m always trying to learn more about the bk process. If i`m 2 years into a 13 and voluntarily dismiss, while I`m waiting 180 days to refile, what would happen? Would I have to obtain a new lawyer and give his name to the cc collectors when they start calling? Could I even do so? Could you string it out 180 days? Would the new filing date start the 10 year no credit clock again, or does that remain from the first filing? Can the junk debt buyers start adding a bunch of old interest fees immediately even if you retain a new lawyer? It would be nice if my lawyer could answer these questions, however once they`ve made their 3-4 grand on your 13 case, they act like they either don`t know you or don`t have time for you!

[rrockinggramma]

the 180 day bar date is only if the trustee believes you are gaming the system or have committed fraud. And if that happens, then you can be barred from filing EVER on any of those debts.

If you just miss payments, you can refile immediately. My experience is that it takes you at least 2 or 3 months to miss the payments, then about 6 weeks for the trustee to dismiss the case. To refile you have to really have a pretty good reason.

The creditors will begin calling about 1 month after dismissal. When I refied, I reflied about 1 week after the calls started coming. You can do it but it is a tight time line and you have to be geared up and ready.

and yes creditors will add all fees and penalities to you balance and you can change attorney's if you want but not required. Both the dismissed Bk and the new filing would be on your credit. With chapter 13, it is only 7 years from filing date on credit report.

[maddog2112]

Thanks rockin G, Did your new refile date start the 7 year clock again?

[rrockinggramma]

yes but since I refiled within 6 weeks, it all comes off the same year, so not a problem for me.

[maddog2112]

Just out of curiousity, did your creditors and or collection agency,junk debt buyers add on all kinds of old interest and penalties?

[justbroke]

I see that rrockinggramma is providing you with excellent care. As she wrote, what you don't want is your case to be dismissed with prejudice (the prejudicial part is what keeps you from filing for 180 days). If you voluntarily dismiss, you will also have to wait the 180 days, so you would need to think this through. Strategy may be that you allow the Trustee to dismiss over payments (without prejudice) and refile almost immediately. This resets just about everything (new 341 Meeting, new case number, etc).

If you can deal with the creditors for 180 days, at which time they can apply interest (retroactive!) and proceed with collection activities, then proceed. If they don't realize the stay was lifted, and you file before they do... too bad for them!

[rrockinggramma]

yes interest was added but no penalties or extra fees because once filed, only principal can be claimed anyway and all that stuff went away. A lot of my debt was medical and secured and not so much unsecured credit card debt. Because my credit was SOOOOOO bad I only had an orchard card and a 300.00 capital one card. What I had were deficiency balances from repo'd cars and medical stuff from my kids and myself and piddly stuff ( some utilities) But it completely reset the clock on everything. like justbrook said, new 341, new case number. The trustee did ask why we didn't make the payments and in my last filing, since it was a divorce and I went from joint to single filing, there were no questions ask whatsoever. I have 4 BK's on my credit report. All but one are due to come off in 2011. (a chapter 7 from 01, 2 dismissed and 1 completed chapter 13's from 04 and 05 (I guess the 05 comes off in Aug of 2012. Not that far away really)

[maddog2112]

If you voluntarily dismiss, can you immeadiately retain a lawyer, or retain a lawyer when collectors start calling and then somehow postpone actually filing for 6 months? I just don`t want to deal with all the old creditors calling me at home or work!

[justbroke]

If you voluntarily dismiss, can you immeadiately retain a lawyer, or retain a lawyer when collectors start calling and then somehow postpone actually filing for 6 months? I just don`t want to deal with all the old creditors calling me at home or work!

Nothing would stop you from retaining a lawyer immediately.