When your case gets dismissed in your Indianapolis Chapter 13 Bankruptcy, you are faced with having to come up with a new solution for your debt problems. Regardless of the reason why your case got dismissed such as for non-payment or because you needed to look into other options, a new direction maybe needed. Let’s discuss some options that are available after a Chapter 13 Bankruptcy case is dismissed.
One of the most common options that people choose after a failed Indianapolis Chapter 13 case is filing a new Chapter 7 case. A Chapter 7 case can eliminate all of your unsecured debts and make your financial situation much easier. Many times when a debtor cannot afford the payments in their Chapter 13 to repay their house or the cars, the debtor switches to Chapter 7 to surrender the house or car(s) they cannot afford. Other times the debtor will switch to Chapter 7 and then try to work out a loan modification or other options with their creditors in order to keep their house or cars.
Many times we help our Indianapolis Bankruptcy clients work out agreements directly with their creditors. Agreements such as loan modifications, tax settlement agreements, or other pursuits such as child-support reductions can greatly decrease the amount of total debt obligations that the debtor is facing. Sometimes after the agreements are made, the debtor can then file Chapter 7 bankruptcy to address large amounts of remaining unsecured debts.
When your Chapter 13 case is dismissed due to uncontrollable circumstances, sometimes the best remedy is to file a second Chapter 13 case. Many people encounter job loss or other insurmountable circumstances in their first Chapter 13. If your circumstances have improved after the dismissal of the first Chapter 13, you may be successful using a second Chapter 13 case.
Keep in mind two things, however. First, if nothing very substantial has changed, you may be doomed to a failed case eventually the second time following the pattern of the first. Numbers do not lie: you may be up against an impossible situation just like the first time. Secondly, your next Chapter 13 may be challenged for “bad” faith and your automatic stay protection can be limited depending on the situation. However, many “second attempt” Chapter 13’s are successful and do not face creditors objections: the creditors WANT the debts to be repaid as long you are serious about the case.
Just because your Chapter 13 case got dismissed, it is not the “End of the Road.” Many other options to address your financial situation are still available after the dismissal. We are an Indianapolis and All-Indiana Chapter 13 attorney office that know all the options. Give us a call and we will give you options even if your Chapter 13 case has been dismissed.
~Indianapolis Chapter 13 Bankruptcy Attorney John F. Bymaster on My Chapter 13 Case Dismissed: What’s Next?