What If My Chapter 13 Bankruptcy Is Dismissed In South Carolina?
Bankruptcy dismissal can happen for several reasons, many of which allow you to re-file your petition within the year. If the South Carolina bankruptcy court dismissed your petition, an experienced Chapter 13 bankruptcy lawyer from the Reed Law Firm, P.A. might still help you achieve discharge. Discuss your re-filing options with our experienced Florence legal team today by calling (843) 679-0077 or connecting with us online.
Top Reasons for Chapter 13 Dismissal in South Carolina
The court’s reason for dismissing your Chapter 13 bankruptcy plan generally dictates your options following the plan’s failure. Most plans are dismissed for the following reasons:
- Failure to Make Payments: Chapter 13, or wage-earner’s bankruptcy, restructures your debts. It requires petitioners to follow a 3-to-5-year repayment plan. If you fail to make timely payments, the court may dismiss your petition.
- Not Following the Repayment Plan: Most Chapter 13 repayment plans require petitioners to sell assets and pay off debts in a certain order. Your petition might be dismissed if you fail to follow the plan’s specific terms.
- Contempt of Court: The judge might also dismiss your plan if you fail to attend necessary creditor meetings and mandatory hearings. Though you might reschedule or miss hearings for good cause, simply ignoring your obligations will result in plan failure.
- Lack of Documentation: In some cases, failing to submit necessary documents automatically results in dismissal.
- Fraud and Bad Faith: If the evidence indicates you lied about certain assets or made false statements to the court, this may result in both discharge and criminal penalties. The court might also dismiss the plan if the judge determines you’re not acting in good faith to pay your debts.
- Creditor Actions: In many cases, the court will dismiss a plan at a creditor’s request. This may occur if the creditor alleges that you’re not complying with the plan and it is prejudiced by your failures.
If the court dismisses your Chapter 13 repayment plan, your debts are not discharged, and you lose all bankruptcy protections. The automatic stay will be lifted – allowing litigation to proceed – and debt collection efforts may resume.
Options After Chapter 13 Bankruptcy Dismissal in Florence, S.C.
Dismissal generally means a return to your pre-bankruptcy state, and any agreed-upon debt changes are voided. However, you have certain legal options. An experienced South Carolina Chapter 13 bankruptcy lawyer might petition the court to reinstate the plan if you can show ‘good cause’ for your failure. This might include showing why you could not reasonably attend meetings or keep up with payments.
Additionally, law firms that also function as federally designated debt relief agencies might help you negotiate your debts privately, appeal the dismissal, consolidate any remaining debt, or simply refile for bankruptcy. You might immediately refile your petition if it was dismissed without prejudice, but you must wait 180 days to refile after a Chapter 13 dismissal with prejudice.
Don’t Panic: Discuss Your Refiling and Appeal Options with a Dedicated Florence Chapter 13 Bankruptcy Attorney
Filing for bankruptcy is overwhelming, and dismissal can be devastating if you’ve already made significant debt payments. Don’t panic if the South Carolina bankruptcy court dismisses your case. Instead, call our experienced Chapter 13 bankruptcy lawyers today at (843) 679-0077 or connect with our Florence law firm online.
