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Ask Terry L. Your Own Question
Terry L.
Terry L., Attorney
Category: Bankruptcy Law
Satisfied Customers: 2870
Experience:  Better Business Bureau. 18yrs bankruptcy experience. Chicago Bar Assoc. American Bankruptcy Institute member.
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I am a creditor in a bankruptcy case. The debtors filed a

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I am a creditor in a bankruptcy case. The debtors filed a No Asset CH 7 Bankruptcy and were DISCHARGED on 11/21/12. They then filed a CH 13 Asset Bankruptcy on 01/30/13; the case is still pending. The CH 13 has filed a Motion to Dismiss the newest Bankruptcy case because debtors did not appear for the 341 hearing and did not make the initial plan payment at the 341 hearing.

Here are my questions:

1. WHY are debtors able to file a CH 7 No asset Bankruptcy case, receive a discharge, and thereafter file a CH 13 Asset Bankruptcy case 2 months later?

2. If the current CH 13 case gets DISMISSED, where does that leave me as a creditor in terms of collecting my debt, since debtors were DISCHARGED in the CH 7 case?

I'm VERY CONFUSED.

Terry L. :

Hi, thanks for your question. You should hire a lawyer for specific legal advice. No attorney client relationship is created here.

Terry L. :

A Debtor can file a chapter 13 after the chapter 7, however, the debtor cannot get a discharge in a case filed within 4 years of a chapter 7.

Terry L. :

SO, they can file it, to pay down mortgage arrears, consolidate other debts that weren't discharged in the 7 etc.

Terry L. :

If your debt was discharged in the chapter 7, that's it you are done. You cannot collect, no matter what happens in the chapter 13 case.

Terry L. :

The chapter 7 discharge is still valid.

Customer:

Thank you so much. You are very clear with your answer. I appreciate it!

Terry L. :

great. sorry its not better news

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