Generally, a debtor may dismiss a Chapter 13 case at any time. This can be done in several ways. The debtor can simply stop making plan payments and eventually the Chapter 13 trustee will file a motion to dismiss the case for non-payment. If a debtor wants to quickly dismiss the case, the debtor can file a motion to dismiss the case and the case will be dismissed. If a Chapter 13 case is dismissed prior to a discharge being granted, the debtor will cease to have protection against creditors upon dismissal. If the debtor wants to re-file another Chapter 13 case after the existing case is dismissed there could be complications if the debtor filed a motion to dismiss the case instead of the Chapter 13 trustee filing the motion to dismiss the case. It is important for the debtor to discuss these details with the debtor’s attorney prior to filing a motion to dismiss the case.
Any secured debts (such as vehicle loans) that were being paid through plan will revert back to the original terms of the loan. This usually means that the debtor will immediately be delinquent on those debts because secured debts being paid through the plan are usually paid a monthly payment that is less than the original terms of the loan. If a debtor wants to keep the property, the debtor will usually need to call the creditor directly and work out new terms if the creditor is willing. If the creditor is unwilling to work with the debtor, the creditor may repossess the property.