Dismissing Chapter 13 - Reverting to Origina Status

Submitted by naomidog on Mon, 01/07/2008 - 00:57

I filed Chapter 13 18 months ago. My car loan repayment was part of the plan. I've paid off all but $200.00 of the secured loan, with $8k remaining as an unsecured debt. My car is now undriveable and I do not have the luxury of waiting 30 day to have the court approve my purchase of a vehicle. I asked my attorney what would happen to the car loan if I had the Chapter 13 dismissed and he said that things would revert to the way they were before I filed for bankruptcy. Has anyone been in a similar situation? Does that mean that I owe the $8k as part of a secured loan again. My attorney is not very forthcoming with answers.

All the bills would revert back to regular status and you would owe them if you dismissed the chapter 13. You are talking about not filing on the car right? or am I reading this wrong.

Bankruptcy laws have changed so much over the years, you attorney should be more forthcoming with you, you are paying him right? I would not retain an attorney that would not answer my questions, that is what he is there for.

Mon, 01/07/2008 - 02:29 Permalink

Once you dismiss you will owe everything once again.
Lunchtime is right you must have an attorney who has answers to your questions. The law has changed a lot and you have the right to know as well.

Mon, 01/07/2008 - 06:54 Permalink

i dont think id revert the bankruptury its pretty easy to get a car you cant file bankrupcy for 7years so it shouldnt be a problem getting another car they know you cant file for 7 years

Mon, 01/07/2008 - 20:16 Permalink

I did not understand your statement Da. He is not refiling bankruptcy. Just dismissing the same and I think that would put him in the state that he was in exactly before the filing of the BK13. Now I am not sure what happens to the car because the payments have been made but according to the attorney if everything is reinstated then the debts come back again. Does that mean that the paid car loan will be chargeable all over again?

Tue, 01/08/2008 - 06:40 Permalink
crorkz (not verified)

tSKZIn Muchos Gracias for your article.Really looking forward to read more. Much obliged.

Tue, 08/05/2014 - 15:01 Permalink