What next?: Note in Ch13 Bankruptcy and now a Motion to Dismiss

[Paul Murch]

My IRA owns a note in second position on a house where the borrower is currently in a Ch13 payment plan. I have started receiving payments and will for the final 12 months of the plan. Last month, the trustee filed to dismiss the case due to the borrower failing to provide their tax return as required. If the case is in fact dismissed in a couple weeks, what is my next step? Contact borrower immediately to discuss a work-out option? - During the bankruptcy, The note was determined to be unsecured because the house was so far underwater when bankruptcy was filed. Now there is equity. How would I handle the payments that have been made so far with respect to the outstanding principal/interest? Is the note automatically considered to be secured again if the case is dismissed? Thanks.