Did You Ever File Chapter 13 Bankruptcy? Not Really?! (A Short Story About Dabblers and Debtors)

     This is one of the first things I always ask new callers.  I need to know if I am dealing with a potential repeat Chapter 13 filing and the whole can of worms that opens up (with unhappy trustees and judges, with restrictions on the automatic stay, etc).  What never ceases to amaze me is the answer I get.  Maybe.  Not really.  I don’t know.  I think so.  I did but then I didn’t.  WHAT?!!! HOW CAN YOU NOT KNOW IF YOU EVER FILED BANKRUPTCY? THAT IS MAJOR.  This isn’t like someone casually asking what you ate for lunch yesterday.  Or where you left your car keys or glasses.  Things you might forget.  This is like being pregnant.  Either you are or you aren’t.  There is no such thing as being a little bit bankrupt.

     The fault lies with the dabblers, more often than with the debtors.  That’s what experienced bankruptcy attorneys call the other attorneys who dabble in the bankruptcy court.  They know just enough to be dangerous.  Some clients come in and tell me that their former attorney openly admitted that he didn’t know how to do bankruptcy work.  But he did it anyway!  A walking malpractice suit.  Usually leaves the client in a lurch.  With missing or incomplete schedules.  No plan.  Missed court dates.  And ultimately dismissal of the case or termination of the stay.  Which leads the debtor client right back to where he or she started.  Without stay protection. 

     Some callers mistakenly think their bankruptcy filing didn’t really count because their lawyer filed some papers for them but they didn’t do anything else.  They call my office and ask me if I can file Chapter 13 for them.  I call these Chapter 26’s (2 x 13) or even Chapter 39’s (there are no such chapters).   These callers are shocked when I tell them that they really did file a bankruptcy case, even if it went nowhere (something I can usually confirm with a quick docket check on PACER).

     Beware the dabblers!