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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?
Hi ann,

As you did not make the payments, the trustee can file a motion to dismiss your bankruptcy. If your bankruptcy is dismissed, your creditors will have the right to sue you for the debts. I would suggest you to contact your bankruptcy attorney and discuss your options with him. If your bankruptcy is dismissed, then you need to contact your lenders and check out if they can give you any other option.

Thanks
Posted on: 08th Apr, 2009 09:51 pm
I filed chap 13 in '07. Plan included a 3 unit bldg, 3 credit cards, HomeDepot acct and my car. Last yr, I walked away from the bldg, pd off credit cards & Home Depot. Car is stil on. BK dismissed because I was paying $900 per month. Atty told me he would dismiss BK because car pymt was only $400 p/m. Now tells me Wells Fargo will repo the car. What should I do now???
Posted on: 09th Apr, 2009 12:12 pm
Hi Linda,

As your bankruptcy was dismissed by the court, your lender will be able to repo the car. You'll have to either pay off the car loan in full or you can negotiate with the lender to get an alternative plan to pay off the car loan.
Posted on: 09th Apr, 2009 09:10 pm
Was dismised last yea, only like about 4 payments but was unable to make them at that time. Can I file again
Posted on: 14th Apr, 2009 09:33 pm
Hi DAVIS,

As far as I know, you'll be able to file bankruptcy again. You can consult a bankruptcy attorney and take his opinion in this regard.

Thanks
Posted on: 15th Apr, 2009 08:45 pm
My chapter 11 was dismissed with the court even though I had filed a voluntary dismasal myself. i was advised to do this so I could refile as Chapter 13 instead. But that I could only refile if my Voluntary dismissal was approved. Is there any appeal process?? Should I just go ahead and reile as 13? I'm the sole proprietor of a business and stand to lose it if I can't refile.
Posted on: 30th Apr, 2009 04:22 pm
You could have applied to convert your Chapter 11 bankruptcy to Chapter 13. That would have been a better option. As far as I know, you cannot immediately refile Chapter 13. Contact your bankruptcy attorney. He'll be the best person to help you.
Posted on: 01st May, 2009 12:19 am
I have been in bankruptucy for a year in janruary the way it was payed my sister moved in with me I am disabled and live on s.s. 1391.00 a month my sisteris moving out I cant pay is there anything I can do so I dont lose my home
Posted on: 06th May, 2009 04:25 pm
hi glenda,

if you cannot pay off the mortgage dues, it would be difficult for you to save the property. the lender will foreclose the property which will badly effect your credit. if you have a reasonable well credit score, you can try to refinance the mortgage at a lower rate.

thanks
Posted on: 06th May, 2009 10:08 pm
can i still save my home? and how long is the process for foreclosure?
Posted on: 12th May, 2009 01:01 pm
Your query has been answered in the given link:
http://www.mortgagefit.com/bankruptcy/dismissed-savehome.html

Please take a look. I hope you will help you.
Posted on: 13th May, 2009 03:53 am
I just recieved a dismissal in the mail through chapter 13 in North carolina my home is on the chapter 13 and my car. My payments monthly is 1600 and I recently got a new job making less money. I have not payed a full payment since february and I have been making payments as much as I can since then. My question is my home and car are on the chapter 13 plan I don't mind giving up my home but I need my car I am a single mother and need transportation. What do I need to do?
Posted on: 23rd May, 2009 04:02 pm
Hi Cindy!

Welcome to forums!

As your bankruptcy has been discharged, you have lost the protection against your creditors. If you want to save your car, you need to contact your lender and check out if he can give you a payment plan to repay the car loan.

Feel free to ask if you have further queries.

Sussane
Posted on: 24th May, 2009 10:55 pm
I am awaiting my loan modification approval and planning to file chapter 7 after loan modification. Is this going to give me a problem as to my loan modification?
Posted on: 26th May, 2009 07:14 pm
hi kaycee!

welcome to forums!

i don't think you would face any problem to file chapter 7 bankruptcy after loan modification. but as your loan is already modified by the lender, why do you want to file bankruptcy? do you have other unsecured debts?

feel free to ask if you have further queries.

sussane
Posted on: 26th May, 2009 09:35 pm
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