What happens if a Chapter 13 bankruptcy case is dismissed?
If a Chapter 13 bankruptcy case is dismissed, several things can happen. First, your automatic stay -- put in place when you first filed -- is no longer in force. That means creditors can once again take action to collect a debt, which can include harassing phone calls and letters, wage garnishment, foreclosures, repossessions, and debt collection lawsuits. You lose your protection from creditors. Next, you may also face new collection activity for any d... CONTINUE READING