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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?
You can appeal to consider the missed payments but I think you will have to get back with the payments.
Posted on: 23rd Jul, 2007 10:20 pm
Hi Tara,

Welcome to forums.

If your chapter 13 has been dismissed, you need to request the court so that they reinstate your plan. The court and the trustee will allow for the reinstatement only if you are willing to cover up all the missed payments. Also, you need to ask for the reinstatement only few months after the case has been dismissed.

Thanks
Posted on: 24th Jul, 2007 03:58 am
Hello I filed chap13 in oct, I have fallen behind on my mort I did call my lawyer and asked what I can do and was told to work it out with the mort co and that I have 8 mos to live in the house. and the mort co is unwilling to work out any thing
Posted on: 24th Jul, 2008 04:06 pm
Hi Marla.

Welcome to the forum.

I can understand your situation. But you can just request to the mortgage company to work out any repayment plan. Try again and again as the need is yours. But in spite of repetitive request for the work out plans if they cannot help you out then you should try to sell the property and pay off the lender. At least that will not affect your credit report as much as foreclosure. BTW was it a non-recourse loan?

Best of luck,
Larry
Posted on: 25th Jul, 2008 05:28 am
my chpt. 13 bankruptcy was dismissed. I have my payment automatically withdrawn from my paycheck each payday and apparently in 4/08 my payment was going to increase. I did not know that this was going to happen so my payments stayed what they were before. I never received a letter stating a dismissal was pending but my attorney did and nothing was done. I have been paying into my divorce for 3 yrs and had 2 more to go. I tried to explain to the trustee a mistake has been made but she told me to file again. will my bankruptcy still be subject to the old law it was originally filed under or the new law passed recently. Do I have any other options....PLEASE HELP ME WITH SOME ANSWERS...
Posted on: 31st Jul, 2008 10:37 am
Hi mwalker.

Welcome to the forum.

You can file bankruptcy chapter13 again. BTW how much do you owe? Is it a huge amount? You should better pay it off ASAP. BTW payday loan is not a good option and it is better to avoid payday loans.

Best of luck,
Larry
Posted on: 01st Aug, 2008 03:47 am
Hi Mwalker,

I think Chapter 13 will be filed after the new bankruptcy law. But are you sure the trustee said you can file it again? because some states do restrict it and you just re-file within the next 7-10 years. But yes, there are states also, where you can file Chapter 13 again after dismissal. So, let me know the name of your state so that I'll be able to tell if you can re-file.

Hope this helps...

May god bless you.

Samantha
Posted on: 01st Aug, 2008 06:30 am
I filed chapter 13 twice within one year because my case was dismissed due a missing document and refiled and stated got in all the documents and then got laid off and now I am working again. It's a year from the first filing, can I file to get back on track.

Thank you
Posted on: 11th Oct, 2008 12:53 am
Hi anna!

As you have filed Chapter 13, you are reorganizing your debts. This will bring a positive effect in your credit. You can keep on paying the debts for having a positive affect on your credit. It will not be dismissed. If it is dismissed it will have a bad effect on your credit.

Thanks,

Jerry
Posted on: 13th Oct, 2008 04:22 am
My case was dismissed for non payment. I paid on time for 3 years but because of being laid off I was not able to pay anything. Do I have any options from here. Thank you
Posted on: 24th Oct, 2008 06:16 am
hi guest!

welcome back to the forums!

once you have declared the chapter 13 bankruptcy, i don't think you will be able to revoke it. i hope you are paying according to the new plan given by the lender to you? this will help you to rebuild your credit and you can apply for a fha loan after 1 year of the discharge of the bankruptcy but for conventional loans you will have to wait for 2 years.

thanks,

jerry
Posted on: 25th Oct, 2008 02:15 am
my chapter 13 is pending a dismissal because mortgage payment went up and is not feasible anymore . what can i do or do i have to look at a foreclosure
Posted on: 25th Oct, 2008 11:34 am
Hi hanky!

You will first have to speak with the lender and check if he can offer you a solution or if he can offer you some other plan. I don't think the lenders will agree to this. Yes, there are chances that your property can go into foreclosure.

Thanks.
Posted on: 27th Oct, 2008 01:49 am
MY Bankrupcy was dismissed can I reaplied
Posted on: 08th Nov, 2008 08:25 pm
Hi enrique negron,

You can refile if your bankruptcy case has been discharged by the court. If your chapter 13 bankruptcy was dismissed, then you can file as soon as your bankruptcy is dismissed but can only file chapter 7 every 7 years.

Thanks,

Jerry
Posted on: 10th Nov, 2008 01:23 am
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