A Chapter 13 bankruptcy offers you the ability to pay off debts over a three- to five-year period. After filing for Chapter 13 bankruptcy you reach a juncture at which canceling or terminating the case is advisable from your perspective. A specific process under the U.S. Bankruptcy Code permits you to cancel or terminate your Chapter 13 bankruptcy case.
Obtain a motion to dismiss form from the bankruptcy court clerk. The bankruptcy court clerk maintains basic forms necessary to start, maintain and even dismiss a bankruptcy case.
Complete the motion form. The document is not complex. You insert the basic information about your case--case caption and case number. Set forth the specific reason for seeking a dismissal in the space provided.
File the motion with the bankruptcy court clerk.
Send a copy of the motion to all creditors.
Deliver a copy of the motion to the Chapter 13 bankruptcy trustee assigned to your case. The trustee is the court official who oversees your case on a day-to-day basis.
Obtain the hearing date set by the court on your motion. The bankruptcy court clerk provides this information. Provided there are no objections to the dismissal, the court will dismiss your case on the date set for the hearing on your motion. If there are objections, those concerns will be brought before the court on the date of the hearing. The court decides whether the objections have merit and renders a decision to continue or cancel your case accordingly.
- Canceling or terminating a Chapter 13 bankruptcy opens the door for creditors to pursue you directly. Be ready to deal directly with your creditors.
- Consider contacting an attorney to analyze whether canceling or terminating a Chapter 13 bankruptcy is in your best interests. Local and state bar associations maintain directories of attorneys in various practice areas. Contact the American Bar Association for information on these organizations:
- American Bar Association
- 321 N. Clark St.
- Chicago, IL 60654-7598
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