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Discussions tagged with 'Chapter 13 Dismissal and Filing Chapter 7 Bankruptcy'
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Have a case scenario. Husband and wife filed Chapter 13 Bankruptcy January 2025. Own a primary owner-occupant house valued at $300,000 in Pennsylvania with a mortgage of $170,000, therefore has plenty of equity. The Chapter 13 is currently two months behind and the Trustee is threatening of dismissing the Chapter 13 Bankruptcy for non-payment. When filed Chapter 13 Bankruptcy, the house mortgage was in arrears but no longer delinquent. Included in Chapter 13 Bankruptcy as creditors are medical bills and credit cards totally around $40,000. Can the petitioner voluntarily dismiss the Chapter 13 Bankruptcy (due to nonpayment) and refile a Chapter 7 Bankruptcy? Can the equity in the house not be touched due to homeowner exemption on primary homes? And isn’t there other exemptions allowed for a married couple in Pennsylvania? Any advise or tips or case scenarios would be appreciated. I know I am not expecting legal advise but rather similar case scenario to see which direction to take: Either consult an attorney, legal aid, or just continue paying on the Chapter 13 Bankruptcy. Thank you in Advance.
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