#Trustee motion to dismiss chapter 13 code#

In these and countless other circumstances, it’s good to be able to get out if that’s your best option. Or your income goes down significantly so that you can’t catch up even within the extended time Chapter 13 provides. In the example of being behind on your mortgage, if you came into some money you might be able to quickly catch up and no longer need the time that Chapter 13 buys you. Or your financial circumstances change so that you don’t need Chapter 13 help, or else it doesn’t help you enough. So now you decide to surrender or sell the home instead, and don’t need the Chapter 13 case. For example, you may have filed to catch up on home mortgage payments but you get a job out of state. The major reason you filed your case may no longer apply. So it can be important to be able to get out. The Importance of the Dismissal OptionĪ Chapter 13 case lasts a long time compared to a Chapter 7 case-usually 3 to 5 years. is unenforceable.” ( Section 1307(b)) You can‘t be forced to sign away this right by contract or otherwise. The statute finishes by saying: “Any waiver of right to dismiss. In fact Congress thought this right to dismiss so important that you can’t be forced to give it up. The idea is to encourage people to pay part of their debts instead of writing them off under Chapter 7. Naturally you’ll be more inclined to try a particular legal solution if you can always get out of it. Most likely Congress included this right to provide an incentive for people to file under Chapter 13. So this is a powerful right special to Chapter 13. The wording isn’t that the court “may” but rather that it “shall” dismiss your Chapter 13 case.Īs a result if you ever want your Chapter 13 case dismissed, usually within a day or so of your bankruptcy lawyer filing a motion to dismiss your case will be dismissed.īe aware that there isn’t a similar statute enabling the easy dismissal of a Chapter 7 “straight bankruptcy” case.

This seems to mean that the bankruptcy court doesn’t have any choice about it. The law says that “the court shall” dismiss the case whenever you ask.And you can dismiss your case after your payment plan has been approved by the court, for example, if your circumstances change and you don’t want to be in it any more. So you can dismiss it soon after filing, if you realize you’ve made a mistake and change your mind. You can ask for a dismissal “at any time”-at any point in the life of a Chapter 13 case.Two parts of this deserve to be highlighted:

( Section 1307(b) of the Bankruptcy Code.) the court shall dismiss a case under this chapter.

#Trustee motion to dismiss chapter 13 code#

You can dismiss a Chapter 13 case easily because the Bankruptcy Code says you can, and says so very clearly: Yes, almost always you can end a Chapter 13 case, by getting it “dismissed.”. But what if you don’t want to be in the Chapter 13 case at all? Can you just end it altogether? The last three blog posts have been about amending, or “modifying,” your Chapter 13 payment plan. The Bankruptcy Code explicitly says that, at the request of the person in a Chapter 13 case, the bankruptcy “court shall dismiss” the case. THE ACH AUTHORIZATION FORM AND A VOIDED CHECK OR SAVINGS DEPOSIT SLIP MUST BE PROVIDED TO THE TRUSTEE AT OR BEFORE THE 341 HEARING.Your Voluntary Dismissal of a Chapter 13 Case AUTOMATED CLEARING HOUSE (ACH) NETWORK ELECTRONIC PAYMENT TRANSFERS FROM THE DEBTOR’S FINANCIAL INSTITUTION TO THE TRUSTEE’S BANK THROUGH THE AUTOMATED CLEARING HOUSE (“ACH”) NETWORK.DEBTORS WILL COMPLETE AND SUBMIT THE ACH AUTHORIZATION AGREEMENT AND CHOOSE TO HAVE THEIR MONTHLY PAYMENT DRAFTED ON THE 5TH OR 20TH DAY OF THE MONTH.PLEASE INCLUDE YOUR NAME AND CASE NUMBER ON THE CASHIERS CHECK OR MONEY ORDER. FUNDS MUST BE RECEIVED AT THE TRUSTEE’S BANK BY THE DEBTOR’S MONTHLY PAYMENT DATE. MONEY ORDER OR CASHIER’S CHECK DEBTORS MAY MAIL A MONEY ORDER OR CASHIER’S CHECKS, PAYABLE TO THE STANDING CHAPTER 13 TRUSTEE, TO THE TRUSTEE’S PAYMENT ADDRESS.IRS-1099, SELF-EMPLOYED, UNEMPLOYED OR RETIRED CLASSIFICATION) MAY CHOOSE THE FOLLOWING PAYMENT METHODS: PAYMENT OPTIONS FOR NON-SALARY OR HOURLY WAGE DEBTORS A DEBTOR WHO IS NOT A SALARIED OR WAGE EMPLOYEE REQUIRED TO MAKE PAYMENTS UNDER A WAGE DIRECTIVE (i.e. EMPLOYER PAYROLL DEDUCTIONS NORMALLY BEGIN IN THE FOURTH MONTH OF YOUR PLAN.

WAGE DIRECTIVE – FOR SALARY OR HOURLY EMPLOYEES A DEBTOR WHO IS AN HOURLY OR SALARIED EMPLOYEE AND IS REGULARLY PAID AN AMOUNT EACH MONTH THAT EXCEEDS THEIR PLAN PAYMENT (AFTER TAXES AND OTHER DEDUCTIONS) IS REQUIRED TO SUBMIT A WAGE DIRECTIVE.THE COMPLETED WAGE DIRECTIVE FORM MUST BE PROVIDED TO THE TRUSTEE BEFORE OR AT THE TIME OF THEIR MEETING OF CREDITORS (341 HEARING). ONCE YOUR PLAN IS CONFIRMED BY THE BANKRUPTCY COURT, THE DEBTOR WILL MAKE PLAN PAYMENTS UNDER ONE OF THE FOLLOWING METHODS: