How Long Is an Automatic Stay After a Chapter 13 Dismissal?

By Elizabeth Stock

Filing for Chapter 13 bankruptcy creates a repayment plan that allows you to catch up on debt by making monthly payments over three to five years to a Chapter 13 bankruptcy trustee. However, your Chapter 13 bankruptcy case may be dismissed before you complete your repayment plan for several reasons, including if you fail to make your monthly payments to your Chapter 13 bankruptcy trustee or if you miss a required court appearance. The dismissal of your bankruptcy case has several consequences -- including the loss of the protection of the automatic stay.

Filing for Chapter 13 bankruptcy creates a repayment plan that allows you to catch up on debt by making monthly payments over three to five years to a Chapter 13 bankruptcy trustee. However, your Chapter 13 bankruptcy case may be dismissed before you complete your repayment plan for several reasons, including if you fail to make your monthly payments to your Chapter 13 bankruptcy trustee or if you miss a required court appearance. The dismissal of your bankruptcy case has several consequences -- including the loss of the protection of the automatic stay.

Automatic Stay

Immediately upon filing for bankruptcy, the automatic stay goes into effect. This protects you from harassment by prohibiting your creditors from contacting you directly and suing you while your bankruptcy case is active. Instead, after you file for bankruptcy, all creditors can only communicate with you through your attorney or the bankruptcy trustee. The automatic stay remains in effect from the date that you file for bankruptcy until your Chapter 13 case is completed, which is usually at the end of your repayment plan. If your case is dismissed, however, the automatic stay ceases to offer protection, as of the date of dismissal.

Get a free, confidential bankruptcy evaluation. Learn More
Get a free, confidential bankruptcy evaluation. Learn More
What Happens When Chapter 13 Is Dismissed?

References

Related articles

Can You Reopen a Bankruptcy Chapter 7?

Under Chapter 7 bankruptcy, most of your consumer debts are discharged by a court order within approximately six months from the filing of your petition. This discharge is important because it legally wipes away any claims that creditors have that you owe money on a debt so long as you identified the debt as part of your bankruptcy case. However, if you failed to identify a creditor as part of your case, you may be able to reopen the case under certain circumstances.

How to Reinstate a Dismissed Bankruptcy

At the conclusion of your bankruptcy case, you typically will receive a bankruptcy discharge. A bankruptcy discharge means that all of the debts that are included in your bankruptcy case are erased and your creditors cannot pursue collection action against you to enforce the debts, like filing a civil lawsuit. During the bankruptcy case, you can ask the court to dismiss your case, or the court may dismiss your case on its own, and you will not receive a bankruptcy discharge. However, you can ask the bankruptcy court to reinstate your bankruptcy if it is dismissed by the court.

Bankruptcy Filing Vs. Discharge Date

The bankruptcy filing date is the date when you file the petition for bankruptcy with the court. By contrast, the discharge date occurs toward the end of the process. How long it takes to get from the filing date to the discharge date depends on which type of bankruptcy you file. Chapter 7 is debt elimination and may take only a few months. Chapter 13 involves a debt repayment plan and it may take years until your remaining debt is discharged.

Related articles

How Can I Determine the Date of My Bankruptcy Discharge?

When you apply for credit after completing bankruptcy, such as a home mortgage or car loan, new lenders may want to ...

What Does It Mean if a Bankruptcy Is Lifted?

When an individual debtor files for Chapter 7 or Chapter 13 bankruptcy, creditors must immediately stop their ...

Rules for Filing a Second Bankruptcy

Depending on the type of second bankruptcy you want to file, there may not be a waiting period or a waiting period of ...

Facts About Chapter 7 Bankruptcy

Filing for Chapter 7 bankruptcy is a big decision that will affect your credit score and ability to qualify for ...

Browse by category
Ready to Begin? GET STARTED