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?
Welcome hseay,
You will have to wait for 8 years since your previous Chapter 7 filing in order to file it again. Thus, you won't be able to file Chapter 7 now.
You will have to wait for 8 years since your previous Chapter 7 filing in order to file it again. Thus, you won't be able to file Chapter 7 now.
I change my mind of chapter 13 i ask for a dismissal in 1 month can i file again
Hi zory!
Welcome to forums!
You may be able to file Chapter 13 again after dismissal. You should contact your bankruptcy attorney and take his opinion in this regard. He will let you know how you can refile your bankruptcy.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
You may be able to file Chapter 13 again after dismissal. You should contact your bankruptcy attorney and take his opinion in this regard. He will let you know how you can refile your bankruptcy.
Feel free to ask if you've further queries.
Sussane
unsecured debt,that mean loan money from friend & family only" Hand Note" then signature by both side,It's legal by the law ? Lender can sue in court if I fail to pay them money I owe? can I list their name when I file Bk? Thanks
Hi Nguyen,
If there is an agreement stating that you have taken the money and pledge to return it after a certain time period, then you're bound to pay it off. If you don't pay it off, the creditor can sue you in the court.
If there is an agreement stating that you have taken the money and pledge to return it after a certain time period, then you're bound to pay it off. If you don't pay it off, the creditor can sue you in the court.
can i get my car back after a chapter 13 dismissal even if i payed the proposed amount of the plan in full by filing chapter 7.
Hi tooley!
Welcome to the forums!
If your car has been sold off already, then you won't be able to get it back. If the car hasn't been sold off, then you will have to make regular payments to the lender and save the car from being repossessed.
Feel free to ask if you've further queries.
Sussane
Welcome to the forums!
If your car has been sold off already, then you won't be able to get it back. If the car hasn't been sold off, then you will have to make regular payments to the lender and save the car from being repossessed.
Feel free to ask if you've further queries.
Sussane
I'm in active Ch 13 BK, going on 3rd year. Fell behind on mortgage payments in October and they removed the Automatic stay. My attorney was disbarred 1 year ago and now can't get any attorney to take my case and mortgage co. won't work with me because I'm an active BK. The foreclosure attorney restarted the foreclosure and said I have 90 days to cure the default. I don't know what to do.Is there any solution?
Hi Guest!
Welcome to forums!
It is true that as you're in your bankruptcy filing, the lender will not negotiate with you. If you do not cure the default, then the attorney will foreclose your property. Thus, in my opinion, you should try and cure the default.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
It is true that as you're in your bankruptcy filing, the lender will not negotiate with you. If you do not cure the default, then the attorney will foreclose your property. Thus, in my opinion, you should try and cure the default.
Feel free to ask if you've further queries.
Sussane
We had our Chapter 13 dismissed due to not submitting our taxes (delayed because we owed after reducing our witholding per their recommendation, still a bad idea). This was 8 days ago. How long do I have to appeal? I am confused because I read different things
Hi aprilcoder!
Welcome to forums!
Once your bankruptcy filing has been dismissed, you will have to refile it. You should contact your bankruptcy attorney and take the required steps in order to refile it.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
Once your bankruptcy filing has been dismissed, you will have to refile it. You should contact your bankruptcy attorney and take the required steps in order to refile it.
Feel free to ask if you've further queries.
Sussane
My Mortgage Co was granted a relief from stay which was the reason I filled. Now they raised the payments through a loan modification proess. What happens with the unsecured debt if the case is dismissed?
Welcome Candice,
If your bankruptcy filing is dismissed, then your creditors will be able to come after you for their balance dues.
If your bankruptcy filing is dismissed, then your creditors will be able to come after you for their balance dues.
We paid every payment on time for 5 yrs and are being told now that it's not enough. We still owe and now it's been dismissed. The mortgage is threatening foreclosure. We feel as though the lawyer and trustee just took our money and did nothing to help. We owe more to some people now then we did 5 yrs ago. Any recourse?
Hi Ljkj,
If the bankruptcy filing has been dismissed, then the lender has the rights to foreclose the property. In such a situation, I will suggest you to contact another bankruptcy attorney and check out if he or she can help you in this matter.
Thanks
If the bankruptcy filing has been dismissed, then the lender has the rights to foreclose the property. In such a situation, I will suggest you to contact another bankruptcy attorney and check out if he or she can help you in this matter.
Thanks