What Happens If My Chapter 13 Case Is Dismissed?
Chapter 13 dismissal is serious — it ends your protection immediately. Learn what causes dismissal, what happens after, and how to refile or recover.
If your Chapter 13 case is dismissed, all bankruptcy protections end immediately. The automatic stay lifts, and creditors can resume collection actions — including foreclosure, garnishment, and repossession — right where they left off. Acting quickly is essential.
Common Causes of Chapter 13 Dismissal
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Missing plan payments (most common)
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Failure to make ongoing mortgage or car payments outside the plan
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Not filing required tax returns or providing documents to the trustee
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Failure to attend the 341 meeting of creditors
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Trustee's objection to plan confirmation that isn't resolved
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Voluntary request to dismiss the case
What Happens the Day Your Case Is Dismissed
The automatic stay lifts immediately upon dismissal. Your mortgage lender can resume the foreclosure process. Creditors can restart garnishment. Collection calls resume. There's no grace period.
Your Options When Dismissal Is On the Table
Option 1: File a Motion to Reinstate
If dismissal was based on a curable issue (missed plan payments you can now catch up), you may be able to ask the court to reinstate your case and keep your filing date.
Option 2: File a New Case
You can refile, but be aware of repeat-filer restrictions. If your case was dismissed within the past year, the automatic stay in a new filing lasts only 30 days unless you obtain a court order extending it.
Option 3: Convert to Chapter 7 Before the Case Is Dismissed
Two situations put this on the table. The first is when the court denies confirmation of your plan and does not give you leave to amend it, which means Chapter 13 has run out of road. The second is when the trustee files a motion to dismiss your case. In both situations your case is still open, and while it is open you have the right to convert to Chapter 7. That timing is the whole point. Converting before a dismissal is entered keeps you inside the bankruptcy, where letting the case go to dismissal ends your protection and leaves you starting over with a new filing. If your income and circumstances mean you qualify for Chapter 7, converting is often the cleaner exit. Chapter 7 resolves faster, but it protects secured property like a house or car far less than Chapter 13 does.
Protecting Your Home After Dismissal
If foreclosure was stopped by your Chapter 13, dismissal restarts the clock. Lenders can move quickly. If keeping your home is the priority, you need to act within days of dismissal — either through reinstatement, refiling, or a direct lender negotiation.
Maryland-Specific Insight
In the District of Maryland, the court may provide an opportunity to cure a plan default before formal dismissal in some cases. Having an attorney who monitors your case and responds to trustee notices is crucial to avoiding dismissal in the first place.
Reality Check
Chapter 13 dismissals are more common than people realize, and they're often preventable with proactive communication with your attorney. The solution to most plan issues exists — but only if you address them before they escalate to dismissal.
