Chapter 13 Dismissed

[Klocke61]

Hello everyone. I’m new to this forum, so please bear with me. My Chapter 13 Bk was dismissed after the 341 meeting - what happens next? How do creditors behave when this happens and what do I do please?

[justbroke]

Welcome to BKForum.

The creditor will likely pounce on you like a cat on three-legged mouse. Seriously, they now know that you're capable of filing so they'll probably run to the courthouse steps to get a judgment and then make sure it becomes a secured judgment (by recording it).

All of the interest and expenses that accrued since you filed, including the creditor's attorney fees, will be added to your account. I would expect nothing less than a very aggressive attempt to collect the old and new debt.

What do you do? Refile or at least figure out why your Chapter 13 failed. If you found that you can't or won't stick to the budget and pay the Chapter 13 Trustee, then there is nothing anyone can do. You would be at the mercy of the creditors and how aggressive they want to collect.

If you lost your job, then you could have converted to a Chapter 7. Are you represented?

[Klocke61]

Hi, thank you for the prompt response.
I literally had just had my 341 meeting on 12/17/24, and the dismissal was created on 12/21/24. Four issues listed - first, it said non payment of the first installment. I had received an email from TFS (company facilitating payments to trustee) stating the account information was wrong. I updated the account information which was entered by my attorney’s office and the payment was deducted. Second, they had my employers address wrong, at a previous location I never worked at, and I clarified that during the meeting. Third, an employer’s deduction form wasn’t submitted, but I was never asked for one. And lastly, I advised during the 341 that I literally had just received a raise, so with that, my income was incorrect.

I will be contacting my lawyers office tomorrow, to determine what to do. This is very frustrating, and upsetting. I am so anxious.

[justbroke]

Your attorney can reinstate the Chapter 13 by filing a motion to vacate order dismissing the case. They just do this within 14 days (I think) of the order dismissing the case. You'll have to make sure the payments reached TFS by that time since the attorney must say that you are now current.

I wouldn't worry about the income change right now. Just make sure TFS has the correct information and the payments are going in. You may want to get a cashier's check and send it overnight to the TFS overnight address. Your attorney will tell you exactly what to do, so don't do anything just yet (e.g., mailing in the payment).

Don't fear since this is easily correctable.