topic Re: Debating a Chapter 13 Dismissal... in Bankruptcy

Debating a Chapter 13 Dismissal...

Durango23 — Wed, 26 Mar 2025 02:17:57 GMT

Hi, I am about 14 months in on my Chapter 13 case (100% plan), filed in Ohio. the trustee fees recently increased and I am paying the trustee $383 a month for their fee with an estimated 40 months remaining in my case.

My main questions are:

1) How likely/probable is it that all the creditors will pursue aggressive collection efforts against me if my case is dismissed? I expect creditors where i still owe a good amount (over $2,000) will pursue recovery efforts, but will the smaller balance creditors invest in collection/recovery efforts for that small of a balance?

2) Have people had success post-dismissal settling balances with creditors? (I understand the 1099 tax implications with settling)

3) Have creditors that did not file a claim at the beginning of the case now all of a sudden start collectiong on that debt post-dismissal?

A list of balances owed is below, all 28 are unsecured debts, I paid my mortgage and auto outside of the bankruptcy.

	Paid in BKO	Claim Amount	Balance Remaining
Creditor 1	$11,295	$45,359	$34,065
Creditor 2	$6,279	$25,216	$18,937
Creditor 3	$4,393	$17,643	$13,250
Creditor 4	$4,380	$17,592	$13,211
Creditor 5	$2,726	$10,948	$8,222
Creditor 6	$2,671	$10,728	$8,057
Creditor 7	$2,104	$8,448	$6,344
Creditor 8	$1,946	$7,815	$5,869
Creditor 9	$1,913	$7,682	$5,769
Creditor 10	$1,610	$6,465	$4,855
Creditor 11	$1,573	$6,316	$4,743
Creditor 12	$1,267	$5,087	$3,820
Creditor 13	$1,128	$4,531	$3,403
Creditor 14	$929	$3,732	$2,803
Creditor 15	$759	$3,047	$2,289
Creditor 16	$743	$2,984	$2,241
Creditor 17	$721	$2,895	$2,174
Creditor 18	$688	$2,762	$2,074
Creditor 19	$647	$2,598	$1,951
Creditor 20	$638	$2,561	$1,923
Creditor 21	$488	$1,959	$1,471
Creditor 22	$484	$1,944	$1,460
Creditor 23	$299	$1,199	$901
Creditor 24	$173	$755	$582
Creditor 25	$158	$689	$531
Creditor 26	$85	$403	$318
Creditor 27	$82	$387	$305
Creditor 28	$21	$85	$64
Total:	$50,199	$201,832	$151,633

Re: Debating a Chapter 13 Dismissal...

Horseshoez — Wed, 26 Mar 2025 03:10:56 GMT

@Durango23, I have read numerous anecdotal accounts here and elsewhere which indicate the likelihood of a creditor coming after you following a dismissal is, if anything, higher than it was before you filed. Junk debt buyers bet a certain percentage of the debt they buy which is stayed under a Chapter 13 will get dismissed, and when it is, they pounce, not only on the outstanding debt, but also on the interest accrued since the stay went into effect.

Trust me, I know well how hard it is to get through a Chapter 13, been there, done that, got the freakin' tee-shirt; but as hard as it is, it can be even harder after a dismissal, especially for folks like you and me who filed for protection for well over six figures of debt.

Re: Debating a Chapter 13 Dismissal...

TRC_WA — Wed, 26 Mar 2025 20:02:59 GMT

I definitely wouldn't recommend it. For that amount they'll likely come after you hardcore.

Trustee fees? What is that? $383 month is insane. 40 months is like $15k?!?!? I don't recall anything even close to that on my 2017 Ch 13.

Re: Debating a Chapter 13 Dismissal...

Durango23 — Tue, 01 Apr 2025 20:01:58 GMT

I appreciate the response. Yes, apparently the fees recently increased due to macroeconmic factors, and per my attorney, are still below the maximum that the Ohio bankruptcy code allows fees to be. Looks like i'll be continuing the current plan and not seeking dismissal based on the research and feedback. Thanks again for your reply.