Dismissal or Conversion in an Unsuccessful Chapter 13 Plan
If the Trustee files a motion to dismiss for failure to
make plan payments, you may be able to modify your plan by
increasing the length of the plan and thereby reducing the
monthly payments. Sometimes the Trustee will allow you to
pay an extra sum in addition to your plan payment to catch
upon the arrearage. However, the Trustee will usually have
a provision in the agreed order that states that if you
miss or are late with one payment, the case will get
dismissed.
If your case is dismissed, you may be able to file a second
chapter 13 plan. Keep in mind, if your situation is the
same, there’s no sense in re-filing a case that didn’t work
the first time you did it. Also, under the new bankruptcy
laws, the automatic stay will only be in effect for thirty
days, so you must file a motion to extend the stay and have
a hearing. The bankruptcy judge will want to know why this
case is different from the last one. You have to attend
this hearing and tell the judge why you think this plan
will work. So the circumstances should be different than
the first time you filed. For instance, your first plan got
dismissed for failure to make payments, but now you got a
second part-time job on the weekends and have an extra
$600.00 per month.
