Dismissed chapter 13

[JanRo819]

Hi ,

I am currently in a bind. My spouse and I filed for a joint chapter 13 in 11/2019 with a 5 year payment plan at $1200.00 per month.

we defaulted on our plan and the case was dismissed 8/22. I just need help understanding if we still owe or if this was in fact discharged? Below is the info on my paper work:

numbers of months from filing or conversion to last payment: 32

number of months case was pending: 36

total value of assets abandoned by court order: NA

total value of assets exempted: 127,000

amount of unsecured claims discharged without full payment: $0.00

Questions I have:

1. can anyone tell me what this means? Do we still owe? How long after being dismissed do the creditors have to come after you? It’s now Jan 2023 and I haven’t heard anything.

2. Can I sell my house during this process since I’ve defaulted and it’s now dismissed?

3. I am going through a divorce. Will I be able to file a chapter 7 if the debt is still owed?

thank you in advance

[shipo]

I think justbroke would be the perfect person to comment on your post; I believe he also started out with a Chapter 13, had it dismissed, and ended up with a Chapter 7.

[justbroke]

Welcome to BKForum. I never had a case dismissed... only converted. You are beyond the chance to convert.

1. can anyone tell me what this means? Do we still owe? How long after being dismissed do the creditors have to come after you? It’s now Jan 2023 and I haven’t heard anything.

It's up to the creditors. They can come after you at any time.

2. Can I sell my house during this process since I’ve defaulted and it’s now dismissed?

If the case is dismissed and closed, then you are free from the bankruptcy.

3. I am going through a divorce. Will I be able to file a chapter 7 if the debt is still owed?

Yes you could file. But you should make sure you do things in a certain order. Typically that's separation agreement, divorce, then bankruptcy. Be careful that certain debt you may agree to in the divorce may not be dischargeable in a bankruptcy that follows. Please obtain competent legal advice on the impact of your separation agreement and its impact on a bankruptcy. You will likely need both a divorce and bankruptcy attorney to get it right.

To get the details of what you may still owe to creditors, only your creditor or someone who can read your Plan and the Trustee's report can tell you what you may still owe. If the old debt is outside the statute of limitations (SOL) you may have been saved there.

Since you did not receive a discharge, no debt was actually discharged. It came back into full force and effect, with all back interest and attorney fees accrued since 8/22 (when you were dismissed).

You were so close to discharge. You best bet now is to get back with your bankruptcy attorney to see the effect of the dismissed bankruptcy and perhaps to start talking about a post-divorce Chapter 7.