Q: If a cram down in paid in full during a Chapter 13, is the loan considered paid upon a dismissal of Chapter 13?
In my Chapter 13 I had a cram down on one of my vehicles. While in the plan, the amount agreed to was paid in full. About a year later, I voluntarily dismissed my Chapter 13 and wanted to know where that vehicle stands as far as being paid off or not.
In a Ch. 13 proceeding, an Order of general discharge is entered upon completion of the confirmed Plan. If you dismissed before that time, no Discharge of debt was entered. As a result, upon dismissal, you were returned to the position you were in immediately prior to the filing of the bankruptcy, as if the bankruptcy had never occurred.
As a result, because the crammed down vehicle loan was not the full amount, you still owe the unpaid balance. The same is true of any other debts partially paid during the pendency of your bankruptcy case.
Timothy Denison agrees with this answer
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.