Can we cancel the chapter 13 we started and just wait until June and file the 7 again since we can’t afford the payment? 20 Answers as of November 22, 2013

My husband and I had a chapter 7 discharged in June of 2006. A few months ago we filed for chapter 13 because it was too soon for the 7. Today our attorney went to the confirmation hearing and they changed our payment from $69 to neat $400. We know we can't afford this payment. My unemployment is also scheduled to run out December 31 2013.

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Stuart P Gelberg
Stuart P Gelberg | Stuart P Gelberg
Yes. The wait is 8 years from date of filing not discharge.
Answer Applies to: New York
Replied: 11/22/2013
Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
I wonder why it went up so much? The math is critical as getting into a ch7 involves flunking the "means test". If you have that much disposeable income you may not qualify for the ch7. Losing the unemployment may correct for that.
Answer Applies to: California
Replied: 11/22/2013
Stittleburg Law Office
Stittleburg Law Office | Bernd Stittleburg
Why don't you simply convert your case from Chapter 13 to Chapter 7 since you can no longer afford it.
Answer Applies to: Georgia
Replied: 11/22/2013
Portland Bankruptcy Law Group
Portland Bankruptcy Law Group | Christopher J. Kane
Yes, you can voluntarily dismiss your Chapter 13 case and then wait until 8 years has passed from the filing date of your prior Chapter 7 and then file a new Chapter 7 case. However, you should look into the reasons why you filed this Chapter 13 in the first place, and make sure Chapter 7 will take care of your objectives.
Answer Applies to: Oregon
Replied: 11/22/2013
A Fresh Start
A Fresh Start | Dorothy G Bunce
You can always dismiss a Chapter 13. But I am assuming you didn't file Chapter 13 for no good reason. If a creditor is on your tail, dismissing now and waiting 7 months will give any creditor 7 months to chase after you. You may want to do your best to try to continue with the Chapter 13 for at least 4 more months.
Answer Applies to: Nevada
Replied: 11/22/2013
    Goldsmith & Guymon
    Goldsmith & Guymon | Marjorie Guymon
    You can dismiss. However you will have to wait 2 years to refile or seek a court order to extend the automatic stay as it is only in forced for 30 days.
    Answer Applies to: Nevada
    Replied: 11/22/2013
    Moffa & Bonacquisti, P.A.
    Moffa & Bonacquisti, P.A. | John A. Moffa
    I'm not sure where you are getting your information, but the discharge date is irrelevant. It is the filing date that is important. A chapter 13 case typically can be dismissed by the debtors at their direction for any reason (there are exceptions).
    Answer Applies to: Florida
    Replied: 11/22/2013
    Stephens Gourley & Bywater | David A. Stephens
    You can dismiss the chapter 13. I do not know enough to know whether you can file a chapter 7 next June.
    Answer Applies to: Nevada
    Replied: 11/22/2013
    OlsenDaines | Rex Daines
    Yes, a chapter 13 is voluntary, which means you can dismiss it at any time. If you otherwise qualify for a chapter 7, you can file a chapter 7 immediately after the chapter 13 is closed. There must be 8 years between the filing date of the prior chapter 7 and the filing date of the new chapter 7.
    Answer Applies to: Oregon
    Replied: 11/22/2013
    Hayward, Parker, O'Leary & Pinsky, Esqs.
    Hayward, Parker, O'Leary & Pinsky, Esqs. | Michael O'Leary
    You will be eligible for Chapter 7 once eight (8) years had passed from the date of your prior Chapter 7 filing (not Discharge), so you could be eligible by March, 2013. Be certain that you properly time the filing of the 2nd Chapter 7, because if you are off by one day you are out of luck. Of course, when you dismiss your Chapter 13 you lose the benefit of the automatic stay and will be at the mercy (at least for a while) of the very same forces that drove you to bankruptcy in the first place. You will just have to deal with them for a few months.
    Answer Applies to: New York
    Replied: 11/22/2013
    Idaho Bankruptcy Law | Paul Ross
    Your attorney should tell you why the jump in your payment. The three of you need to review the Sch I & J or Means Test to find out why the jump and to see if something is missing. Your attorney cannot simply increase your payment without consulting with you. Yes, you can dismiss and refile, but you may not have the relief you need between now and then.
    Answer Applies to: Idaho
    Replied: 11/22/2013
    Heineman Law Office
    Heineman Law Office | Jeff Heineman
    Yes, you have the right to ask that your Chapter 13 be dismissed. You should have your attorney file for dismissal with the Court.
    Answer Applies to: Idaho
    Replied: 11/22/2013
    OlsenDaines, PC
    OlsenDaines, PC | Kristoffer Sperry
    A chapter 13 is voluntary, meaning you have the right to dismiss at any time for almost any reason. In most circumstances, after a Chapter 13 has been dismissed you can re-file a chapter 7 once it has been more than 8 years from your prior chapter 7-so long as you meet all the other normal Chapter 7 filing requirements. There are a couple of pitfall to be aware of; 1) if a creditor filed a motion for relief in your Chapter 13 prior to your voluntary dismissal it could delay your ability to file another bankruptcy for 6 months and 2) if you refile a Chapter 7 within a year of filing your Chapter 13, the automatic stay (which protects you against creditor collection efforts while in the bankruptcy) will end/terminate after 30 days unless your attorneys files a separate motion with the court. Discuss all your options carefully with an experienced and qualified Bankruptcy Attorney prior to making any final decisions about your case.
    Answer Applies to: Idaho
    Replied: 11/22/2013
    Deborah F Bowinski, Attorney & Counselor at Law | Debby Bowinski
    You should speak with your lawyer to determine the best strategy. You can voluntarily dismiss your chapter 13 case, or you can try to string it akin for as long as possible to gain a little more protection from your creditors. Once the case is dismissed the creditors will be free to pursue you again until you are able to file a new chapter 7.
    Answer Applies to: Colorado
    Replied: 11/22/2013
    Elkington Law
    Elkington Law | Sally Elkington
    If you dismiss your Chapter 13, make sure you and your attorney discuss whether you need the benefit of the automatic stay in the Chapter 7 from the date of filing. This is a little complicated, so you should definitely speak to an attorney about it. $400 is quite a jump, which makes me believe you either have secured or priority debt, which will not be discharged in a Chapter 7. Make sure you fully understand why your payment went up so much before you dismiss.
    Answer Applies to: California
    Replied: 11/22/2013
    Law Offices of Linda Rose Fessler | Linda Fessler
    Yes. You can do that. It's a shame that it is not already June because then you could convert to a Chapter 7 for a minimal fee. If you dismiss the 13 now, come June you will have to pay the full filing fee and probably have to pay the attorney to prepare the paperwork again.
    Answer Applies to: California
    Replied: 11/22/2013
    Law Office of Shawn N. Wright | Shawn N. Wright
    I am not sure why your payment was increased, so it's hard for me to provide a specific response. But as a general rule, it is possible to make a request to the Court that your Chapter 13 case be voluntarily dismissed. Also, before you presume that you are definitely eligible for Chapter 7 in June 2014, you have to remember that you must qualify for Chapter 7 now on strict income guidelines (the Means Test). So, you should speak with your attorney on that issue and make sure.
    Answer Applies to: Pennsylvania
    Replied: 11/22/2013
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