Chapter 13 Bankruptcy Dismissal in Tennessee: What to Expect? 2025

When you must file for bankruptcy, it may be because you have exhausted all other options when it comes to being able to repay your debts. It’s understandable to feel apprehensive about filing for bankruptcy, but an experienced bankruptcy lawyer can help you figure out a plan that will work for you. However, there is always the possibility that your bankruptcy case could be dismissed. Understanding Chapter 13 bankruptcy dismissal in Tennessee may be important. Kerney Law Firm is here to provide guidance and support throughout every stage of your bankruptcy process.

When you decide to file for Chapter 13 bankruptcy, it may be wise to have an experienced bankruptcy lawyer by your side throughout the entire process. They can help you prepare the right documentation, develop a repayment plan that works for you, and ensure that nobody tries to take advantage of your position as you move towards clearing your debt. The last thing you want is for your petition not to go through because you missed a crucial step in the process.

What to Expect from Chapter 13 Bankruptcy Dismissal in Tennessee

According to statistical data gathered by the United States Bankruptcy Court, Eastern District of Tennessee, chapter 13 bankruptcy filings are common in the state of Tennessee. In 2024 alone, there were over 3,000 filings. So far, in 2025, there have been around 1,500. It’s not uncommon to feel like filing for bankruptcy is a last resort you don’t want to have to do. If you desire additional financial counseling, you may want to reach out to a group like the Financial Empowerment Center (FEC).

In certain cases, Chapter 13 bankruptcy cases may be dismissed. When this happens, it doesn’t eliminate your debt. It ends your case, causing you to lose the protection granted by the automatic stay. This means that your creditors can start pursuing you again by garnishing your wages, seeking a foreclosure on your home, or taking legal action against you for debt collection. Any payments you’ve made thus far will not be refunded. Your remaining debt goes back to what it was.

Additionally, this bankruptcy dismissal will show up on your credit report and can lower your credit score. It may be possible for you to file for bankruptcy again, but now your options may be limited, thanks to the initial dismissal. The bankruptcy court has the power to dismiss your case if you fail to meet the required criteria for Chapter 13 bankruptcy. You can also volunteer for dismissal yourself, which means you decide to end your Chapter 13 plan.

Why Would Your Case Be Dismissed?

Unfortunately, there are a number of reasons why your Chapter 13 bankruptcy case would be dismissed. Generally, they are a three-to-five-year commitment, but since they are voluntary, you can exit your plan at any time through voluntary dismissal. There may even be instances where your case is dismissed due to circumstances that are entirely out of your own control. Here are some of the most common reasons why someone’s Chapter 13 bankruptcy case would be dismissed:

• Missed payments. One of the most common reasons for a Chapter 13 bankruptcy case to be dismissed is missed payments. The entire point of filing for bankruptcy is to put your debt on hold and give you the time you need to make payments on it, which then chips away at your outstanding debt. If you fail to make the payments, that can give the court cause to end your case. You need to make your payments on time every time.
• Failure to attend hearings. You are required to attend every single one of your Chapter 13 hearings. If you miss any, you may give the court the opportunity to end your case.
• Failure to attend courses. You are also required to attend several mandatory bankruptcy courses that explain to you the basics of Chapter 13 bankruptcy. If you don’t complete the courses, the court may view this as evidence that you aren’t taking your case seriously, and they may end it.

FAQs

Q: What Happens if Your Chapter 13 Case Gets Dismissed?

A: If your Chapter 13 bankruptcy case gets dismissed, you will lose the protection granted by the bankruptcy court, and creditors will now be allowed to resume their collection efforts. Your debts will remain, and you will be responsible for paying them outside of your bankruptcy plan. It will also negatively affect your credit score. You may want to contact a bankruptcy lawyer to find out if your plan is in danger of being dismissed.

Q: Can a Dismissed Chapter 13 Plan be Reinstated in Tennessee?

A: It may be possible for a dismissed Chapter 13 plan to be reinstated in Tennessee. To get your plan reinstated, you will first have to file a Motion to Reinstate. In your motion, you will have to explain the exact reason why your case was dismissed in the first place. Remember that the court is under no obligation to grant you a second chance. If you have fixed the initial problem, they may be more inclined to help you.

Q: How Soon Can I Refile Chapter 13 After Dismissal?

A: If your case was not dismissed with prejudice, you can refile for Chapter 13 bankruptcy immediately after your dismissal. If your case was dismissed with prejudice, there is generally a waiting period of 180 days. This usually happens if your case was dismissed due to fraud, bad faith, or after repeated failure to obey court orders.

Q: Can You Negotiate with Creditors After Chapter 13 Dismissal?

A: You can negotiate with creditors following a Chapter 13 dismissal. If your bankruptcy case has been dismissed, the creditors are allowed to resume their efforts to collect your debts. If you want to, you can be proactive and reach out to them first to negotiate a new payment arrangement.

Tennessee Bankruptcy Lawyer

If your bankruptcy case is dismissed, you may want to consider refiling immediately to regain the protections granted by the bankruptcy court. Otherwise, the creditors may start coming after you again for repayment.

The legal team at Kerney Law Firm understands the kind of legal help you’ll need to reinstate a bankruptcy plan. Contact us to speak to a member of our team about your case.