Legal Question in Bankruptcy in California

Re: Chapter 13

You can request a dismissal of your chapter 13 pursuant to 11 USC � 1307. That requires a notice of motion and motion, and hearing on the motion. I am not sure what benefit, however, that will provide you. You can seek a reduction in your chapter 13 plan payments based upon changed circumstances. You can also seek to convert the case to chapter 7 and have the debts discharge, if you otherwise qualify. Dismissing the Chapter 13 may not be the best course of action as the bankruptcy has already hammered your credit report - it will be there for 10 years regardless of whether it is dismissed or not. Second, your debts have probably "accelerated" as a result of the bankruptcy filing, so if you dismiss your case, the creditors will probably take the position that you owe the full amount immediately, plus interest accrured while in bankruptcy, attorneys fees and costs. I don't know how much negotiating they will do with you after the bankruptcy is dismissed. I would seek a plan payment reduction before you consider dismissing the case.

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