Chapter 7 After A Dismissed Chapter 13

[kornellred]

I was thinking of taking a withdrawal from my 401K (I am over 59 1/2 yrs of age so there is no tax penalty) and paying off the balance of my car loan, which I pay outside of my Chapter 13 plan. That will free up almost $400 per month. I suspect that the Chapter 13 trustee will have something to say about that. If he finds out, that is....

If he does find out, and demands a modification of the plan payments, I would be inclined to ignore his directives, which would lead to dismissal.

Concurrently, with this diabolical scheme hatching in my brain: I am facing my 2nd lumbar surgery, which is going to leave me disabled to the point where I can no longer earn an income anywhere near what I am earning now. I have long-term disability insurance, and the payout will be just enough to get me below the state of New Jersey's median income figure for a single member household. I would qualify for a Chapter 7 filing without presumption of abuse.

I guess the bottom-line question is - can I file Chapter 7 after a Chapter 13 dismissal?

[DebtEnder]

You can, but at the same time if you do become disabled you could simply convert from a 13 to a 7. If dismissed depending on how it is dismissed, you still might have a 180 day period before you can refile.