Dismissing a Chapter 13

[mountanddo]

There seems to be an increase in posts about people wanting to dismiss their Chapter 13. Aside from people not wanting to be tethered to a monthly payment, what would be the reason why people are doing this?

I'm in the 4th month of a 36 month Chapter 13 and besides having to go to the bank to get a money order once a month and mailing it in, I hardly notice. It's just like paying another bill except there is only one and I don't have to worry about paying the minimum balance and seeing as least that much charged right back on the card for the interest. My phone hasn't rang since I filed. I was getting upwards of 15 calls a day from all different numbers from just Captial One. I don't have to worry about process servers coming to my door on a Saturday pounding on the door so that they could serve me a summons. I'm not scared that a creditor will somehow call my work and my employer will start geting harrassed as well. I can't imagine gong back to the nightmare that I lived for a year.

For those of you contemplating this please look forward a couple of months and imagine what it is going to be like without the protection of your bankruptcy. I live on very little money but if I started getting judgements and wage garnishments I would be living in a shelter so the alternative, for me is not an option. If you have used your exemptions and maximized your budget and you still aren't able to stick to it you are spending too much money.

[df04527]

Yup agree with that. I have also noticed this and can't help but wonder if there are deeper rooted issues that people are realizing a BK won't fix and hence wanting to get out of it.

[ValleYum]

I wonder, though, if these folks had lawyers that did not go to bat for them to have a properly "maximized" budget. I read where so many people don't even get to have basic budget items like food, transportation and medical even close to standards. Then they say that their lawyers didn't want to rock the boat/upset the trustee.

It is either that or they are trying to keep assets they truly can not cover with their plan payments.

Losing the protection of a BK after filing and taking the credit hit seems really scary to me.

[8forme]

We are 6 months into a 60 month plan and could not more pleased. We DID have a good attorney that maximized our budget. But, in reality, we were so used to living on bare bones that we now have a very workable, realistic budget that allows us to have some leftover each month. Whereas before we were in the red each month. It is so nice to not have all the phone calls, not to have to worry about what to pay or not have any extra money for the unforseen expenses. I think a CH13 is a very small price to pay for that peace of mind. We will gladly make that payment for 60 months to trade for a fresh start!!

[HHM]

Dismissal can happen for a number of reason.

Most common: changed circumstances later in the 13, usually decrease in income.
Other reasons:
1. Unrealistic expectations (e.g. trying to save a house with $2,000 mortgage payment on only $4,000 per month income).
2. Unwilling to make some lifestyle changes to make the budget work (e.g. still spending $400 per month a wine and liquor).
3. Unrealistic budget to begin with (the debtor and attorney are culpable on this one).

Most chapter 13's, even poorly crafted ones are inherently feasible, but because the plan is for 5 years, too many things change. The law really should revert back to a 3 year requirement.