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Getting Chapter 13 Dismissed and Refiling Chapter 13 Again
Can you get a Chapter 13 Bankruptcy dismissed and refile Chapter 13 Bankruptcy again after the dismissal?
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10 Replies
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Yes, you can have a Chapter 13 bankruptcy case dismissed and then file a new Chapter 13 case later. But what happens next can change based on why your case got dismissed and when you file again. Here’s what you should keep in mind:
- Why Dismissals Happen: Courts dismiss Chapter 13 cases for a few reasons, like missing plan payments, ignoring court orders, or not finishing required courses.
- If the judge dismisses your case “without prejudice,” you can file again immediately.
- If it’s “with prejudice,” you must wait a period the court sets before you can file another case.
- Automatic Stay: If you file a new Chapter 13 within a year after the dismissal, the automatic stay that stops creditors from collecting on debts will usually only work for 30 days.
- You can ask the court to extend it but must show a good reason. This rule helps prevent people from abusing the bankruptcy process to delay creditors.
- Multiple Dismissals: If the court has dismissed your cases quickly multiple times, the judge may force you to wait before filing again.
- You should also explain why the new case is different or why it should be allowed to proceed.
- The goal of these measures is to stop manipulation of the bankruptcy law.
- Starting Over Again: When you refile, you must present a brand-new bankruptcy application.
- That means giving up-to-date financial details, fresh creditor lists, full disclosures, and an itemized budget.
- Pay special attention to the problems that caused the previous filing to fail, so the same mistake doesn’t happen again.
- Other Paths to Consider: If the Chapter 13 route no longer fits, consider switching to Chapter 7.
- You may also investigate debt settlement, loan modifications, or other debt help that better suits your current situation.
To wrap it up, you can refile Chapter 13 after a dismissal. However, you’ll need to understand why the previous case collapsed, how it could slow down the automatic stay, and how to fix the reasons behind the first failure. A bankruptcy attorney can guide you, making the choices clearer and the process smoother.
Chapter 13 Bankruptcy Dismissal: Your Questions Answered
If your Chapter 13 case is dismissed, it may seem like a dead end, but understanding what dismissal means—and your next steps—will empower you to move forward.
What Dismissal Means
A Chapter 13 dismissal wipes the bankruptcy case from the court’s active records. It lets your creditors start collection again. Unlike a discharge, which eliminates certain debts, dismissal usually means the debts you were trying to manage remain.
Common Dismissal Reasons
Missing a payment is the most common reason. Changes in income, medical emergencies, or job loss can make it hard to keep up. Other reasons include failing to submit required documents on time, not following the repayment plan, or not attending scheduled hearings.
Your Options After Dismissal
You generally have three paths:
- Refile Chapter 13: You can submit a new plan, but if your dismissal resulted from non-payment, you may face tighter deadlines or court objections.
- File Chapter 7: If you can pass the means test, you may eliminate unsecured debts immediately, but you can lose non-exempt assets.
- Negotiate with Creditors: If you can show a changed financial picture, creditors might agree to new terms, like a payment plan or reduced amount.
Refunds After Dismissal
You may get some money back if you’ve prepaid filing or plan fees and the case is dismissed. Refund amounts depend on your case progress and your court’s rules. Contact the bankruptcy court for the exact process.
Avoiding Dismissal
Preventing dismissal is about communication and consistency. Always submit documents on time, attend hearings, and prioritize plan payments. If you have a temporary setback, you can contact your attorney to request a court-authorized plan payment adjustment.
A dismissal may feel like a setback, but it opens the door to other solutions. Taking the right steps now can help you regain financial control.
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Can I have a Chapter 13 bankruptcy case dismissed and then file a new Chapter 13 case later. What should I keep in mind?
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Yes, you can ask to dismiss your Chapter 13 bankruptcy case and start a new one later, but you must keep some important legal and financial rules in mind. This short guide gives you the main points to consider, based on general bankruptcy rules in the U.S. as of my last update. Because each case is different, talking to a qualified bankruptcy lawyer is always a smart choice.
Dismissing a Chapter 13 Case
Voluntary Dismissal:
- Under [11 U.S.C. § 1307(b), you can ask to dismiss your Chapter 13 case at any time as long as you didn’t switch the case over from another bankruptcy chapter, like Chapter 7.
- To do this, you must file a motion to dismiss with the bankruptcy court.
- Usually, the court will approve it without holding a hearing, unless someone—like a creditor or the trustee—files an objection.
Involuntary Dismissal:
- The court can dismiss your case independently if you miss planned payments, fail to attend required hearings, or don’t follow court orders ([11 U.S.C. § 1307(c).
- If the dismissal is involuntary, your next bankruptcy case may get more scrutiny from the court.
What Happens if Your Case Gets Dismissed
Automatic Stay Limitations: When your bankruptcy case is tossed, the automatic stay that stopped all creditor actions—like foreclosure and wage garnishments—disappears.
Creditors can go right back to collecting as if the case never happened.
- Goodbye, Progress: The money you sent to the trustee usually doesn’t come back to you, and all the progress you made toward debt repayment under the plan disappears.
- Credit Score Surprise: A dismissal stays on your credit report for 7 years, measured from the day you first filed.
- It damages your credit almost as much as a bankruptcy that finished all the way.
How to Start a New Chapter 13 Case After a Dismissal
Can You File Again?
- You can file a new Chapter 13 case right after you drop the first one.
Still, a few rules may get in the way:
- Wait 180 Days: If the last case got thrown out because you missed court dates or court orders on purpose, you can’t file again for 180 days ([11 U.S.C. § 109(g).
- Watch the Serial Filers: Judges start to look closer if you file one case right after another.
- A new bankruptcy might get blocked if the court thinks you’re just trying to play the system.
Automatic Stay Limitations:
- Suppose your prior bankruptcy case was dismissed less than a year ago. In that case, the automatic stay in your new case will only protect you for 30 days unless you file a motion to keep it in place.
- You will have to show the court you are acting in good faith ([11 U.S.C. § 362(c)(3).
- If you had two or more dismissals in the past year, your new case has no automatic stay.
- You must ask the court for one and convince the judge that you are approaching the bankruptcy in good faith.
Good Faith Requirement:
You cannot just file again out of desperation to win the court’s approval. Judges will decide good faith based on a few important questions:
- Why was the last case dismissed?
- Temporary loss of income looks different from willful failure to stick to the plan.
- Have you made real, measurable changes in your finances?
- A steady new income or a trim budget is a good start.
- Is this new bankruptcy truly for a bankrupt purpose, like getting a fresh start, or is it to buy time and confuse creditors?
Key Considerations, Reasons for Dismissal and Refiling:
- Look hard at why the last bankruptcy didn’t work.
- If the problem was that you could not keep up with the payment plan, ask yourself if you now have more income, lower living costs, or both that will let you meet future payments.
- If the first plan flopped, talk to a lawyer who can create a new repayment plan that works for your situation.
- Courts generally dismiss someone who keeps refiling without fixing the mistakes that got the first case thrown out.
Effect on Your Creditors:
- Creditors can fight the second case, especially if they lost money last time or think you’re unfairly using the law to dodge debts.
- Secured creditors, like your mortgage or car loan, might pick up where they left off on foreclosure or repossession if the first case is tossed.
- You must time the new filing to get the automatic stay back.
Costs and Fees:
- Launching a new Chapter 13 case means you’ll pay filing fees again: about $313 for 2023, plus any lawyer fees.
- If you already paid your lawyer through the first plan, you might have to pay for a new lawyer upfront this time.
Credit and Planning Your Finances:
- A new filing wipes your credit history clean, and the 7-year clock starts again from this new date.
- Team up with a financial advisor or lawyer to ensure your next Chapter 13 plan fits your paycheck, bills, and big-picture goals.
Alternatives to Refiling
Before you jump back into Chapter 13, consider other roads you might take. You could work out a new deal with creditors, look into debt settlement, or, if your situation fits, see if you qualify for Chapter 7. That option could wipe out your unsecured debts without making you reorganize them.
Keep in mind that Chapter 7 does come with stricter rules, like passing the means test. That’s why sitting down with a lawyer to see if you qualify is a smart move.
Legal Representation
Going to bankruptcy court is a big deal, and the folks in charge want you to have a lawyer. Chapter 13 is tricky, and a good attorney can:
- Put together a repayment plan that the court will accept.
- Handle any good-faith hearings or challenges to the automatic stay.
- Follow the local court rules, which can differ in different places.
Practical Steps
- Talk to a Lawyer: Before you ask for a case to be thrown out, talk to a bankruptcy attorney.
- They can help you plan the right time to refile and fix any problems from your last case.
- Get Your Papers in Order: Gather your latest income, expenses, and debts to prepare for the new paperwork.
- Fix Old Problems First: If your last case was tossed because you missed payments or made a filing mistake, create a strong plan now to prevent those things from happening again in your next case.
- File Right Away: Don’t wait too long to file if you want the automatic block against creditors to step in, like to stop a foreclosure.
- You can ask the court to extend the block if you need more protection.
Extra Points to Think About:
- Local Court Rules: Every bankruptcy court has extra rules about dismissals and when you can try again.
- Double-check with your court’s website or ask your attorney to ensure you follow the right steps.
- Talk About Taxes: If your last Chapter 13 plan covered tax debts, make sure the new plan deals with any leftover balances.
- Certain tax debts can’t be eliminated, so you don’t want to miss them again.
- Stay Updated: Bankruptcy rules can change. Look for news on court websites or blogs.
- Lately, some cases on GCA Forums have shown courts are looking more closely at people who keep filing new cases. However, no new rules on when you can refile have been announced up to my last training date.
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Thanks so much for the feedback. I need to find another bankruptcy attorney one who’s going to truly help me.
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Let’s take a hypothetical situation with your case scenario. What type of creditor protection has the current Chapter 13 Bankruptcy repayment plan given you? I spoke with Gustan briefly yesterday, and he briefed me on a situation where the state of Michigan does not want to budge on their claim of fraudulent Medicare funds of $60,000, and you are currently paying $700 a month. Chapter 13 Bankruptcy is 60 months, so if you pay $700 per month and multiply that by 60 months, it turns out to be $42,000. Therefore, if you are only repaying the $60,000 and no other debt in the Chapter 13 Bankruptcy, then after 60 months, you have paid the state of Michigan OIG $42,000, and the $18,000 will get discharged. If you are making $60,000 per year, $700 per month is a big chunk out of your monthly gross income of $5,000, which is 14%. What other debts do you have included in your Chapter 13 Bankruptcy repayment? Car? Credit Cards? If you have made timely payments to the trustee, you can get the courts to dismiss the Chapter 13 bankruptcy voluntarily. Then, after a few months, you should refile the Chapter 13 Bankruptcy and make sure you include your debts outside the bankruptcy. You must look at the overall situation and what course of action will best benefit you. When you refile bankruptcy the second time around, I would include your business in there and dissolve it. I am no attorney and am talking out of common sense. I think if you dissolve your business and give the paperwork that the business has been dissolved, the OIG may find you favorable and find it in his heart that maybe you did not commit Medicare Fraud. Just my two cents. Remember that bankruptcy attorneys will offer a one hour free consultation.
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Thanks Dawn so much for your advice. I’m going to look into just that hopefully this will work in my favor because I would never intentionally misuse funds . I was told that the billing fit Homecare should be done in a decimal formula. Again I really appreciate your advice.
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Therese, the best thing for you is to take a few steps backward to go forward. Analyze your Medicare Fraud charges and once the OIG finds you were not compromised with Medicare Fraud, then refile the Chapter 13. You should include all your debts outside the bankruptcy in the new bankruptcy. Take the Bankruptcy Means Test. I have someone you should talk to. She is out in California and is a paralegal, but better than most attorneys. Her name is Ali Rubalcava, and she is a member of the forum and can be reached at 559-334-4188. Ali is based in California.
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Hi, The best way to reach me is 559-372-2823 or text 559-744-4011. Email: ali@ficodiva.com
Thank you Gus!
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Nice to meet you. I will call you today if that’s ok with you.
Therese W
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Therese. You will like Ali.
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