is voluntary dismissal a good option here

[wrenegade]

Filed Ch. 13 BK pro se two years ago to prevent foreclosure. Plan is 100 percent repayment. The mortgage arrears have been paid through bk and the house payment is up to date. Federal tax debt also has been paid through the plan already. All that is left is unsecured debt, mostly credit card and some bottom-feeder debt collectors. The monthly trustee payments are killing us and we have fallen a couple of months behind, trying to get that caught up. Since the mortgage is up to date and all that's left is unsecured, would it make sense to voluntarily dismiss the case at this stage?

[newbie2]

It wouldn't make sense to me to do that, and here is why: Interest on all the unsecured debt will go back to the date of filing and compound. Then, if you try and settle for a lower amount on the unsecured debt you'll be hit with 1099s for the deficiency balances -or- they will sell the remainder to more bottom feeders.

Since you are struggling so much have you thought about re-working your plan so it reflects current income & expenses and modifying your plan instead of dismissing it?

[frogger]

Since you are struggling so much have you thought about re-working your plan so it reflects current income & expenses and modifying your plan instead of dismissing it?

That's the ticket! Plans get re-worked all the time.

[justbroke]

Definitely look at a plan modification. What has happened behind the scenes, over the past two years, is that those unsecured creditors have been amassing interest and fees (probably at the "penalty" rate of 29% or more!). When you dismiss, all that comes back at you.

It would look like you were never in a Chapter 13 for the last 2 years! They will start suing you and quickly, especially since they know you are capable of filing bankruptcy again.

[momofthree]

Can you simply convert to a ch.7 now that your house isn't in arrears?