Bankruptcy Chapter 13 Gets Dismissed While Deployed

[Wynfrith]

Hello,

my husband is currently deployed and im living overseas. he filed for chapter 13 in 2007 with his his exspouse. well, she has not been making any payments since may 2010 and the bankruptcy case will get dismissed if they dont bring the amount current. there is no way to get in contact with his exspouse and it is very difficult for him to contact the attorney in the U.S. while being in afghanistan. can the deployment stop legal procedures?? does he have to be present while he starts chapter 13 by himself again e.g.??

thanks for the help!!  

[Hagalean]

The obviously quickest way of dealing with the problem is to bring the plan amounts current.  Although the servicemen's civil relief act appears to apply, and this would permit a delay in proceedings to dismiss the case, in the end in order to complete the plan the payments will have to be brought current or your husband would have to make a motion for a "hardship discharge."  The latter is factual intense and I don't have any basis for assisting in determining whether it would apply to his case.

It would be extremely difficult to start up a case by himself from abroad.  However, while he is away, none of his creditors can obtain a judgment against him in a state court, because of the civil relief act.  So, if the case were dismissed, things would just remain in limbo so long as any court where an action was commenced against him were provided proof of his overseas deployment.

Even if your husband has a difficult time communicating with his attorney, you should step in and make sure that the attorney is well aware of the situation, because the attorney owes a responsibility to your husband as his client.  The attorney should be able to use the civil relief act to keep the Chapter 13 from being dismissed until your husband can do something.  The attorney should also be able to give advice about a possible "hardship discharge."

Information on the servicement's civil relief act can be found at http://www.uscourts.gov/FederalCourts/Bankruptcy/BankruptcyBasics/SCRA.aspx

I hope that this information is of use to you.