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 kaye,
In bankruptcy filing, you will either get your mortgage discharged or get a repayment plan to pay off the dues under court supervision depending upon the type of bankruptcy you file.
Thanks
In bankruptcy filing, you will either get your mortgage discharged or get a repayment plan to pay off the dues under court supervision depending upon the type of bankruptcy you file.
Thanks
bk dismissed. didn't realize I WAS 3 mos. behind. can creditors immediately come get truck, etc. should I call bk court and ask for appeal and a stay? help
Welcome larry b,
As your bankruptcy has been dismissed, your creditors can come after you immediately in order to recover their dues. You can contact your bankruptcy attorney and take steps to re-file bankruptcy.
As your bankruptcy has been dismissed, your creditors can come after you immediately in order to recover their dues. You can contact your bankruptcy attorney and take steps to re-file bankruptcy.
We live in Florida and are in a 100% repayment chapter 13. If We receive a military monetary bonus, are We entitled to keep it? Thank you.
Hi anonymousemt!
Welcome to forums!
It will be better if you could use that military monetary bonus to pay off your dues under the Chapter 13 repayment plan.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
It will be better if you could use that military monetary bonus to pay off your dues under the Chapter 13 repayment plan.
Feel free to ask if you've further queries.
Sussane
I would but we shortened it to 44 months and r paying a ton and need this $ for a car. Can we do that?
Welcome emt,
You will have to speak to your bankruptcy attorney and the trustee in this regard.
You will have to speak to your bankruptcy attorney and the trustee in this regard.
I want to stop and dismiss my BK and pay off the debt myself through negotiations. I was out of work for a while, but am back on my feet with some money in the bank now and since it's not final, I want to dismiss it. My attorney is saying that it has to go through and I have to give her the money to give to a trustee, to pay off the debt, plus play the trustee another $2000. This does not seem right. I'd rather pay off my own debt and save that money. Any thoughts?
Hi WisFranNeedsHelp,
As you want to get the bankruptcy filing dismissed, you won't have to pay any thing to the trustee and the lawyer. You should contact the bankruptcy trustee and sort out the matter with him.
Thanks,
Jerry
As you want to get the bankruptcy filing dismissed, you won't have to pay any thing to the trustee and the lawyer. You should contact the bankruptcy trustee and sort out the matter with him.
Thanks,
Jerry
I HAVE A PLAN. I AM CURRENT ON THE PLAN FOR PAYMENTS. I WENT OUT AND GOT A PART-TIME JOB TO MAKE UP FOR THE MONEY THAT IS BEING TAKEN FROM MY EMPLOYER DIRECTLY IN THE PLAN. IS THIS LEGAL FOR ME TO DO THIS. WILL I GET IN TROUBLE FOR THIS.
Hi Guest,
You can take out a part time job in order to boost your income. I don't think it will be considered as fraudulent and you can be in trouble for it. Nevertheless, you can have a word with your bankruptcy attorney and take his help in this matter.
You can take out a part time job in order to boost your income. I don't think it will be considered as fraudulent and you can be in trouble for it. Nevertheless, you can have a word with your bankruptcy attorney and take his help in this matter.
Hi Jessica,
I bought a building lot for my daughter when she was in high school.
Her best friends family had 19 lots for sale. The lot is in my name now.
How can I take chapter 13 with this in my name? She is now 23 and the lot is paid for. It is worth about $60,000
Thanks Kel
I bought a building lot for my daughter when she was in high school.
Her best friends family had 19 lots for sale. The lot is in my name now.
How can I take chapter 13 with this in my name? She is now 23 and the lot is paid for. It is worth about $60,000
Thanks Kel
If you file bankruptcy now, you will have to include the lot in your filing. You can transfer the property to your daughter now and wait for at least a year and then file bankruptcy in order to get rid of your other dues.
My chapter 13 was dismissed in 2001, And I still have an automobile that the creditor never picked up and they still have the title. What can I do?
hi acman!
welcome to forums!
your chapter 13 bankruptcy filing was dismissed. in such a situation, if you want to save the automobile, you should contact your lender and set up a payment plan with him and try to pay off the dues.
feel free to ask if you've further queries.
sussane
welcome to forums!
your chapter 13 bankruptcy filing was dismissed. in such a situation, if you want to save the automobile, you should contact your lender and set up a payment plan with him and try to pay off the dues.
feel free to ask if you've further queries.
sussane