| Chapter 13 is voluntary and can be dismissed at any time. Several problems kick in when you excerise this option: you lose the automatic stay, creditors can come back on you for late fees, over the limit charges, finances charges, and foreclosures and judgements once again become a threat. If you were paying only a fraction of unsecured, it becomes 100%+ once again, just as though you'd never filed. And, depending on the circumstances, you may not be eligible to re-file Ch13 for 6 months.
You will still have BK on your record for 7 years and all the credit problems associated with that. Of course, the account balances would be reduced by the amounts you paid through the plan.
If your term was something less than 60 months, you can request an plan extension from your trustee stating the hardships causing your financial problems. If your hardship is significant, he may grant you a discharge. Don't miss trustee payments without a reason, and if you have reasons discuss them with your attorney or trustee to see what can be done.
You've bit the bullet when you filed, and it was probably the best thing you could do to correct a bad situation. It will follow you for the next 7 years, so you may as well try to make it work.
Plans have been known to be modified because of changes in income or reasonable living expenses. Another option would be to convert to a Chapter 7 if you can't adequately fund a Chapter 13. | 
02-24-2003, 10:43 PM
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