Motion to Dismiss in Chapter 13 – What does this mean?
Are you facing a Motion to Dismiss in Chapter 13? What does it mean? A Motion to Dismiss in Chapter 13 is simply the trustee requesting your case to closed and ended. These Motions are usually filed because the payments on your case are more than 3 months behind or because you have not turned in requested documents.
Does a Motion to Dismiss mean my Chapter 13 is over?
No, a motion to dismiss does necessarily mean that your Chapter 13 is over. In fact, most people in Chapter 13 recover from a motion to dismiss and continue with their case. Most people who are behind on their case make arrangements to come back up to date. They will make extra payments to catch back up. If they are being dismissed for not turning in documents, then these documents can still be turned in to save the case.
If a person is too far behind, they can also have their attorney file a Motion to Modify their Chapter 13. This will allow the case to come back up to date without making catch-up payments. However, with a motion to modify, your normal monthly payment may need to increase a little bit to make up the difference.
Are There Other Options for a Motion to Dismiss in Chapter 13?
Yes, there are other options. First, many people who are facing dismissal may choose to switch their case over to Chapter 7. Chapter 7 may be available for people who could not afford their payment or suffered a drop in income. Also, sometimes a Chapter 13 can still be restructured to lower future payments. However, restructuring the Chapter 13 may require changing what items are going to be paid through the plan.
In addition, other options may exist outside of Chapter 13. Such options include loan modifications for houses or debt settlement in some cases. You may also be able to re-file Chapter 13 in the future if you find that other non-bankruptcy options could not address your situation.