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?
Hi Trisha,
Rather than dismissing your bankruptcy case, you should contact your bankruptcy attorney and try to convert Chapter 13 into Chapter 7.
Thanks
Rather than dismissing your bankruptcy case, you should contact your bankruptcy attorney and try to convert Chapter 13 into Chapter 7.
Thanks
how long can i re-file after my case has been dismissed? or how long do i have to wait before i can re-file?
I have renters in NJ, who have not paid the rent for over a year. It took a long time to get a court date to have them evicted. I finally got my day the beginning of this month and was informed by the judge that my renters filed Chap. 13 at 3:30 the day before, so I could not evict. I was informed today that their case is about to be dismissed because they have not followed through with the paperwork. I am willing to go back to eviction court, but what's to stop them from pulling the same stunt again and filing the day before court? I live in Florida and cannot keep making needless trips to get these people out of my house. Is it possible for them to do this again? Will there get a point when they can't do it, because I have no doubt they will try to pull something again.
Thanks
Thanks
Hi Guest,
You can either file Chapter 13 immediately after a dismissal but you'll have to wait for 6 months after a dismissal of your Chapter 7.
Hi TP,
The renters can refile bankruptcy though their bankruptcy filing gets dismissed. However, sometimes the court may give them a time period within which they may not be able to file bankruptcy after the dismissal.
You can either file Chapter 13 immediately after a dismissal but you'll have to wait for 6 months after a dismissal of your Chapter 7.
Hi TP,
The renters can refile bankruptcy though their bankruptcy filing gets dismissed. However, sometimes the court may give them a time period within which they may not be able to file bankruptcy after the dismissal.
My bk was dismissed bc my lawyer did not follow through with her obligations. Now I have the bk on my record and did not reap the benefits of the BK. The lawyer ended up being verbally reprimanded by the state bar. Is there any way to get the Bk off my credit?
Hi wwt,
As you had filed bankruptcy, you won't be able to remove it from your credit report for the next 7 years. Like any other negative item, it will remain on your credit report for the next 7 years.
Thanks
As you had filed bankruptcy, you won't be able to remove it from your credit report for the next 7 years. Like any other negative item, it will remain on your credit report for the next 7 years.
Thanks
My house is in foreclosure... catch is the 'loan' is only in my mothers name who passed away... I am on the deed of trust but the bank does not recognize me as anything... If I file a bankruptcy to stop the aution until we can resolve the 'who ownes what' issue but don't go thru with the bankruptcy... will it stay on MY credit report?
Hi lo!
Welcome to forums!
The lender can foreclose the property though you file bankruptcy as the mortgage is in the name of your mother. You should rather contact the lender and check out if you can transfer the mortgage in your name. However, as the property is in foreclosure, it'll be difficult for you to assume the loan in your name.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
The lender can foreclose the property though you file bankruptcy as the mortgage is in the name of your mother. You should rather contact the lender and check out if you can transfer the mortgage in your name. However, as the property is in foreclosure, it'll be difficult for you to assume the loan in your name.
Feel free to ask if you've further queries.
Sussane
we were in bankruptcy for 4 years paid all creditors exept IRS and Ford Motor Credit. in the mist of it all we had our home foreclosed on and is in the mist of filing a wrongful foreclosure, with that being said our bankruptcy atty wants us to catch up on payments which would total 2K but in the mean time the car which was in bankruptcy no longer works we owe 790.00 to finish them off and 3,900 to IRS if feel it is to our best interst just to contact all parties that are still owed and negotiate.
Hi simone,
In case of IRS debts, you should contact them and ask for a repayment plan. The IRS will give you a repayment plan which will help you in paying off the debts in full. As far as Ford Motor Credit is concerned, you should contact them and ask for settlement.
Thanks
In case of IRS debts, you should contact them and ask for a repayment plan. The IRS will give you a repayment plan which will help you in paying off the debts in full. As far as Ford Motor Credit is concerned, you should contact them and ask for settlement.
Thanks
I have money sitiing in my "balance on hand" from payments that were not disbursed before my case was dismissed. What happens to that money? Will I get it back or will they give it to my creditors? We are refiling for ch 13 this week.
Hi haley!
Welcome to forums!
As the bankruptcy filing was dismissed, the court may give back the money to you. In my opinion, you should have a word with your bankruptcy attorney and take his opinion in this matter.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
As the bankruptcy filing was dismissed, the court may give back the money to you. In my opinion, you should have a word with your bankruptcy attorney and take his opinion in this matter.
Feel free to ask if you've further queries.
Sussane
i was not informed about my first appointment and cannot make the 2nd meeting,they say they will dismiss the case if so,can i refile or what other options are there
Welcome ivanfuller,
You will be able to refile your bankruptcy case if it is dismissed by the court. Once the case is dismissed, you should contact your bankruptcy attorney and take his opinion regarding refiling of the case.
You will be able to refile your bankruptcy case if it is dismissed by the court. Once the case is dismissed, you should contact your bankruptcy attorney and take his opinion regarding refiling of the case.
can i file a chapter 7 after dismissing achapter 13 if my last chapter 7 was in 2005