What Happens When a Chapter 13 Case Is Dismissed?

When a Chapter 13 bankruptcy case is dismissed, the debtor is no longer protected from creditors and the automatic stay is lifted. This means that creditors can resume collection activities, such as contacting the debtor by phone or mail, garnishing wages, or foreclosing on a home. The debtor may also be liable for any unpaid debts that were included in the Chapter 13 plan. In some cases, the court may order the debtor to pay certain debts in full.

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