Sometimes a dismissed Chapter 13 is all your need.
Chuck and Inez came to see me today about Chapter 7 bankruptcy.
I had put Inez in a Chapter 13 in December 2011 when their house was days away form foreclosure. The Chapter 13 was dismissed six weeks later.
BUT, that short Chapter 13 had stopped the foreclose, landed their loan mod application on a different desk, and they got approved for first and second mortgage loan mods by the end of 2012.
They also had three big credit cards that were late–and they came to see me today about what to do with those. Do nothing, I said. Because of the very limited homestead protection in Virginia, a Chapter 7 bankruptcy trustee would take and sell your house to pay for the cards.
Since they haven’t bothered you in nearly two years–and were a couple years behind in 2011–doing nothing is your best plan.
I brag a little that my Chapter 13 dismissal rate is among the lowest here in Northern VA. But sometimes a Chapter 13 dismissal is all the help you need.