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Bankruptcy dismissal-What to do after dismissed bankruptcy

Author: Jessica Bennet
Community Mentor
Ask Jessica
Posted on: 24th Dec, 2005 10:30am
If you are facing difficulty to make payments on your debts and want to get rid of them, you can file bankruptcy (BK) to have them discharged. However, in certain situations, your BK case can be dismissed even before your debts are discharged. Bankruptcy dismissal refers to the pre-mature closure of your case prior to getting a discharge. Read through the sections below to find out the reasons behind dismissal and what options you have after the dismissal.

When can BK be dismissed?



  • Chapter 7 can be dismissed under the following circumstances.


    Voluntary dismissal: If you do not intend to go ahead with your BK case, you can request the court to have it dismissed. The judge will dismiss your case, as long as he thinks it does not affect your creditor's ability to collect the debt from you.


    Inability to follow rules: If you fail to follow the BK rules, your case can be dismissed for the following reasons:
    1. You do not pay the fees and costs associated with BK.
    2. You cause unnecessary delay in your case.
    3. You do not file necessary paperwork and fail to provide the court with required information.

    Abuse of Chapter 7: If you abuse the Federal laws regarding chapter 7, it can result in a dismissed bankruptcy under the following circumstances:
    1. You filed your case in bad faith
    2. You have filed Chapter 7 even though you can pay off most of your debts through Chapter 13.
    3. You live a luxurious life even after filing BK.

  • Your Chapter 13 case can be dismissed under the following situations.
    1. You do not file a repayment plan within time.
    2. You fail to make timely payments.
    3. Your repayment plan is not confirmed or your request for additional time to file another plan is denied.

What happens after a bankruptcy dismissal?


Once you file BK, the automatic stay comes into effect. This stops your creditors from taking any action against you, like a foreclosure, garnishment, lawsuit, etc. After the case is dismissed, the automatic stay is revoked and your creditors are free to come after you for the outstanding debts.

Do you have any option after the dismissal?


You always have the option of re-filing bankruptcy after dismissal. However, if you re-file within 1 year of the previous dismissal, the automatic stay will be effective only for a period of 30 days. You will have to file a motion to extend the stay immediately after re-filing your case. The BK judge will assess your situation and will either accept or deny your request for the extension.

However, you cannot re-file your case after dismissal, if your previous Chapter 7 or Chapter 13 case was dismissed within the last 180 days for the following reasons:
  1. You had your previous bankruptcy dismissed after a creditor sought relief from automatic stay.
  2. You did not obey court order.
  3. Your previous filing was considered fraudulent.

How does a dismissal affect your credit?


A dismissal affects your credit in a negative way. It shows up on your credit report for 7-10 years, though its adverse impact diminishes with time.
Posted on: 24th Dec, 2005 10:30 am
I filed a BK which was dismissed. Any options left now?
Hi,

It happens sometimes even if you are having valid reasons. Don't lose heart if you find your BK dismissed. There are some options you can follow -

  • You can appeal to the court to recall your case which will be accepted if you make up all the missed payments and the appeal is made within a few months after the case was dismissed.
  • If you qualify for a chapter 13 then you can file the Chapter 13 again even if your previous case is just dismissed.
  • You can file a chapter 7 again after the dismissal

If the reason for chapter 13 or chapter 7 dismissal is your willful failure to obey court orders or at your request for dismissal, then you can re-file the case after 180 days of the dismissal.

Just look for the options that may fit in suitable for you. I hope this Christmas will bring happiness and success to you. Wish you Merry Christmas.:)

God bless you.

For MortgageFit,
Samantha
Posted on: 24th Dec, 2005 10:55 am
Chapter 13 can be filed as soon as your case gets dismissed, but if it is chapter you may have to wait 7 years.

thanks
Posted on: 24th Dec, 2005 11:05 am
Hi,

Normally you can re-file immediately after your bankruptcy dismissal. The problem comes when the court bars from re-filing.

As mentioned by Samantha, sometimes the court feels that the debtor acted in bad faith and in that case you need to wait for sometime before you can file it again.

Merry Christmas to all of you.

Regards,
Blue
Posted on: 24th Dec, 2005 11:16 am
What does it indicate if my bankruptcy was dismissed?
Posted on: 24th Dec, 2005 11:35 am
Hi Remo,

The automatic stay ends with the dismissal and the creditors are allowed to collect debts unless a discharge is entered before the dismissal and is not cancelled. Unless you make an appeal to reconsider the order within ten days, the Clerk will close the case.

Regards,
Blue
Posted on: 24th Dec, 2005 11:48 am
Thanks for the replies. I shall look for the possible option to re-file my case soon.

Merry Christmas to all of you.
Posted on: 24th Dec, 2005 12:23 pm
Is there any specific reason behind bk case dismissed?
Posted on: 24th Dec, 2005 12:43 pm
Hi Remo,

While filing a BK you have to fill up certain information related to your financial affairs and have to sign it stating all the information provided as true.

Now if it is found that you have intentionally tried to hide some facts then your case may be considered as a fraud one and can be dismissed.

Your case may get dismissed if you try to conceal some of your property by some means or you are found hiding your property or your money from your spouse at the time of divorce.

If you are found to take debts to have luxury items or lying about your income or debts or credit application, then you case may be dismissed by the court.

God bless you.

Thanks,
Samantha
Posted on: 24th Dec, 2005 12:56 pm
my chapter 13 was dismissed. we were behind from a clerical error by the court...they were overcharging us for the first year..which was only caught after we had a hearing on why we were behind the first time...now i have been out of work for 2 months for medical reasons..and am behind again..the case is under motion for dismissal...what are my chapter 13 dismissal options?
Posted on: 04th Feb, 2006 02:19 pm
Hi Jimmy,

Welcome to MortgageFit Forums.

I am sorry to know about your problem and wish early recovery from the troubles.

You can file chapter 13 again after it is dismissed. Consult an attorney whether you can make an appeal to the court.

Your case may considered as there were some mistakes by the court itself.

God bless you.

For MortgageFit,
Samantha
Posted on: 04th Feb, 2006 02:41 pm
my case was dismissed today because my lawyer did not complete the plan ontime . What happens when bankruptcy is dismissed? I have made all payments ontime what do i do
Posted on: 23rd Jun, 2006 06:42 pm
Hi Gator,

Welcome to MortgageFit Forums.

I can understand your position and mental condition at present. It's really unfortunate if you are facing trouble for which you are not guilty. I shall advise you to consult a reputed attorney and see if something can be done.

You can re-file a case even when you are dismissed. In case of chapter 13 you may re-file immediately. A good attorney can guide you well in this matter.

I wish you come out of this trouble soon.

God bless you.

For MortgageFit,
Samantha
Posted on: 23rd Jun, 2006 07:13 pm
Can dismissed bankruptcy chapter 13 remain on my credit report? and when the case gets dismissed will I be able to get refund of the filing fee?
Posted on: 12th Apr, 2007 05:57 pm
Gifford, even if your chapter 13 case gets dismissed, it will remain on your report for 10 years from the date the case was filed. And the other thing is that as per statutes you cannot get refund of the filing fees even if the case is dismissed.

Romberg
Posted on: 12th Apr, 2007 06:04 pm
My chapter 13 is being dismissed because I missed two payments. I missed the two payments because my mortgage went up. Can I appeal this or pay the back payments to make it whole?
Posted on: 23rd Jul, 2007 06:13 am
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