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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?
When my chapter 13 is dismissed due to missed payments how long do I have to move out of the house? I don't want to save the house--I just want to walk away from it.
Posted on: 10th Dec, 2008 07:56 pm
Hi Remo,

Have you been contacted by your creditors and lenders after the dismissal? Most probably, the lender would like to pursue a foreclosure because your dismissal will make him think that you may not be able to repay your debts. So, chances are that the lender won't allow you to follow an alterrnative repayment plan or a loan modification.

There's no specific time period as to how long you can occupy the property. However, if the lender declared a foreclosure and you don't get a loan workout option, then you can occupy the property for a period of 105-120 days. At the end of this period, the lender would sell off the property at a public auction.

Take care
Posted on: 11th Dec, 2008 02:00 am
Our chapeter , we had it dismiss, because of our ARM adjustment. In feb 2007, we filed a chapter 13 and our payments was $1400.00 a month then in June our payment increase to $1650.00 due to the adjustable mortgae and then we got a letter fron the mortgage, our mortgage will adjust again and it would be $1840.00. so we filled for a dismissal, in October 2007 and was discharge in October 2007. My question is, my wife name was on the mortgage and my name was not. Did I need to file bankruptcy also. I am trying to get a mortgage in my name and having problems with Bankruptcy dismissal. Can you help to find somebody who help me get a mortgage. we tryig to get a loan modification from the mortgage company now.
Thank for your help.
Nate
Posted on: 26th Jan, 2009 09:11 am
Hi Nate,

As your name was not on the mortgage, I don't think you needed to file the bankruptcy. Your wife alone should have filed the bankruptcy if she had difficulty in paying the debts.

As the bankruptcy is still showing in your credit report, it will be difficult for you to get a mortgage. You have mentioned that your bankruptcy was dismissed. In that case, you may speak to the credit bureaus and try to negotiate with them if they could remove the bankruptcy from your credit report.

Thanks.
Posted on: 27th Jan, 2009 01:46 am
My chapter 13 was dismissed however I filed an appeal and the judge vacated the dismissal but the mortgage company says that they sold my home after the appeal. Can they do that?
Posted on: 02nd Feb, 2009 06:58 pm
Hi Angel,

If the court has passed a judgment to vacate the dismissal, then I don't think the mortgage company can sell off your property. It will be better if you can consult your bankruptcy attorney regarding this.
Posted on: 13th Feb, 2009 10:26 pm
can I refile a ch 7 bankruptcy if my case was previously dismissed because I didnt go to hearing?
Posted on: 17th Feb, 2009 06:32 pm
Hi monica,

As far as I know, you will have to wait for 6 months to 1 year in order to refile chapter 7. But I would suggest you to consult your bankruptcy attorney. He is the best person to help you in this regard.
Posted on: 17th Feb, 2009 11:41 pm
We are in our second round of bankruptcy due to our first dismissal. We had to pay all fees up front totaling 3274.00 because its our second time. We haven't gone to our meeting of creditors yet and now we are considering backing out of the whole bankruptcy. Can we get back any of the lawyer's fee excluding? thanks
Posted on: 08th Mar, 2009 09:47 pm
hi sdiana,

i don't think you will get back the the money if you back out from filing bankruptcy at this stage.
Posted on: 09th Mar, 2009 10:24 pm
if i get dismissed from a ch 7 how long before i can refile in the state of wisconsin. if i refile will i e assigned a new case number or will it reopen my old case number
thanks
Posted on: 11th Mar, 2009 10:35 am
Hi mikey!

Welcome to forums!

As your bankruptcy was dismissed, you can refile Chapter 7 after 6 months. However, you can file Chapter 13 immediately. As far as I know, you will get a new case number for filing again.

Sussane
Posted on: 11th Mar, 2009 10:25 pm
my chapter 13 has been dismissed for about a 2 years now I think and it is too much for me. Is it possible to do another chapter 13 or would it be best to do a chapter 7 or 11?
Posted on: 19th Mar, 2009 12:40 pm
Hi vlynn,

In case of dismissal, chapter 13 can be filed after 6 months. As 2 years have passed since your chapter 13 was dismissed, you can definitely file it again. As far as Chapter 7 is concerned, you will have to qualify the Means test first.
Posted on: 20th Mar, 2009 12:13 am
was sick and could not make plan payment or mortgage payment. the trustee made a motion to dismiss bankruptcy. i m behind 3 months on each. im so nervous . idont want to be homeless.
Posted on: 07th Apr, 2009 09:50 pm
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