What Happens When a Chapter 13 Case Is Dismissed?

When a Chapter 13 bankruptcy case is dismissed, the debtor is no longer protected by the automatic stay. This means that creditors can resume collection activities, including wage garnishment and foreclosure. The debtor may also be liable for any unpaid balances on secured debts, such as a car loan or mortgage. In some cases, the dismissal of a Chapter 13 bankruptcy may also result in the loss of certain property, such as a home or vehicle.

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