Bankruptcy – Can I Quit Chapter 13 in Georgia if I Don’t Like The Way Things Are Going?
If you are in a Chapter 13 case in the Northern District of Georgia, you can dismiss your case at any time. Your attorney will file a document with the court called a voluntary dismissal.
Personally, I think it is a terrible idea in most cases to voluntarily dismiss a Chapter 13 bankruptcy. First, you might be banned from refiling a case for a period of six months if you voluntarily dismiss your Chapter 13 after a Motion for Relief has been filed. Here is an example of a nightmare scenario. A person living in Dalton, Georgia has a house and misses six mortgage payments while the case is active. This person then decides to quit their Chapter 13. Unfortunately, the mortgage company files a Motion for Relief exactly one second before the voluntary dismissal is entered. Mortgage company then proceeds to begin foreclosure proceedings in Dalton, Georgia. This person then decides to refile a Chapter 13 to save the Dalton house from foreclosure. Under Section 109(g) of the Bankruptcy Code, this person cannot refile their Chapter 13 bankruptcy case for a period of 180 days from the date of the voluntary dismissal. In other words, goodbye house.
Another reason to stay with your Chapter 13 is that if you dismiss your case, any creditor that was garnishing your wages is free to restart the garnishment as soon as your case is dismissed. If you throw in a Section 109(g) limitation on your ability to refile and you could be in for a painful six months.
Also, if you dismiss your Chapter 13, your car creditor is free to come and repossess your vehicle as soon as your case is dismissed. All of your bankruptcy protection ends as soon as your case is dismissed.
Any person who is wishing to voluntarily dismiss their Chapter 13 should meet with an attorney and have her go over every single aspect of their case so that there are no unpleasant surprises.
In contrast to Chapter 13, a person in a Chapter 7 bankruptcy cannot quit the case without permission from the Bankruptcy Court.