The Potential Outcomes Of A Bankruptcy Filing

Are you planning to file for Chapter 13 bankruptcy in the near future but are unsure of what can potentially happen as a result? Chapter 13 bankruptcy is a reorganization of your debts, and it helps stop creditors from coming after you while you figure things out. Here are three of the potential outcomes that can happen after filing.


It's possible that your bankruptcy filing never makes it to the very end because you or another person files a motion to have the bankruptcy dismissed. A common reason this happens is that you are not making the regular payment to your bankruptcy repayment plan, and the trustee files a motion for dismissal based on non-payment. This won't happen automatically at the first missed payment, but it can happen if you are struggling to make those monthly payments.

There are also a variety of other reasons why a dismissal can happen. These include missing deadlines throughout the process, not attending required financial courses for the bankruptcy filing, and not paying the court fees. In general, the bankruptcy is dismissed when the proper procedure and requirements are not followed.


If you complete your bankruptcy repayment plan, you'll then receive an order from the court saying that your debts have been discharged. All of your remaining debts will be wiped away, which includes those credit card bills, medical bills, and other debts that qualify under Chapter 13 bankruptcy. As long as the debt qualifies and was listed with the bankruptcy filing, it will be discharged after the final payment is made. 

A discharge also prevents those creditors from contacting you about the debt that you once owed. You will no longer legally hold the debt and are free of any responsibility to pay it back.


It's also possible for a Chapter 13 bankruptcy case to be converted to a Chapter 7 bankruptcy. If you meet the qualifications for Chapter 7 bankruptcy and go through the entire process, you will then receive a Chapter 7 discharge order from the court. 

A conversion will typically happen if you attempt the Chapter 13 repayment plan and find you are unable to make those payments due to a change in your financial circumstances. However, another reason for a conversion is if you no longer want to keep assets that you are paying for in a Chapter 13 repayment plan. If you decide that you want to let go of those assets, it may be better to convert to a Chapter 7 and focus on discharging your unsecured debts instead.

Contact bankruptcy lawyers in your area to learn more.