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.

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
How to Reinstate a Dismissed Bankruptcy
 

References

Related articles

How to File for Bankruptcy for a Voluntary Repossession

Other than a house, your vehicle may be the most valuable asset you own, but repossession may seem like your only option when you can’t make your car payments. With repossession, your bank can take your car, sell it and apply the proceeds toward your loan balance. However, bankruptcy may allow you to restructure your loan so you don’t face repossession, and bankruptcy can erase your remaining debt if your vehicle has already been repossessed.

How Long After Filing for Bankruptcy Is the Next Step?

In both Chapter 7 and Chapter 13 bankruptcy cases, the first step after filing the petition and other documentation is the creditors' meeting. Whether the debtor is filing for debt elimination under Chapter 7 or a repayment plan under Chapter 13 affects how many days pass between filing and the creditors' meeting, at which debtors answer questions about their financial situations from their creditors and the court trustee.

Can a Bankruptcy Trustee Block a Discharge?

A bankruptcy trustee is a neutral professional appointed by the federal bankruptcy court to administer your bankruptcy case. The trustee has various roles depending on the type of bankruptcy case you filed, but can recommend dismissal of your case, thereby blocking your discharge, or the elimination of unpaid debts. The trustee is not permitted to give individual legal advice to debtors, so if a debtor does not correctly file his petition, the trustee can ask the court to dismiss the case before it even gets started.

Related articles

What Happens When Chapter 13 Is Dismissed?

Chapter 13 bankruptcy allows you to create a three- to five-year repayment plan to catch up on your debts. If your case ...

What is a Notice of Dismissal of Bankruptcy?

Bankruptcy is a legal process by which debtors may restructure or obtain relief from overwhelming debts and get a fresh ...

How Long Before Debt is Discharged After Bankruptcy?

A bankruptcy discharge is available to you at the completion of your bankruptcy case. Your debt is erased when you ...

What Happens When You Reaffirm a Vehicle After Bankruptcy?

Bankruptcy allows you to get a fresh start financially, clearing up debts by paying some and dismissing others. Filing ...

Browse by category
Ready to Begin? GET STARTED