Chapter 13 bankruptcy helps those that are in debt to pay them off in a period of 3 – 5 years and become current in all their loans including their mortgage loan. Even though bankruptcy can hamper the credit report, this is one of the alternatives that can be used by the homeowners to save their home, especially if they have a lot of equity in their home. If at any point, the debtor feels that they can now cancel the Chapter 13 bankruptcy, then there are special provisions that allow them to do so.
Dismissal of Chapter 13 bankruptcy
Therefore Chapter 13 can also be terminated. The motion to dismiss is a petition that must be filed in the proper format. This is available from the clerk in the bankruptcy court, who is also responsible for the forms necessary to file a Chapter 13 bankruptcy.
The petition should be filled in with all details and the reason should be stated for cancelling the Chapter 13 bankruptcy. After filing the motion, a copy of the petition / motion needs to be sent to all the creditors. The court appointed trustee will be notified and will in turn notify all the creditors of the cancellation of Chapter 13 bankruptcy.
Stopping the Dismissal of Chapter 13 bankruptcy
Dismissing the after this a hearing date is also set to dismiss the case of Chapter 13 bankruptcy. All details of the case are herein provided by the court clerk. After hearing the petition and if there are no objections for the dismissal of the case, Chapter 13 bankruptcy will be dismissed.
During the process of 3 – 5 years, if the debtor fails to comply with the guidelines set forth by the bankruptcy court, then the Chapter 13 bankruptcy can also be dismissed voluntarily. If the court has dismissed the case and you still want the Chapter 13 bankruptcy, then there is only a limited time to contest the dismissal.
The time for contesting the same will vary from one district to another.The problem can be easily remedies in case the debtor has forgotten to make a payment or some small signatures are missing on the documents. A petition for reconsidering the motion to file for Chapter 13 bankruptcy can be filed again with the county clerk. The judge will then reconsider the case and then either admit Chapter 13 bankruptcy or dismiss the case.All notifications will be sent my mail for the judgment on the Chapter 13 bankruptcy case.
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