Get the facts on how to object to a Chapter 13 motion to dismiss in Kentucky.
Chapter 13 bankruptcy is a bankruptcy procedure intended for individuals or small businesses who are struggling financially to repay their debts over time. Also known as the wage earner’s bankruptcy, this involves a debtor submitting a proposed repayment plan to bankruptcy court and then being given a period of three or five years to repay everything and be discharged of their debts. If you are facing bankruptcy, it is important to understand how to object to a Chapter 13 motion to dismiss in Kentucky.
You might be wondering, “how can I object to a chapter 13 motion to dismiss in Kentucky?”. Note that in this case, it is possible to default in making Chapter 13 bankruptcy payment plan payments due to a myriad of reasons. Your inability to keep up with payments could force the bankruptcy trustee or at least one of your creditors to take action. This is where knowing how to object to chapter 13 motion to dismiss in Kentucky will benefit you.
Don’t go through the intricacies of bankruptcy on your own. Enlist the help of a seasoned bankruptcy attorney from Farmer and Wright, PLLC. An attorney adept in the practice area can walk you through the entire bankruptcy process and help you learn how to object chapter 13 motion to dismiss in Kentucky. Schedule a free consultation and get debt relief right now.
What is a Chapter 13 motion to dismiss?
Once you start falling behind in making payments to your Chapter 13 plan, one of your creditors or the bankruptcy trustee can file a written motion to have your case dismissed. Fortunately, the Kentucky bankruptcy court will allow you to oppose this motion. Knowing how to object to chapter 13 motion to dismiss in Kentucky lets you swiftly take action to make sure your case doesn’t get dismissed without a discharge.
But first, you must get an idea of why a Chapter 13 bankruptcy case may get dismissed and what happens if it does.
What are the common reasons for a dismissed Chapter 13 case?
The Paducah, KY bankruptcy court can dismiss a Chapter 13 case for multiple reasons. Below are the most common ones:
- Not paying the Chapter 13 plan
- Not meeting specific deadlines
- Not filing tax returns every year and not submitting a copy to the Chapter 13 trustee
- Failing to submit the necessary paperwork to the trustee
- Failing to propose a Chapter 13 repayment plan in accordance with the bankruptcy law
Taking immediate action is necessary to prevent having your Chapter 13 bankruptcy case dismissed. Failure to do so may require knowing much more than how to object to chapter 13 motion to dismiss Kentucky.
If “how can I object to a chapter 13 motion to dismiss in Kentucky?” is a pressing question in your mind, touch base with a skilled Paducah, KY bankruptcy attorney who can help you obtain debt relief and build your life again.
What happens if my Chapter 13 case gets dismissed?
The dismissal of your Chapter 13 bankruptcy case ends it. When this happens, the automatic stay also ends and your creditors can resume collecting debts from you directly. A dismissed Chapter 13 case, unfortunately, won’t get rid of anything you owe unless a discharge has been granted prior to the dismissal. It only means that you need to start the bankruptcy process all over again.
Responding to the motion to dismiss promptly is the key to not having to start from scratch. Speak with your attorney to get reliable information on how to object to chapter 13 motion to dismiss Kentucky.
How Can I Object to a Chapter 13 Motion to Dismiss?
Not doing anything to oppose a motion to dismiss filed by the bankruptcy trustee or a creditor will allow the court to dismiss your case without a discharge. If you don’t want this to happen, make sure to object to the motion to dismiss within 21 days of its submission. Otherwise, the court will dismiss your case and you will have to restart the entire process or resort to a different means to attain debt relief.
To object to the motion to dismiss your Chapter 13 case, you should first carefully read the motion filed against you. Then, you must appear before the court where you will explain why your case should not be dismissed. During this process, the bankruptcy court will ask for proof that you’re still able to afford to make payments to your repayment plan once your objection to the motion is approved.
However, if the bankruptcy court isn’t convinced that you’re capable of continuing to make payments to your Chapter 13 plan, your case will be dismissed. When your objection to the motion to dismiss the Chapter 13 case is unsuccessful, here are other ways to approach this situation:
Ask for a hardship discharge
You have the option to file a motion asking for a hardship discharge. Apart from providing proof of hardship, you can receive a bankruptcy discharge if you meet specific criteria including:
- Inability to pay due to circumstances you can’t control
- Inability to find a feasible way to modify your plan
- All unsecured creditors have been paid the amount they would have received under Chapter 7 bankruptcy
Modify your repayment plan
If your inability to keep up with making Chapter 13 payments is due to unforeseen changes in your financial situation, you can modify your plan by asking to pay a lower monthly amount. Take note that you should be up to date with payments on certain taxes, mortgages, and other legal obligations, while also capable of paying the monthly minimum to be eligible.
Refile your case or convert it to a different chapter
Starting fresh is another option worth considering. You may file for Chapter 13 bankruptcy again immediately after a dismissed case (if without prejudice) but possibly with a shorter automatic stay. Your petition for a new Chapter 13 case may get denied if you had multiple bankruptcy cases within a brief time frame.
Additionally, you can also choose to convert your Chapter 13 case to Chapter 7 where you won’t need to make monthly payments to your creditors. However, you might lose multiple nonexempt properties during this process so speak with your Kentucky bankruptcy lawyer to see if going this route makes sense.
Allow your case to be dismissed
If you think it would be better to not continue with a Chapter 13 case, then you can choose to do nothing to oppose the motion and allow the court to dismiss your case. You may only use this approach if your financial situation has improved to the point when you’re able to repay your creditors without needing bankruptcy protection or if you have a guaranteed backup plan.
Call a Pacuah, KY bankruptcy attorney immediately!
If you need help on how to object to a chapter 13 motion to dismiss in Kentucky, know that a bankruptcy attorney is willing to help. Filing Chapter 13 bankruptcy can give you a clean slate without giving up any assets. Our experienced bankruptcy attorneys at Farmer & Wright PLLC will analyze your situation and determine whether Chapter 13 or Chapter 7 will work best for you.
Give our law office a call right away to receive a free consultation! If you need help with other practice areas, we also provide excellent legal services in Personal Injury, Disability Claims, and Immigration.