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Q:
What would a dismissal mean at this point of the bankruptcy?

We are one payment away from ending our 49 month plan with Chapter 13 bankruptcy. However, I was just informed that we were to have this paid off 4 months ago. While the motion to dismiss our case has not been issued, they have told us that if we make our final payment by the end of this month that we will be okay. We have been paying $500 a month for 49 months and are 1 payment away from having it paid off. What would a dismissal mean at this point of the bankruptcy? Our creditors should have been paid by this point. -Andy

Dear Andy,

The purpose of a Chapter 13 bankruptcy is to restructure your debts. It sounds like you have been diligent about making your payments on time and as agreed. If you have paid off your creditors through Chapter 13, the creditors who were included in the plan can not ask you to pay any more towards the debt. Otherwise, why would you have filed in the first place?!

For further information or clarification, you will need to check with your attorney or the bankruptcy trustee.

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