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?
Well, after contacting 15 attorneys I have decided we should just dismiss the bankruptcy and try to work directly with our mortgage company to get a loan modification. Several attorneys were honest in stating that nobody wants to take my case because they will not get their monies worth.Could you give me info. on dismissing a BK with no attorney to represent me and how long that process is?
Hi Guest!
Welcome to forums!
Your bankruptcy filing can get dismissed, if you do not follow the rules and regulations. You can even contact your bankruptcy trustee and check out if he can help you in this matter.
Sussane
Welcome to forums!
Your bankruptcy filing can get dismissed, if you do not follow the rules and regulations. You can even contact your bankruptcy trustee and check out if he can help you in this matter.
Sussane
I filied ch 13 bankruptcy and it was dismissed due to me not making the payments. However, I sold my house during the time of bankruptcy. They took most of the profit. Should I get the profit back beings it was dismissed.
Hi Guest!
Welcome to forums!
The amount of profit that you received was used to pay off your creditors. In such a situation, though your bankruptcy filing was dismissed, you may not be able to get back the money.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
The amount of profit that you received was used to pay off your creditors. In such a situation, though your bankruptcy filing was dismissed, you may not be able to get back the money.
Feel free to ask if you've further queries.
Sussane
Thank you Sussane. The profit they recieved (Almost $25,000) would of paid off all my creditors. However, they are still contacting me. Who should I contact about this?
Hi Guest,
You should have a word with your bankruptcy attorney and take his opinion in this matter. Though your bankruptcy is dismissed now, he will be able to guide you as to what steps you need to take in order to stop the creditors from contacting you. You should note that if your creditors haven't received their payments in full, then they can contact you for the payments.
You should have a word with your bankruptcy attorney and take his opinion in this matter. Though your bankruptcy is dismissed now, he will be able to guide you as to what steps you need to take in order to stop the creditors from contacting you. You should note that if your creditors haven't received their payments in full, then they can contact you for the payments.
how long can you run your company after being coverted into a 7.
Hi rand!
Welcome to forums!
Your bankruptcy attorney is the best person to guide you in this matter.
Sussane
Welcome to forums!
Your bankruptcy attorney is the best person to guide you in this matter.
Sussane
How do I find out what has been discharged and if payments to creditors are up to date?
Hi guest!
Welcome to forums!
Your bankruptcy attorney will be the best person to help you in this matter. You should contact him and he will let you know what has been discharged.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
Your bankruptcy attorney will be the best person to help you in this matter. You should contact him and he will let you know what has been discharged.
Feel free to ask if you've further queries.
Sussane
I filed a new ch 13 and requested an extention of the automatic stay. The motion was denied without prejudice due to incomplete fomat. what is the procedure to get the stay reinsated?
hi ar,
you will have to contact a bankruptcy attorney and take his help in re-filing your chapter 13 bankruptcy.
thanks
you will have to contact a bankruptcy attorney and take his help in re-filing your chapter 13 bankruptcy.
thanks
my husband and i filled bankruptcy together what happens if one of us happens to die do the living spouse still have to pay it
Welcome kiyah,
If the bankruptcy filing gets discharged, then the other spouse won't have to pay anything as both the spouses had filed bankruptcy jointly.
If the bankruptcy filing gets discharged, then the other spouse won't have to pay anything as both the spouses had filed bankruptcy jointly.
What happens if your house was in forclousure and was stopped by Bankrupty. My payment was 1600.00 per month, leaving me with a negative balance of 498.00 and buying no food.