What happens if a Chapter 13 case gets dismissed?

A person may want to enter Chapter 13 bankruptcy in order to create a repayment plan without having to worry about creditors taking legal actions. There are, however, instances when a person's Chapter 13 dismissed. Since a bankruptcy filing will automatically stay all creditor actions, such as foreclosures and lawsuits, then, a dismissal will lift the stay. Once the automatic stay is lifted, the creditors are now allowed to pursue legal actions. A mortgage lender can proceed with foreclosure proceedings or a car company will repossess the vehicle. Wage garnishment and collection efforts will also continue. 

In order to get your Chapter 13 case accepted in court, you should know some of the reasons for dismissal. One of the reasons is technicality. If a debtor fails to properly file the petition and the schedule of assets and liabilities, the court can dismiss the case. There is a 15-day extension if documents are lacking. After this, the case is dismissed if the documents are not filed. It is also important that the debtor has a plan of repayment 15 days after filing for bankruptcy. Unlike Chapter 11, the Chapter 13 plan needs to be filed within two weeks. A Chapter 13 filing could also be dismissed if the creditor fails to attend the meeting of creditors, which is not the same in a Chapter 7 filing wherein the debtor can be represented by a lawyer. Get a bankruptcy expert's opinion and help before filing for Chapter 13 to avoid a dismissal.