Expert: Mark J. Markus- California Bankruptcy Attorney - 10/1/2008

Question
We filed for Ch.13 almost 11 months ago.  our case is not yet confirmed.  the Trustee wants us to pay back 100 percent.  We are over the median income. For 11 months we have paid $1074 the payment the trustee wants is 15oo. now we are behind one month on our mortgage with only the 1074 payment.  If the trustee dismisses our case will we get back the money we paid into it? and how long before the creditors start coming after us again? We have two judgements prior to filing. There is no point in agreeing to an amount higher than we can pay.  Our house is mortgaged for more than we can sell it for and it has and adjustable rate. thinking of just refiling and finding a better lawyer.  Our current lawyer has made many mistakes. Any insight would be helpful.

Answer
If your case is dismissed, then any funds that have not been disbursed to your creditors will either be returned to you or your attorney, depending on the rules of your court.

As for how long it will take your creditors to start "coming after" you again, I obviously can't tell you that.  It depends on the creditor and the collection laws of whatever state you're in.  Once the bankruptcy case is dismissed, they are no longer prohibited from seeking to collect on their debts in accordance with applicable state law.