Chantilly, VA asked in Bankruptcy for West Virginia

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.

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1 Lawyer Answer
W. J. Winterstein Jr.
W. J. Winterstein Jr.
  • Bankruptcy Lawyer
  • Boyertown, PA

A: 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

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