Re-filing a Chapter 13 Case
Aurora Illinois Bankruptcy Lawyers & Attorneys
David Siegel: I don't want to scare people. Chapter 13 works well for a lot of people but you want to meet with an Aurora bankruptcy attorney and see what your likelihood is based on your budget and based on your assets and based on your debt.
Jesse Barrientes: And you really want to try. You don't want to – you want to represent all of your information to the bankruptcy attorney so he can make that – or she can make that determination and plug everything in and exactly see where you're at.
David Siegel: Yes. I have a lot of respect for clients who give it that college try, who don't want to wave the white flag and surrender. They don't want to give up their home if they're close to being paid, you know, in terms of the arrearage. So I give a lot of respect to clients who give it a try. Unfortunately, people lose their jobs in the midst of a Chapter 13. People become divorced in the midst of a Chapter 13. Things happen over three to five years. Three to five years is a long time.
Five years ago this Isabella here wasn't a part of my life. So things change – I say that to say 'cause I didn't think I'd ever have a dog and so things change, Jesse. Three to five years is a long period of time so you want to be very careful that you go into a Chapter 13 with an open mind that, hey, maybe this might fail and you want to have some back up options.
Jesse Barrientes: Well, let me ask you this. I mean things do definitely change. But what happens in the course if it's dismissed because you haven't paid and so basically now all the creditors come after you. What happens to the amount of money that you've paid into the plan?
David Siegel: Well, it does get applied to your creditors whatever you paid in. And, again, the credit cards are gonna get paid last. So it's quite likely that a lot of your creditors that are the most aggressive in terms of collection –
Jesse Barrientes: Which are the unsecured.
David Siegel: – haven't got paid. But the good news, Jesse, you can take a second bite at the apple typically and try Chapter 13 once again. And that's called re-filing.
Jesse Barrientes: Well, are there any downsides to that? So let's say I couldn't make my plan payment because something happened. It was a change. I had a problem with my job and I either got laid off or I had to take lesser paying position in order to still be employed. And then now I find myself in a position like you were saying earlier that, "Hey, listen. That changed. Now I'm back. I've got a better job and I'm making more money."
David Siegel: Well, sometimes you can petition the court for a modification based on your circumstances. So it really depends but often times, you know, you're just – you're gonna have to re-file.
Jesse Barrientes: Well if I re-file what – are there any downsides? Do I lose any protection? Can – or is it just exactly the same as I filed the first time?
David Siegel: For the most part it's gonna be the same. The attorneys have to do a special motion to extend the protection if you were dismissed within one year. But the real downside is you're gonna have to take the credit counseling again. You're gonna have to pay the filing fee again.
Jesse Barrientes: Everything again?
David Siegel: Everything again. It's a brand new case. It's Groundhog Day, Jesse. It's Bankruptcy 101 over again under Chapter 13 but once you do what you have to do you really are afforded a second attempt to make your repayment plan so it is a great thing to be able to do that and try and save yourself under another Chapter 13 bankruptcy case in Aurora.
Back to Aurora Illinois Bankruptcy Lawyers & Attorneys
See Also:
Chapter 7
Misconceptions about Chapter 7
Life after Chapter 7 bankruptcy
Privacy is protected in bankruptcy
Household income qualifications
Converting Chapter 13 to Chapter 7
Converting Chapter 7 to Chapter 13
Chapter 13
Using Chapter 13 to save a home
Choosing Chapter 13 versus Chapter 7
Debt consolidation & late fees
Administrative fees & the bankruptcy trustee
Chapter 13 payment plan dismissal
