Finishing a Chapter 13 case successfully is a big deal. It is rewarding financially and emotionally. Here’s how it happens.
The Bankruptcy Code explicitly says that, at the request of the person in a Chapter 13 case, the bankruptcy “court shall dismiss” the case.
There are various ways of dealing with debts that arise during the course of your Chapter 13 “adjustment of debts” case.
You and your spouse may need the extraordinary benefits of Chapter 13, but things get awkward if your marriage ends before the case does.
It’s a matter of timing. And that timing depends on whether you previously filed under Chapter 7 or 13, and what you are filing under now.
The federal court itself says it is “extremely difficult” to go through a Chapter 7 case successfully without an attorney.
If you owe taxes on more than one tax year, Chapter 7 may discharge the older year(s) so you can make low monthly payments on the rest
The “automatic stay” stops creditors from chasing you. A recently dismissed bankruptcy case or two can threaten this crucial benefit.
Whether you can write off your student loan could very much depend on WHEN you ask the court for a determination of “undue hardship.”
If you fall behind on support payments, it MIGHT make sense to file bankruptcy right when you can afford to begin making them again.
Either be prepared to justify why you should be allowed to file a second bankruptcy case within a year, or maybe instead wait out the year.
You can file a new bankruptcy immediately after finishing another one, but why would you?
When you start a Chapter 13 plan, it’s good to have Chapter 7 available as a backup plan.