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?
ch. 13 dismissed in 2005 collectors just contacted about credit card on it 1st isn't statue of limitation up? 2nd what happened to 65% that was paid of bankruptcy?
Hi Carolyn,
Though the bankruptcy filing has been dismissed, it will remain mentioned in your credit report for the next 7 years. I don't think you'll be able to remove it from your credit report now.
To kip,
You did not complete the repayment plan offered to you when you filed Chapter 13. So, the creditors will have the rights to come after you and collect the rest of the balance. As far as statute of limitations(SOL) is concerned, it will depend upon your state laws.
Thanks
Though the bankruptcy filing has been dismissed, it will remain mentioned in your credit report for the next 7 years. I don't think you'll be able to remove it from your credit report now.
To kip,
You did not complete the repayment plan offered to you when you filed Chapter 13. So, the creditors will have the rights to come after you and collect the rest of the balance. As far as statute of limitations(SOL) is concerned, it will depend upon your state laws.
Thanks
I filed (chapter 7) 6 years ago and just filed another one this year with out knowing it was every 8 years my case is about to be dismiss what options do I have.
Welcome Gina,
It is true that you won't be able to file Chapter 7 bankruptcy prior to 8 years of your previous filing. As you filed bankruptcy before 8 years of your previous filing, your case will get dismissed. There's hardly anything that you can do in this regard.
It is true that you won't be able to file Chapter 7 bankruptcy prior to 8 years of your previous filing. As you filed bankruptcy before 8 years of your previous filing, your case will get dismissed. There's hardly anything that you can do in this regard.
Will this mean i will lose my house and car? Will I be responsible for ALL bills including his? Should I file chapter 7? HElp stressed severly
we got a dismisal letter in the mail and we go back to court in 30 days. We have missed the last 3 months of our 36 month plan. We let our house go durning the plan and all I have left is our truck. Can I convert to a 7 and keep my truck or what can I do. Got to keep my truck it is my job life to work...
hi anonymous,
the chapter 13 bankruptcy filing of your ex has been dismissed. in such a situation, the lender will be able to come after both of you in order to recover the dues. if your ex would have received a discharge from the bankruptcy filing, then you would have been responsible for the dues in full.
hi guest,
you can convert your chapter 13 bankruptcy filing into chapter 7. but you've mentioned that your bankruptcy filing has been discharged. in that case, you'll have to file the bankruptcy afresh. you should contact your bankruptcy attorney and check out whether or not you qualify for chapter 7 filing.
thanks
the chapter 13 bankruptcy filing of your ex has been dismissed. in such a situation, the lender will be able to come after both of you in order to recover the dues. if your ex would have received a discharge from the bankruptcy filing, then you would have been responsible for the dues in full.
hi guest,
you can convert your chapter 13 bankruptcy filing into chapter 7. but you've mentioned that your bankruptcy filing has been discharged. in that case, you'll have to file the bankruptcy afresh. you should contact your bankruptcy attorney and check out whether or not you qualify for chapter 7 filing.
thanks
my bank got me in a modification i was told not to pay july and august payment but make september payment which i did i told the bank to draft it from my account on the 25th i just got into the chapter 13 for 3 months now september was my first mortgage payment i got a call from my attorney office to fax something showing that it was paid i did i guess it was to late i got a dismissel letter from my 13,so what can i do to let them no it was paid and stay on chapter 13
Hi Guest,
You need to contact your bankruptcy attorney and discuss the matter with him. He will help you in refiling the bankruptcy and help you in reorganizing your debts.
Take care.
You need to contact your bankruptcy attorney and discuss the matter with him. He will help you in refiling the bankruptcy and help you in reorganizing your debts.
Take care.
What do I do now that my BK was dismissed for not filing all the paperwork
What if I don't have an attorney
Do you think I need to get an attorney if i need to re-file my dismissed BK case?
i filed bk chapter 13 everything went well i made my payments on time to the trustee, even my mortgage payments, my bank inform me since their doing a modification to hold back 2 months which i did and make the full payment the following month which i did my attorney even knew about this then all of a sudden i got a letter from court saying my case was dismiss now its been a month i been talking to my attorney secretary and not him i seen nothing yet,no call back or anything what can i do
Hi!
Welcome to forums!
To Wen Wen,
It will be better if you could take the help of an attorney while refiling your bankruptcy. The attorney will guide you as to what steps you need to take in order to refile it.
To Guest,
If your bankruptcy filing has been dismissed, then you will have to refile bankruptcy if you wish to get rid of your debts.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
To Wen Wen,
It will be better if you could take the help of an attorney while refiling your bankruptcy. The attorney will guide you as to what steps you need to take in order to refile it.
To Guest,
If your bankruptcy filing has been dismissed, then you will have to refile bankruptcy if you wish to get rid of your debts.
Feel free to ask if you've further queries.
Sussane
My husband and I are in Chapter 13 due to my mental illness. I have had a hard time with keeping a job and repaying my part of the BK. I also have to see a Doctor and take Medication to control my illness. Im afraid that the trustee will dismiss our case cause i am unable to pay. We had it modified but did not help. Need to file 7. My question is: If we dismiss our Chapter 13 before the court does, how soon can we file 7? We live in Tennessee