What Happens When a Chapter 13 Case Is Dismissed?
When a Chapter 13 bankruptcy case is dismissed, the debtor is no longer protected from creditors and the automatic stay is lifted. This means that creditors can resume collection activities, including wage garnishment, foreclosure, and repossession. The debtor may also be responsible for any unpaid balances on debts that were included in the Chapter 13 plan. In some cases, the court may order the debtor to repay certain creditors in full.
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