Results 1 to 4 of 4

Hybrid View

  1. #1
    Join Date
    Nov 2011
    Posts
    2

    Default What to Expect After Chapter 13 Dismissal

    My question involves bankruptcy in the state of: North Carolina

    I currently have 3.5 years left on a 60 month chapter 13. The unsecured payback % was originally 70% on $68,000 of unsecured debt. Plan base was listed as 138,000 (66k for mortgage payments, 17k for vehicle, 49k for unsecured, 3k for lawyer and 4% for trustee). I was being an idiot and signed up for one of those debt settlement companies and after a few months I was threatened by some creditors with prison time and wage garnishment. My income is around 91k a year, single with no dependents. My bonuses must currently be turned over to the trustee, which will add approximately 20k to the base plan payback which would put me at around a 99.7 or 99.9% payback (tax refunds will also be seized by trustee, so I may payback 100%).

    Before filing, I had never missed any bill payments (with the exception of unsecured which I stopped paying on 1 after filing), so all of the money for the lawyer, initial payment, etc... came out of my savings. I ran into some car trouble a few months back and my payments have been 5-7 days late (due on 6th, getting to trustee on 11th) for the past 3 months and will continue to be until January. Payments are 2300 a month, but I only get 2292 per check (so it's a whole check + some of the second one). I'm assuming that the dismissal notice will be coming soon and I wanted to know what can I expect after the dismissal? Mortgage and car payment will be no problem, but I'm assuming that with all the late fees and interest charges for unsecured, I'll be looking at the balances increasing by approximately 100-150k+/-

    I have two questions:

    1. Can my wages be garnished and if so, by how much? If a lein is put on my home (currently 50k upside down) for let's say 250k in credit card debt; while the home is worth 96k how will this impact me. I would like to pay them back, but I'd need a more sensible repayment plan.

    2. If my case isn't dismissed, I failed to realize that in order to purchase a new vehicle that I would need to come up with that money on top of my 2,300 a month payment. I also didn't realize that I would be restricted from having a child until my plan ended, unless I'm able to pay for their expenses along with the 2,300 month payment. So, I was going to just let the case be dismissed anyway. In the case that it's not dismissed, are there any laws that would allow me to have a child or purchase a car while decreasing the unsecured payback to something below 100% (maybe 70-80 and let me keep bonuses and tax returns?)

  2. #2
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: What to Expect After Chapter 13 Dismissal

    If you get your bankruptcy dismissed due to your failure to make the required payments under your plan, your creditors are free to use whatever judicial remedies are available to them to collect any judgments they hold, including garnishment and execution.

    Your repayment plan is based upon your disposable income. If you have changes in your disposable income, discuss that with the trustee. Why would you need to purchase a car?

  3. #3
    Join Date
    Nov 2011
    Posts
    2

    Default Re: What to Expect After Chapter 13 Dismissal

    Thanks for the info, I spoke with my trustee and apparently they made a mistake with the scheduling (2 of the claims were duplicates, 1 from original creditor and 1 from collection agency). I've got a hearing in Jan to have my payment amended.

  4. #4
    Join Date
    Sep 2011
    Location
    OH10
    Posts
    17,019

    Default Re: What to Expect After Chapter 13 Dismissal

    I suggest once you solve the problem you are in, you obtain a money manager. With your income, those bill levels should easily be sustainable.

    1. Sponsored Links
       

Similar Threads

  1. Collection Lawsuits: Statute of Limitations After Chapter 13 Dismissal
    By cotton02 in forum Debts and Collections
    Replies: 2
    Last Post: 03-15-2009, 06:30 AM
  2. Chapter 13: What Can I Expect As A Creditor, After Debtor's Chapter 13 Filing
    By crazecars in forum Bankruptcy Law
    Replies: 10
    Last Post: 06-10-2008, 07:00 PM
  3. Chapter 13: Dismissal Of Chapter 13
    By mskitty14 in forum Bankruptcy Law
    Replies: 1
    Last Post: 02-04-2008, 04:29 PM
  4. Chapter 13: Chapter 13 Dismissal Imminent in California
    By LiveLoveLaugh in forum Bankruptcy Law
    Replies: 4
    Last Post: 09-12-2007, 10:58 AM
  5. Chapter 13: Chapter 13 Dismissal
    By MRD in forum Bankruptcy Law
    Replies: 1
    Last Post: 04-28-2007, 01:11 PM
 
 
Sponsored Links

Legal Help, Information and Resources