Steps to Prevent Your Chapter 13 Bankruptcy from Being Dismissed

A Chapter 13 dismissal can have devastating consequences for a debtor. Therefore, it is imperative to adhere to all the rules and procedures required by the Bankruptcy Code and the local bankruptcy rules. The following are a few tips for avoiding dismissal of a Chapter 13 case.

Disclose All Assets and Debts – Failure to make a full and honest disclosure of your assets, debts, and other relevant information in your bankruptcy petition and schedules may result in dismissal or your case. Moreover, it may subject you to civil and criminal penalties for perjury.
Attend the Meeting of Creditors – Your attendance at the Meeting of Creditors is mandatory.
Understand Your Chapter 13 Plan – The Chapter 13 Plan sets forth how you will repay your debts. Although your bankruptcy attorney will draft the Chapter 13 plan, it’s important that you know and understand what it says so that you can comply with its provisions.
Cure Trustee’s Objections to Confirmation – If the bankruptcy trustee files Objections to Confirmation, you must work closely with your attorney to cure those objections. If you fail to cure the objections to confirmation before the confirmation hearing, your case will be dismissed.
Make All Pre-confirmation Plan Payments – You must begin making your Chapter 13 plan payments almost immediately after filing your Chapter 13 plan. In most cases, the plan payments will be made via income deduction by your employer, but it usually takes a few weeks for the income deduction order to be put into your employer’s payroll system. Therefore, it will be your responsibility to make the payments to the bankruptcy trustee until your employer begins the payroll deductions.
Communicate with Your Attorney – If you lose your job, have unexpected expenses, or encounter any other problem which may impact your ability to comply with the terms of your Chapter 13 plan, contact your attorney immediately. Depending on the nature of the problem, your attorney may be able to modify your Chapter 13 plan or request that your plan payments temporarily be suspended.
Cooperate with Your Attorney – At the end of the day, your bankruptcy and its outcome are your responsibility. Therefore, it’s imperative that you cooperate with your bankruptcy attorney by providing him with all documentation and information he requests, by attending all hearings, and by returning his phone calls in a timely fashion.

Getting Legal Help

The majority of Chapter 13 cases are dismissed. Many are dismissed as a result of mistakes, errors, and oversights by the debtor. Having the representation of a qualified bankruptcy attorney substantially increases a debtor’s chances of successfully completing a Chapter 13 case and receiving a discharge.

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