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Remove a dismissed Chapter 13?

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Regular Contributor

Remove a dismissed Chapter 13?

I filed Chapter 13 on September 11th, 2014.

My case was dismissed in May 2018 due to failure to make payment. (I was unemployed and couldn't make the monthly payment.)

I know it will be falling off of my reports around September of 2021.

 

Is there any way I can get it removed sooner? 


Message 1 of 8
7 REPLIES 7
Established Contributor

Re: Remove a dismissed Chapter 13?

I'm pretty sure when it goes to a dimissed status, then it stays for 10 years just like a 7. Discharged BK 13's fall in 7 years. either way, its not coming off before the time. You can request early exclusions at 6 months form TU, 3 months from EX, and EQ about a month( maybe)

 

 

Started Rebuild 4/2018: EX 616| TU 604| EQ 621

Current 08/13/19:


Goal Score: 750+
Message 2 of 8
Established Contributor

Re: Remove a dismissed Chapter 13?

What's the difference between a dismissed and discharged BK?

I’m probably never finding that garden everyone keeps talking about.



Officially collection free as of 3/19/19!!
STARTING SCORES: 377 (11/2013) & 580 (3/2018)
Message 3 of 8
Established Contributor

Re: Remove a dismissed Chapter 13?


@dynamicvb wrote:

I'm pretty sure when it goes to a dimissed status, then it stays for 10 years just like a 7. Discharged BK 13's fall in 7 years. either way, its not coming off before the time. You can request early exclusions at 6 months form TU, 3 months from EX, and EQ about a month( maybe)

 

 


That’s not correct. Dismissed status does not change the chapter 13 falloff date. I just checked my annual credit report and the fallouff date is 7 years for a dismissed CH13.

 

Also my SO dismissed CH13 fell of last year, 7 years to exactly. Equifax is the only one that does not list the fall off date but that one fell off in 7 years too.

I just returned from financial hell. Don't go, the brochure is a lie.
Message 4 of 8
Established Contributor

Re: Remove a dismissed Chapter 13?


@Queen_Etherea wrote:

What's the difference between a dismissed and discharged BK?


In CH7 discharged means the court ruled in your favor. You are indeed bankrupt and all your debts has been discharged. In a CH13 discharged means you satisfied the terms of the BK by paying back the agreed amount. Dismissed means at some point either by you (voluntarily) or by the court the BK was withdrawn or tossed out. The trustee could file a motion to dismiss if you miss too many payments in 13, or in a 7 or if they deem that you have enough assets/income and you are not actually bankrupt. This is sometimes referred to as “failing the means test”.

 

Since bankruptcies are supposed to be public, the status does not matter when it comes to wether it appears on your credit report.

I just returned from financial hell. Don't go, the brochure is a lie.
Message 5 of 8
Valued Contributor

Re: Remove a dismissed Chapter 13?


@Queen_Etherea wrote:

What's the difference between a dismissed and discharged BK?


Discharged means the debts are no longer legally owed. In the case of ch.13 it is after the repayment terms are met. Dismissed means the debtor is still liable for the debts, and the debts are still legally enforcable. The status of the debts is no longer included in bankruptcy, and the creditors can sue to collect once the creditor receives a judgement. Reasons for discharge are commonly failure to meet the repayment plan, or could even be requested by the debtor if the debtors circumstances changed. The reporting on a credit file, to the best of my knowledge is the same either way, and last I heard was 7 years on chapter 13 and 10 years on chapter 7. The report on the bankruptcy will still show as filed and dismissed. The debts will be collectible unless the chapter 13 is reinstated or converted to chapter 7. This is all true to the best of my knowledge, but I am not a lawyer and you should probably ask your bankruptcy attorney. I have never been involved in a dismissed bankruptcy.

TU fico08=823 08/12/19
EX fico08=813 08/10/19
EQ fico08=826 08/04/19
EX fico09=818 08/03/19
EQ fico bankcard08=849 07/23/19
Message 6 of 8
Valued Contributor

Re: Remove a dismissed Chapter 13?


@Morpho wrote:

@Queen_Etherea wrote:

What's the difference between a dismissed and discharged BK?


In CH7 discharged means the court ruled in your favor. You are indeed bankrupt and all your debts has been discharged. In a CH13 discharged means you satisfied the terms of the BK by paying back the agreed amount. Dismissed means at some point either by you (voluntarily) or by the court the BK was withdrawn or tossed out. The trustee could file a motion to dismiss if you miss too many payments in 13, or in a 7 or if they deem that you have enough assets/income and you are not actually bankrupt. This is sometimes referred to as “failing the means test”.

 

Since bankruptcies are supposed to be public, the status does not matter when it comes to wether it appears on your credit report.


I don't think a means test is needed in a chapter 13, but could be dismissed by the court if it determined that the BK repayment would be too great of a burden to set up a plan such as unemployed with no income to make a payment. Chapter 7 has a means test to qualify, but chapter 13 sets up payments based on the debtors assets and income. A chapter 13 might be dismissed if the court determines that you have enough assets to pay the debts as originally agreed. The court would not protect a million dollars worth of land, for 50 thousand dollars in debt for instance. It can also be dismissed if you made false representations to the court.

TU fico08=823 08/12/19
EX fico08=813 08/10/19
EQ fico08=826 08/04/19
EX fico09=818 08/03/19
EQ fico bankcard08=849 07/23/19
Message 7 of 8
Established Contributor

Re: Remove a dismissed Chapter 13?


@sarge12 wrote:

@Morpho wrote:

@Queen_Etherea wrote:

What's the difference between a dismissed and discharged BK?


In CH7 discharged means the court ruled in your favor. You are indeed bankrupt and all your debts has been discharged. In a CH13 discharged means you satisfied the terms of the BK by paying back the agreed amount. Dismissed means at some point either by you (voluntarily) or by the court the BK was withdrawn or tossed out. The trustee could file a motion to dismiss if you miss too many payments in 13, or in a 7 or if they deem that you have enough assets/income and you are not actually bankrupt. This is sometimes referred to as “failing the means test”.

 

Since bankruptcies are supposed to be public, the status does not matter when it comes to wether it appears on your credit report.


I don't think a means test is needed in a chapter 13, but could be dismissed by the court if it determined that the BK repayment would be too great of a burden to set up a plan such as unemployed with no income to make a payment. Chapter 7 has a means test to qualify, but chapter 13 sets up payments based on the debtors assets and income. A chapter 13 might be dismissed if the court determines that you have enough assets to pay the debts as originally agreed. The court would not protect a million dollars worth of land, for 50 thousand dollars in debt for instance. It can also be dismissed if you made false representations to the court.


yeah, thats what happend. I was making payments and one of the creditors filed a motion that they were not going to be statisfied with the amount at the end of the plan. Judge agreed, and granted motion to dismiss. I could have refiled but choose a different path.

I just returned from financial hell. Don't go, the brochure is a lie.
Message 8 of 8
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