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?
my payments keep going up, i feel like i am being forced out or maybe even railroaded
thank u i have tried your talking to all parties involved with no sucess
Hi, I filed for a BK two years ago and all was going smoothly until just recently when I got a call from a Collector. I told them it was all included in the BK and they told me it was dismissed. I freaked out, still am, I have my lawyer working on it. Turns out she turned in ALL paperwork they were asking for and has proof of the court receiving my credit counseling certificates but for some reason the court is saying they were not submitted when they were. My lawyer tells me it was a clerical error and am really hoping they see the mistake and can reinstate my BK because I still can't pay my debt unfortunately. I've fallen into some really hard times lately. :( Please let me know if this does happen and will it be an easy fix. Thank you your help is greatly appreciated. :)
Welcome anonymous,
If the clerical error is recognized and if your bankruptcy is recognized by the court then you will be easily able to sort out the matter. In that case, you won't have to pay off your creditor. But if your bankruptcy is dismissed, then the creditor will be able to come after you for the debts.
If the clerical error is recognized and if your bankruptcy is recognized by the court then you will be easily able to sort out the matter. In that case, you won't have to pay off your creditor. But if your bankruptcy is dismissed, then the creditor will be able to come after you for the debts.
if the automatic stay was granted by a superior court judge after filing bankruptcy and a bankruptcy was dismissed for not having all documents filed in time but did file for motion to extend for more time and the bankruptcy judge denied motion dismissing bankruptcy but gave order could refile again when prepared will automatic stay remain since the bankruptcy judge was not the judge who ordered stay is it still automatically lifted..superior court judge ordered 120 day stay with court date for review in april..[/i]
I feel that my trustee has given me incorrect information, one time they tell me to claim something, the next time they tell me not to. (someone paid some bills for me during my bankruptcy). can i request a new trustee and start over becuase i do not feel that my paperwork has been correct?
Hi Guest!
Welcome to forums!
You can request the court to provide you with a new trustee but it will be the court's discretion whether or not you will get a new trustee. You can even have a word with your bankruptcy attorney in this matter.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
You can request the court to provide you with a new trustee but it will be the court's discretion whether or not you will get a new trustee. You can even have a word with your bankruptcy attorney in this matter.
Feel free to ask if you've further queries.
Sussane
what if i am in a 13 and get a lump sum from ssdi and i spend it without the trustees permission. i have been in 13 for 15 months and surrender my home can they kick me out of bankruptcy...what happens to what is left still owed to my creditors and the house
i live in rochester ny
i live in rochester ny
Welcome georgine,
You shouldn't have spent the lump-sum money that you received from SSDI. You should have given the money to the trustee who could have used it to pay off your creditors. Nevertheless, you should immediately inform the bankruptcy attorney and trustee about the same and check out if you can stop your bankruptcy dismissal.
You shouldn't have spent the lump-sum money that you received from SSDI. You should have given the money to the trustee who could have used it to pay off your creditors. Nevertheless, you should immediately inform the bankruptcy attorney and trustee about the same and check out if you can stop your bankruptcy dismissal.
Whatdoes to the extent your oblication has been discharged, dismissed, or is subject to an automatic stay of bankruptcy under title 11 of the United States code mean
Hi Guest!
Welcome to forums!
If the bankruptcy filing has been dismissed, then your creditors will be able to come after you for the debts and you will be personally liable for the debt payments. If the bankruptcy filing has been discharged, then you won't be personally liable for the debts as the trustee may have sold off your assets to pay off your debts. If a particular lender/creditor receives an automatic stay, then he/she may come after you for the debts though your other debts are discharged in your bankruptcy filing.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
If the bankruptcy filing has been dismissed, then your creditors will be able to come after you for the debts and you will be personally liable for the debt payments. If the bankruptcy filing has been discharged, then you won't be personally liable for the debts as the trustee may have sold off your assets to pay off your debts. If a particular lender/creditor receives an automatic stay, then he/she may come after you for the debts though your other debts are discharged in your bankruptcy filing.
Feel free to ask if you've further queries.
Sussane
How long do I have to wait to file bankruptcy if my chapter 13 was dismissed for adverse reasons?
Hi Jody!
Welcome to forums!
The time you need to wait for filing Chapter 13 again may depend upon the reasons as to why your bankruptcy filing was dismissed. If your bankruptcy was dismissed due to late payments, then your bankruptcy attorney can refile it immediately.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
The time you need to wait for filing Chapter 13 again may depend upon the reasons as to why your bankruptcy filing was dismissed. If your bankruptcy was dismissed due to late payments, then your bankruptcy attorney can refile it immediately.
Feel free to ask if you've further queries.
Sussane
what does it mean when case status change to about to close? making all payments on time and still have 4 months left.
can one of my credit card creditor refuse to accept the dismissal and make me bad back the balance on the credit card