What are the chances of having a Chapter 13 case reinstated?

Article written by Columbia, SC bankruptcy attorney Daniel Stone

Unfortunately, at some point during a debtor’s Chapter 13 case, there is a chance that your case may be dismissed at some point prior to discharge. As I am often asked by my Chapter 13 bankruptcy clients, what are the chances of the case being reinstated? First, it depends on if the debtor has any prior dismissals and is subject to a dismissal with prejudice. The debtor’s Order will say if the case was dismissed with prejudice or not. As long as it wasn’t dismissed with prejudice, the debtor can file a Motion to Reconsider the dismissal. Please note that the success may depend on which judge is hearing the motion. Below is a set of factors that any of the bankruptcy judges in South Carolina will view as critical to a successful motion:

1. Was the motion timely filed within thirty (30) days of dismissal

2. Is the debtor able to bring the case current with certified funds by the day of the hearing

(Note: Some Trustees may want the funds prior to the hearing)

3. Debtor must sign an Order stating they agree that if their case is ever dismissed, they cannot refile a Chapter 13 for a period of time

4. Some judges may want additional good faith factors presented at Court such as length of payment history of case, reason of dismissal, prior case filings, and any additional good faith factors

5. Debtor must attend the hearing

- Stone Law Firm