Chapter 13 Reinstatement After Case Dismissed
It is important that you discuss your current financial situation with your attorney to determine your best options. A good place to begin is explanation of the financial hardship that may have caused your case to get dismissed.
Many factors will play a role in determining your best option. If you have been in your bankruptcy plan for 2 years and have secured debt, such as home or vehicle, then you may want to consider reinstatement of your dismissed bankruptcy case. The decision of reinstatement must be made quickly and the motion filed before the court closes the case. The court closes the files within 10-14 days after dismissal order has been filed. If you have a vehicle or home in jeopardy of repossession or foreclosure then reinstatement may not be the best option for you.
A motion to reinstate must be filed and approved by the Chapter 13 trustee but in the meanwhile you do not have protection of the automatic stay. Auto creditors can repossess your vehicle and are only required by law to hold the vehicle for 10 days. In some cases it can take as many as 23 days before your reinstatement hearing is set and approved by trustee. Therefore your attorney’s office would have not legal means to require the auto creditor to return the vehicle until the case is reinstated.
If you elect to reinstate after dismissal then the primary requirement of the Chapter 13 Trustee is that your bankruptcy plan payments must be current by hearing date. The same is true if your case was dismissed for not providing requested documents. Your would be required to provide the documents before the case can be considered for reinstatement. Consult with your attorney to decide if this is the best option for you.
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