Chapter 13/Notice of motion to dismiss chapter 13 case

[shirley]

Received a letter from the court to dismiss our chapter 13 case because we
skipped one month in payment due to other means that needed to be addressed. We have been paying now for 2 years and have never missed a payment. We also received a letter that all our secure debts have been paid back and now they are working on the unsecure debts. We are suppose to payback monthly payment for 5 years. The rest of the term is unsecured debts as in medical bill and credit cards. My question is "If we decide to let the courts dismiss our case what is the worst that could happen with the unsecur debts? I am a breast cancer Pt. and I have a 21 year old daughter still in collage living with me and my husbands hours at work have been cut back. Going back to court with our attorney can cost more money we don't have. Really hard times right now.

[forgotten]

The unsecureds can add on the past 2 years interest at the default rate and file lawsuits agianst you (and then of course all the actions trying to collect on the judgement - wage garnishment, lien attachment, etc).

You need to contact your attorney about getting your plan amended to account for the loss in income and to do something about the missed payment (you may be able to spread the missed payment over the remaining life of the plan).

[ccfriend]

I received a MTD a few months ago because I didn't hand the trustee my state tax refund. ( I thought it was only the Federal I had to submit) Anyway I went and spoke to the trustees office and my att. and they said just to pay the amount and the MTD would be pulled. I did and all is well.
If you do dismiss any of your unsecured creditors can come after you for payment (whatever the amount was you owed before BK plus all interest and fees that would accumulate for the two years you didn't pay them while you were in BK).
Maybe you would qualify for a ch 7 now and could convert it.
I believe if you do dismiss and then refile a ch your 5 years starts over.

[woeisme]

The attorney is paid to represent you throughout your CH 13, you shouldn't have to pay to have them file the necessary paperwork to clear this up. The bigger issue is that you may need to convert to CH 7. That may or may not cost $, but even if it does, will be less than your CH 13 payments and could get you free and clear of this debt so you can focus on your treatment. Best of luck to you fighting your battle with cancer, I really feel for you. Although if you anticipate a lot of medical bills, might want to hold off on pulling the CH 7 trigger for that reason.

[shirley]

Thanks, for all the info, I did call my attorney and he said it looks like i am just one payment behind and he knows others that are 4 and 5 months behind he does'nt know why I got this letter so soon. He said he would take care of it. Other people I have talked to owe credit care depts and settled with them without having to file backrupt.
But that was not the case with us. We ran up a very big hospital bill and from missed time from work we abused our credit cards. Let me tell you this, its hard having bad credit because my husband is a proud man and we always paid our bills, one bad moment in life (breast cancer) took so much from us. Where is our bail out. Our insurance paid very good after all the out of pocket expense. We were 10,000 dollars in dept with medical bill within 6 months because it was at the end of the year starting treatment, going into a new year, so our out of pocket expense started over. We have to pay pay pay and some other people get it handed to them because they can find a program or gov. asst. that they qualify for and don't have to pay a dime, and people like us are stuck forever. Just had to vent alittle. Thanks for all your support