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Getting a Refund After Dismissal As you make payments under your repayment plan, the money goes to your bankruptcy trustee, who then distributes it to your creditors. If your case is dismissed, you are entitled to a refund of any money that is still in the trustee's possession.
A trustee may not have any right to new income you earned after you file. There are only a few exceptions, including if it is income you were entitled to when you filed making it a part of the estate or if it is income generated from the estate's equipment or other assets.
The Trustee's Report of No Distribution, or NDR, lets the court and all interested parties know that no money will be paid to creditors. If a NDR is filed, the court will close the bankruptcy case shortly after the discharge has been entered.
Whether the trustee can take money you receive after filing your case depends on whether you were entitled to the money at the time your case was filed and how it was listed on your forms, if at all.
If you're unable to pay your filing fees, the court will usually try to work with you. For Chapter 13 bankruptcy, you may be able to roll your court fees into your repayment plan, paying the court in monthly installments.
Your credit score will lower dramatically due to Chapter 13 being on your credit report. It will be removed after seven years. Credit scores tend to drop between 150 to 200 points after filing for bankruptcy. The average score is around 579.
This chapter of the Bankruptcy Code provides for adjustment of debts of an individual with regular income. Chapter 13 allows a debtor to keep property and pay debts over time, usually three to five years.