Q: Can we cancel our bankruptcy filing? Our income has increased. Our plan will be confirmed soon.
Our plan will be confirmed soon. My lawyer has not contacted me to modify the plan. It is affordable to us now. Our income has increased but we have expenses for our two children in college. We have never qualified for Parent Loans in previous years but this year we did which caused the kids to not be able to apply for more student loans in their name. We need room in our plan to repay the loans since they start right away. Is cancelling the bankruptcy an option? If so, will our debtor's work with us on repayment plans?
A: Obviously, you should talk to your bankruptcy attorney first. However, you can dismiss your chapter 13 at any time. When a dismissal occurs, all of your old creditors that have been stopped by the automatic stay will resume their collection activity. You can try to work something out with them, but there is no guarantee you will like the payment terms the offer. If you have financed vehicles in the chapter 13, they finance company may want the vehicles back or a lot of cash to cure the default. Again, speak to your attorney about the consequences of dismissal.
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