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When a Chapter 13 case is dismissed, it is, in the view of the court, as though the bankruptcy filing never existed. The automatic stay that had protected the debtor is lifted; creditors may pounce immediately, with results that include: Collections letters.

To add debt to Chapter 13, the debtor must motion the court to modify their repayment plan. Once your lawyer files the motion, you must show you cannot pay the new debt outside of the plan. Additionally, adding the new debt cannot negatively impact the current creditors.

You don't have an automatic right to amend your paperwork after the bankruptcy court issues a "discharge" erasing qualifying debts and closes your case. You'll need to file a motion asking the bankruptcy court to reopen your matter and allow an amendment. The steps involved vary depending on your jurisdiction.

Your lawyer can help you report the income change to the trustee. If income increases aren't reported, the trustee can have your Chapter 13 case dismissed, meaning your debts would not be discharged. In some cases, people have been charged with the crime of bankruptcy fraud for not reporting income increases.

Once you file for bankruptcy, you cannot simply withdraw your bankruptcy petition as if you never filed it in the first place. The bankruptcy stays on your record. However, you can withdraw from the bankruptcy process by obtaining a dismissal.

In most instances, debtors can request a voluntary dismissal of Chapter 13 cases because a reorganization is voluntary. The courts do not force debtors to reorganize their debts through a bankruptcy plan. However, you need to consider the consequences of your decision to dismiss a Chapter 13 bankruptcy case.