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?
i had filed bk and was paying on it for about 4 years i almost had it paid off but once again got in too mmuch debt so it was dismissed and now i have even more debt than befroe can i file bk again now?
Welcome Guest,
As your bankruptcy filing was dismissed, I think you will be able to file bankruptcy again. I will suggest you to have a word with your bankruptcy attorney and take his opinion in this matter.
As your bankruptcy filing was dismissed, I think you will be able to file bankruptcy again. I will suggest you to have a word with your bankruptcy attorney and take his opinion in this matter.
I have a bankruptcy that was dismissed in 2008. I'm not sure if my debt was discharged or not. What exactly does 'discharge debt' mean? I am looking into this now because I have debt collectors calling and threatening to put a lien on my home or garnish my wages. It is all credit card debt and the collectors are not associated with the credit card companies. Thanks for any advice you can give!
Hi Guest,
In bankruptcy filing. when a debt is discharged, it is no longer enforceable against you personally. Thus, you're not personally liable for paying off the debt. The lender may sell off the property to recover as much dues as possible but won't come after you for the deficient balance.
Thanks
In bankruptcy filing. when a debt is discharged, it is no longer enforceable against you personally. Thus, you're not personally liable for paying off the debt. The lender may sell off the property to recover as much dues as possible but won't come after you for the deficient balance.
Thanks
I have been in Chpt 13 for 3 years. My mortgage is included in the plan as I was delinquent due to illness. If I convert the Chpt 13 to a Chpt 7, can I keep my home by paying the past due balance and continuing mortgage payments?
Hi tvan!
Welcome to forums!
You can convert Chapter 13 into Chapter 7 and then reaffirm the mortgage and pay off the dues. This will help you in saving your property.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
You can convert Chapter 13 into Chapter 7 and then reaffirm the mortgage and pay off the dues. This will help you in saving your property.
Feel free to ask if you've further queries.
Sussane
Due some bad advice from an attorney, my husband and I filed for Chapter 7, which we did not meet due to our income. Then being 6 months behind, we again listened to our attorney and filed 13. Immediately they garnished 1/2 my wages, and when we realized what they were paying back was 3/4 of our unsecured debt, we chose to dismiss. What happens to the money that has gone to the trustee, and how long before we see any of it, since it has not gone to any creditors? Do we have a chance of seeing it?
I'm a 19 year old student wealthy to Uconn (as a commuter). I have a side values bright and early job and frame about 400 every two weeks. I give birth to been there for 7 months now and I am in despondent impecuniousness of a car. (my job, my council, my school are on touching 25 min away from each other either progress) I after to retain a heap accommodation but from no established credit. I do have 1000 dollars to catapult down though. Any suggestions or recommendations would be greatly appreciated. Thanks you.
To sggm,
You should contact your bankruptcy trustee and your bankruptcy attorney and check out if you could get a refund of that money.
To inomidymn,
If you don't have any credit record or score, you won't be able to get a car loan.
You should contact your bankruptcy trustee and your bankruptcy attorney and check out if you could get a refund of that money.
To inomidymn,
If you don't have any credit record or score, you won't be able to get a car loan.
My husband and I are in a chapter 13 plan. We owe federal and state taxes that are being paid through the plan. We files married filing separate this past year. My husband owes too much to go into a payment plan, so the irs want us to modify our plan to include his taxes. I am not liable for his taxes!! Can they do this??
If both of you have filed bankruptcy jointly, then the IRS can modify the plan and include his payments as well in the plan.
WHAT DO I DO AFTER SO I WONT LOSE MY HOUST OR PROPERTY
Welcome BRITTANY,
You will have start making the payments on time if you wish to save your property after bankruptcy dismissal. You can even negotiate with the lender for a payment plan which will be helpful for you to pay off the debts.
You will have start making the payments on time if you wish to save your property after bankruptcy dismissal. You can even negotiate with the lender for a payment plan which will be helpful for you to pay off the debts.
I got an automatic dismissal because the lawyer did not correct the Deficiency filing within 45 days. What are the ramifications,and what can i do now?
I got an automatic dismissal because the lawyer did not correct the Deficiency filing within 45 days. What are the ramifications,and what can i do now?