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 bankruptcy be dismissed?
- What happens after a bankruptcy dismissal?
- Do you have any option after the dismissal?
- How does a dismissal affect your credit?
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:
- You do not pay the fees and costs associated with BK.
- You cause unnecessary delay in your case.
- 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:
- You filed your case in bad faith
- You have filed Chapter 7 even though you can pay off most of your debts through Chapter 13.
- You live a luxurious life even after filing BK.
- Your Chapter 13 case can be dismissed under the following situations.
- You do not file a repayment plan within time.
- You fail to make timely payments.
- 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:
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:
- You had your previous bankruptcy dismissed after a creditor sought relief from automatic stay.
- You did not obey court order.
- 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.
I filed a BK which was dismissed. Any options left now?
Your query has been replied to in the given page:
http://www.mortgagefit.com/credit/bankruptcy-dismissal.html#159923
Take a look at it. Hope it helps it.
http://www.mortgagefit.com/credit/bankruptcy-dismissal.html#159923
Take a look at it. Hope it helps it.
IF I HAVE FILED BANKRUPTCY IN 2004 WAS DISCHARGED. HAD GOTTEN A GOOD JOB HAD 2 CARS AND CREDIT CARDS AND PAID MY BILLS ON TIME, THEN MY HUSBAND LOST JOB AND I LOST MY JOB . CAN'T FIND A JOB . I DO NOT HAVE MONEY TO PAY ITS MAKING ME VERY SICK. DON'T KNOW WHAT TO DO
Hi angela,
You can contact your credit card company and inform them about your hardship. They may provide you with assistance. They can suspend your payments for the time being or may give you an affordable payment plan to pay them off. However, as you've lost your job, it would be difficult for you to get a payment plan from your creditor.
Take care.
You can contact your credit card company and inform them about your hardship. They may provide you with assistance. They can suspend your payments for the time being or may give you an affordable payment plan to pay them off. However, as you've lost your job, it would be difficult for you to get a payment plan from your creditor.
Take care.
Hi,
We were forced into chapter 13 bankruptcy because our attorney failed to do an offer and compromise with the IRS in a timely manner. We kept up with all the payments to the court for a year. We never had a confirmation hearing.
Due to wage cuts, we couldn't make our mortgage payments and bankruptcy payments, so we just made the bankruptcy payments.
My question is, could we have amended the plan, since it was not confirmed, instead of getting a dismissal? This is in Nevada.
We were forced into chapter 13 bankruptcy because our attorney failed to do an offer and compromise with the IRS in a timely manner. We kept up with all the payments to the court for a year. We never had a confirmation hearing.
Due to wage cuts, we couldn't make our mortgage payments and bankruptcy payments, so we just made the bankruptcy payments.
My question is, could we have amended the plan, since it was not confirmed, instead of getting a dismissal? This is in Nevada.
Hi Lyn,
Was your mortgage included in your bankruptcy filing? If not, then non-payment of the dues will not affect you or dismiss your bankruptcy. However, if you constantly default in your mortgage dues, then the lender will foreclose the property. You can amend your bankruptcy filing and include your mortgage into it. As per Chapter 13, you'll get a payment plan to pay off the loan.
Thanks
Was your mortgage included in your bankruptcy filing? If not, then non-payment of the dues will not affect you or dismiss your bankruptcy. However, if you constantly default in your mortgage dues, then the lender will foreclose the property. You can amend your bankruptcy filing and include your mortgage into it. As per Chapter 13, you'll get a payment plan to pay off the loan.
Thanks
will creditors work monthly payment plan after dismissed chapter 13
I had to file a chapter 7 bk in September 2002 and I'm now facing it again I thought the laws said you could file again after 7 years now I'm being told it's 8 years what do I do as I have already filed the chapter 7 and my creditors meeting is at the end of June.
Hi!
Welcome to forums!
To Curios,
After your Chapter 13 plan is dismissed, it would be the discretion of the creditors whether or not they would let you pay as per the monthly payment plan. In most cases, the lender will not allow it.
To Cheri,
As far as I know, you will be able to file Chapter 7 after 8 years of your previous filing. I would suggest you to have a word with your bankruptcy attorney and the trustee in this matter.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
To Curios,
After your Chapter 13 plan is dismissed, it would be the discretion of the creditors whether or not they would let you pay as per the monthly payment plan. In most cases, the lender will not allow it.
To Cheri,
As far as I know, you will be able to file Chapter 7 after 8 years of your previous filing. I would suggest you to have a word with your bankruptcy attorney and the trustee in this matter.
Feel free to ask if you've further queries.
Sussane
my 13 has been dismissed. i lost my job, and the payments became impossible to make. All that is left owing on my 13 is ongoing mortgage which is up-to-date and property taxes. what options do i have. my lawyer sucks for giving information. thank you in advance
Hi lori!
Welcome to forums!
You may contact the court and try to reinstate your case. There are chances that the court and the trustee will allow reinstatement of the bankruptcy filing only if you make up all of the payments that you've missed. Another option would be to get in touch with your bankruptcy attorney and try to re-file it.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
You may contact the court and try to reinstate your case. There are chances that the court and the trustee will allow reinstatement of the bankruptcy filing only if you make up all of the payments that you've missed. Another option would be to get in touch with your bankruptcy attorney and try to re-file it.
Feel free to ask if you've further queries.
Sussane
hi
my chapter 7 bankruptcy forms have been already filled but i wonder if i can dismiss the case because we trusted in an agency who promised legal aid but the only think they did was to fill out the forms that by the way were not fill out correctly but even like that they told us to continue to file the forms and we trusted them, we payed a total of $1200.00 to that agency .now we don't have a lawyer to help us with the case, should we continued ourselves without the help of a lawyer? or we just not continued with the case and try to star over again after the court dismiss the case? can the case be dismiss automatically if we do not continued with the case or we have to cancel it .
we really need some good advice, we haven't found any lawyer who specialized in chapter7
thanks
chris
my chapter 7 bankruptcy forms have been already filled but i wonder if i can dismiss the case because we trusted in an agency who promised legal aid but the only think they did was to fill out the forms that by the way were not fill out correctly but even like that they told us to continue to file the forms and we trusted them, we payed a total of $1200.00 to that agency .now we don't have a lawyer to help us with the case, should we continued ourselves without the help of a lawyer? or we just not continued with the case and try to star over again after the court dismiss the case? can the case be dismiss automatically if we do not continued with the case or we have to cancel it .
we really need some good advice, we haven't found any lawyer who specialized in chapter7
thanks
chris
Welcome guy,
In my opinion, it will be better to get the case dismissed as the forms were not filled out correctly. Once your case is dismissed, you can contact an experienced bankruptcy attorney and discuss your case and then re-file it. If you do not provide the court with correct documents or if you are not present at the 341 meeting, then the court will automatically dismiss your bankruptcy filing.
In my opinion, it will be better to get the case dismissed as the forms were not filled out correctly. Once your case is dismissed, you can contact an experienced bankruptcy attorney and discuss your case and then re-file it. If you do not provide the court with correct documents or if you are not present at the 341 meeting, then the court will automatically dismiss your bankruptcy filing.
thanks for your advice Adonis. I really Appreciated
Our chpt 13 case was dismissed recently. I contacted my lawyer and he told me that I could refile, but I would have to pay him 750.00 cash to refile. Tje last time his fees were put in the case. What should I do. I dont have the money right now. Can I get a whole new lawyer and refile and put his fees in the case or what????
Hi twinsnchase,
You can get a new bankruptcy lawyer for yourself in order to re-file your bankruptcy case. However, you'll have to pay the required fees to the new lawyer as well. You may contact your friends or relatives who may help you with the required money in order to re-file your bankruptcy case.
Take care.
You can get a new bankruptcy lawyer for yourself in order to re-file your bankruptcy case. However, you'll have to pay the required fees to the new lawyer as well. You may contact your friends or relatives who may help you with the required money in order to re-file your bankruptcy case.
Take care.