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?
Court ordered monie to be returned to me how long does that take
Hi rp,
Your bankruptcy trustee and the bankruptcy attorney will be the best person to let you know about this. You should contact them in order to know about the time period.
Thanks
Your bankruptcy trustee and the bankruptcy attorney will be the best person to let you know about this. You should contact them in order to know about the time period.
Thanks
i filed papers for chapter 13 bankruptcy, but haven't been to court yet. i am thinking about not going to court and not going through with the bankruptcy. if i don't show will my case be dismissed anf thrown out?
Hi ARCHIE!
Welcome to forums!
If you don't contact the court on the given date, your bankruptcy case will be dismissed. However, as you've filed it, the bankruptcy filing will remain on your credit report.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
If you don't contact the court on the given date, your bankruptcy case will be dismissed. However, as you've filed it, the bankruptcy filing will remain on your credit report.
Feel free to ask if you've further queries.
Sussane
i recently filed chapter 13 in oregon everything went through and finalized in august.in september the va found me disabled and am going to be receiving a check for around 25000.00 from 2004 till now.then they will send a check for dependents for aroung 6000 im guessing.is this exempt and do i have to report it since its non taxable and dont have to report it on my taxes and if i dont say anything can they dismiss my case
Hi anonymous,
You will have to notify the trustee about the check that you would be receiving from VA. The trustee will let you know whether or not they would use the money to pay off your creditors.
You will have to notify the trustee about the check that you would be receiving from VA. The trustee will let you know whether or not they would use the money to pay off your creditors.
My case was dismissed in Jun 2009, and creditors are asking for payment what if I can't repay them is it lawful for them to garish my wages.
Thanks
looking for answers
Thanks
looking for answers
Hi Guest,
As your case was dismissed, the creditors have the rights to collect the dues from you. If you're unable to pay them, then the creditors can file a lawsuit against you and garnish your wages.
Thanks
As your case was dismissed, the creditors have the rights to collect the dues from you. If you're unable to pay them, then the creditors can file a lawsuit against you and garnish your wages.
Thanks
Hi,
I am considering filing chapter 13, and had a question about two pieces of property I have financed - a motorcycle which I financed in May of this year and a boat which I financed in December of 2009. I still owe money on both. What implications does this have for my filing of a chapter 13? Thanks in advance
I am considering filing chapter 13, and had a question about two pieces of property I have financed - a motorcycle which I financed in May of this year and a boat which I financed in December of 2009. I still owe money on both. What implications does this have for my filing of a chapter 13? Thanks in advance
Hi Rob,
If you include both the properties in your bankruptcy filing, then your creditors will provide you with a repayment plan depending upon your financial situation. You can pay off the dues as per that plan and save your property.
Thanks
If you include both the properties in your bankruptcy filing, then your creditors will provide you with a repayment plan depending upon your financial situation. You can pay off the dues as per that plan and save your property.
Thanks
If someone has two vehicles seized because of a writ of fieri facias and they are about to be sold at a Sheriffs sale then the person files bankruptcy. Because of the automatic stay they get their vehicles back, then because all info wasn't disclosed, the bankruptcy case is dismissed. Two days later the vehicles were put into the ex-wife's name before another writ of fit fa could be issued. What can be done about this, it can't be legal. Thanks for your help!
Hi MMoore,
I don't think transferring of property in the ex-wife's name will be considered as legal. You need to contact a real estate attorney and take his opinion in this matter. The attorney will be able to guide you in this matter.
Thanks
I don't think transferring of property in the ex-wife's name will be considered as legal. You need to contact a real estate attorney and take his opinion in this matter. The attorney will be able to guide you in this matter.
Thanks
I filed a chapter 7 in 12/27/2000 after divorce. In 2008 I started becoming ill and had numerous bills from medical tests etc as well as living on credit while looking for work previously.I went to file a chapter 7 in 4/2008 & was told it was too early due to new bankruptcy laws. So I went with a Chapter 13 since I had a good job by this time. I was becoming sicker and 6/09 I was diagnosed with MS. I had been making planned payments regularly up until 3/09 but state job had furloughed u 2 times a month and took away performance pay.I couldn't make payments so lawyer stated to let it go until court requested we re-do it to lower plan payments.With the courts so back logged in AZ I didn't hear anything until 4/2010. By this time I was out of work because my MS has gotten so bad. I am not waiting for social security disability to start in Dec. I will not have means to pay a chapter 13.My lawyer suggested we could convert to a chapter 7 but at creditor meeting trustee said I couldn't do it. So now I am in limbo. I can let the 13 be dismissed but when can I refile a Chapter 7? I am frustrated and very ill and want this resolved. Plus I am worried now about creditors coming after me. My lawyer made an error but damage is done. Thank you very much
hi cherby,
as far as i know, you will be able to file chapter 7 bankruptcy 8 years after your previous chapter 7 filing. you should speak to your bankruptcy attorney and he will help you further in this matter.
thanks
as far as i know, you will be able to file chapter 7 bankruptcy 8 years after your previous chapter 7 filing. you should speak to your bankruptcy attorney and he will help you further in this matter.
thanks
My chp 13 was voluntarily dismissed before a meeting of creditors and I want it removed form my credit report. Can you give me any help?