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?
due to missed court dates with creditors, I did not receive any information on whevery pay my court date. My payments were being taken out every pay period and then my case was dismissed on 5/20/2010. How do i go by getting my refund back after a deduction was made after the dismissed date? I had to get another attorney to file my case and started a different case, does this money go towards my new bankruptcy case?
Hi melba,
You need to contact your original bankruptcy attorney and check out what you need to do in order to get the refund. If you get a refund, then you can use that extra money towards your new bankruptcy case.
Thanks,
Jerry
You need to contact your original bankruptcy attorney and check out what you need to do in order to get the refund. If you get a refund, then you can use that extra money towards your new bankruptcy case.
Thanks,
Jerry
our chapter 13 case is being dismissed. what can we do to keep our house from being foreclosed on because it was in with our case.
thank you
camryn
thank you
camryn
Hi Guest,
You'll have to pay the mortgage dues on time in order to save your property from being foreclosed upon by the lender. You may even re-file you bankruptcy case and try to get protection from the bankruptcy court to stop foreclosure proceedings.
Thanks,
Jerry
You'll have to pay the mortgage dues on time in order to save your property from being foreclosed upon by the lender. You may even re-file you bankruptcy case and try to get protection from the bankruptcy court to stop foreclosure proceedings.
Thanks,
Jerry
thanks
i filed for chapt 7 is was dismissed..now what do i do ? I have credators calling.
Hi niko,
As your bankruptcy filing was dismissed, the automatic stay on your creditors have been lifted. Thus, they can come after you for collection of debts. You need to contact your bankruptcy attorney and refile your bankruptcy.
Thanks
As your bankruptcy filing was dismissed, the automatic stay on your creditors have been lifted. Thus, they can come after you for collection of debts. You need to contact your bankruptcy attorney and refile your bankruptcy.
Thanks
We claimed chapter 13 and have 223.00 left , we didn't turn in our taxes or any tax refund..If we don't turn them in within 15 days we will be dismissed..We don't have any of the refund left..Our attorney lost his license to practice, What are our options?
Hi Guest,
If you do not pay back the refund, then your bankruptcy filing will get dismissed. You should immediately contact another bankruptcy attorney and take his opinion as to what steps you need to take so that you bankruptcy filing doesn't get dismissed.
Thanks
If you do not pay back the refund, then your bankruptcy filing will get dismissed. You should immediately contact another bankruptcy attorney and take his opinion as to what steps you need to take so that you bankruptcy filing doesn't get dismissed.
Thanks
I filed Bankruptcy, began to have chest pain, was a nervous wreck. Have not been emotionally stable due to spouse death 7 months ago. My husbund would not have approved of bankruptcy I ws impulsive and not knowing what to do. Bank said they would work with me so I requested a dismissal of my chapter 13 after 2.5 weeks. What will happen to me now? Am I unable to retain the home,car etc. Thank you. At 75 years of age this step(Chapter 13) was very difficult
Welcome Guest,
As your bankruptcy has been dismissed, the lender would have the rights to foreclose the property if you do not pay the dues on time. You should immediately contact your lender and apply for a loan modification. This will help you in paying off your debts in an affordable manner.
As your bankruptcy has been dismissed, the lender would have the rights to foreclose the property if you do not pay the dues on time. You should immediately contact your lender and apply for a loan modification. This will help you in paying off your debts in an affordable manner.
my bankruptcy was dismissed 12/05. no payment has been received for a couple of credit cards since 2003. Is the statue of limitations past? I have had a call from a recovery company for those 2 credit cards and they would like to settle on about 35% of the balance or 25% if I can pay lump sum. I am not in the position to pay them off,,,,what will happen to me? will they garnish my wages?
Hi Guest,
When did the credit card company charge off the account? The stature of limitations (SOL) will be calculated from the day the credit card company charges off the loan. If the time period of the SOL has been over, then the collection agency will not be able to collect the dues from you. In that case you may not settle the dues. However, if the SOL is not over, then you should settle the dues with the collection agency.
Thanks
When did the credit card company charge off the account? The stature of limitations (SOL) will be calculated from the day the credit card company charges off the loan. If the time period of the SOL has been over, then the collection agency will not be able to collect the dues from you. In that case you may not settle the dues. However, if the SOL is not over, then you should settle the dues with the collection agency.
Thanks
Thank you,,,,one more question,,,is SOL when they received last payment or when the bankruptcy was dismissed?
Hi Guest!
Welcome to forums!
The SOL period will start when the account has been charged off and assigned to the collection agency.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
The SOL period will start when the account has been charged off and assigned to the collection agency.
Feel free to ask if you've further queries.
Sussane