If you file a Chapter 13 case that is dismissed, can you file another Chapter 13 case afterward to save your house? In re Bieniek, Case no. 16-62113 (Bankr. N.D. Ohio, November 22, 2016) the Bankruptcy Court said yes, under some circumstances. In that case the homeowners filed a Chapter 13 case in 2007. They successfully completed their Chapter 13 plan in 2012 and received a discharge. Subsequently, the husband lost his job and the homeowners fell behind on the mortgage payments. The husband found another job and they filed another Chapter 13 case in 2014 to save their house, but then the husband lost his new job in August of 2016 and their Chapter 13 case was dismissed. Once again the homeowners fell behind on their mortgage payments.
After the dismissal, the husband found another job, and the homeowners filed a third Chapter 13 case on October 12, 2016. The mortgage creditor objected to the homeowners’ third Chapter 13 bankruptcy case, arguing that it was filed in bad faith and the foreclosure on the house should proceed. The homeowners argued that their circumstances had changed and that they had filed their third Chapter 13 case in good faith and would be able to make their plan payments and complete their plan. The Court agreed, finding that the homeowners were now both employed and their income was greater than it was when they successfully completed their first Chapter 13 plan in 2012. Thus, the homeowners were allowed to proceed with their third Chapter 13 case and the foreclosure on their home was stopped.
This result was based on the facts of this particular case and may not apply in all cases. However, under some circumstances, it is possible to successfully file a Chapter 13 to stop a foreclosure after dismissal of a previous Chapter 13 case. If you are considering a Chapter 13 bankruptcy as an option, contact Columbus, Ohio lawyer, Mina Nami Khorrami, for a free initial consultation to discuss your case in more detail.