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 nancy!
Welcome to forums!
If your bankruptcy filing is dismissed, then you will be normally liable for paying the credit card debts in full. However, if your bankruptcy filing is discharged, then your creditor won't be able to come after you for the debts.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
If your bankruptcy filing is dismissed, then you will be normally liable for paying the credit card debts in full. However, if your bankruptcy filing is discharged, then your creditor won't be able to come after you for the debts.
Feel free to ask if you've further queries.
Sussane
I filed a chap 13 and missed understood the payment schedule. The week prior to my hearing payments began being withheld from my payroll and continue to do so. When I was informed of the issue at the hearing I made arrangementments and did resolve the back balance the next day. However the court has filed for dismal. They also said my family doesn't need two cars but I work more than full time and my wife attends school full time an hr from our home. I am really feeling taken advantage of and don't know what to do. Could you please give me some advice
Hi Guest,
You should immediately contact your bankruptcy attorney and take his opinion in this regard. The attorney will look into the whole matter let you know whether or not anything could be done. However, as far as I know, once you default on the payments, your bankruptcy filing may get dismissed.
Thanks
You should immediately contact your bankruptcy attorney and take his opinion in this regard. The attorney will look into the whole matter let you know whether or not anything could be done. However, as far as I know, once you default on the payments, your bankruptcy filing may get dismissed.
Thanks
Iam a self employed person operating a clothing retail store and I filed chapter 13 thru an attorney. During the hearing, the trustee told me that the total deposit amount in my business bank statement does not tally with the gross sales amount in the profit and lost statement that I submitted. I explain to the trustee that not all of the amounts deposited in the bussiness bank account are sales from the business, some of them are personal loans coming from individuals who are helping us from time to time to sustain the business during this hard times. Later on that day, during the confirmation hearing, my case was dismissd. I was hoping that they will give me a chance to formally explain but they just dismissed my case. What will I do now?
Welcome Sonny,
A query similar to yours has been replied to in the given page:
http://www.mortgagefit.com/Dealing-with-Mortgage-Problems/What-will-I-do-now-that-my-chapter-13-case-was-dismissed.html
Take a look at it. I hope it will help you.
A query similar to yours has been replied to in the given page:
http://www.mortgagefit.com/Dealing-with-Mortgage-Problems/What-will-I-do-now-that-my-chapter-13-case-was-dismissed.html
Take a look at it. I hope it will help you.
I don't understand why I have to carry this monkey on my back for 10 years...
I filed out the forms Pro Se, then mailed them in. The clerk called me to tell me that one of the pages was improperly formatted - I didn't have a diskette with the creditors' information on it, so I should have made a printed sheet formatted 2 columns, exactly so many spaces wide, etc. That was the only error in my application - a formatting error.
After a few days, I came to my senses and decided not to pursue the bankruptcy. I only had about $20k in debts. I called the clerk back and told him I was not going to file for bankruptcy.
Now, when I am looking at my credit report 4 years later, I see that the "Public Record" page of the report states "Bankruptcy Dismissed."
I see that a bankruptcy can ber "dismissed" because "You do not file necessary paperwork." However, in this case, I withdrew the application, before filing it.
The application was not filed the first time becuase of a formatting error. It was not filed the second time because I chose not to file it. So how can it be "dismissed" if I withdrew the application before it was even properly filed?
I filed out the forms Pro Se, then mailed them in. The clerk called me to tell me that one of the pages was improperly formatted - I didn't have a diskette with the creditors' information on it, so I should have made a printed sheet formatted 2 columns, exactly so many spaces wide, etc. That was the only error in my application - a formatting error.
After a few days, I came to my senses and decided not to pursue the bankruptcy. I only had about $20k in debts. I called the clerk back and told him I was not going to file for bankruptcy.
Now, when I am looking at my credit report 4 years later, I see that the "Public Record" page of the report states "Bankruptcy Dismissed."
I see that a bankruptcy can ber "dismissed" because "You do not file necessary paperwork." However, in this case, I withdrew the application, before filing it.
The application was not filed the first time becuase of a formatting error. It was not filed the second time because I chose not to file it. So how can it be "dismissed" if I withdrew the application before it was even properly filed?
Hi Writer,
You should get in touch with the credit bureaus and try to negotiate with them so that they can update the status in your credit report.
Thanks
You should get in touch with the credit bureaus and try to negotiate with them so that they can update the status in your credit report.
Thanks
After a bankrupcy case is dismissed, can money be returned that was being taken out of my paycheck?
Welcome orlando,
I don't think that the money will be returned back to you. Moreover, it was used to pay off part of your debts that you owed to your creditors.
I don't think that the money will be returned back to you. Moreover, it was used to pay off part of your debts that you owed to your creditors.
I filed a chapter 7 they claimed because I didn't include my assetts that were in storage that it was fraudelent. My attorney knew about this didn't list it. It is used clothes, that I have liquidated from a clothing business and sold to another person.
I inturned filed a chapter 13 for all of my medical bills-I didn't have one credit card-now IRS put a lein on my assetts-took 3800.00 of taxes I only owe $1151.38 I will be clear and free from them.
I have a judgement from my business -lease default for 20k can my husband still get garnished?
I am so confussed -i think I will be better off getting it dismissed what do you think
I inturned filed a chapter 13 for all of my medical bills-I didn't have one credit card-now IRS put a lein on my assetts-took 3800.00 of taxes I only owe $1151.38 I will be clear and free from them.
I have a judgement from my business -lease default for 20k can my husband still get garnished?
I am so confussed -i think I will be better off getting it dismissed what do you think
Hi mary,
It is fraudulent to not list your assets clearly in your bankruptcy filing. In such a situation, it will be better to get the bankruptcy filing dismissed.
Thanks
It is fraudulent to not list your assets clearly in your bankruptcy filing. In such a situation, it will be better to get the bankruptcy filing dismissed.
Thanks
I am in the Army and was deployed overseas and my case was dismissed because i missed some payments...my wife had the duty of paying every month and she was but some of the payments never made it and then when i arrived home from overseas i found out my case was being dismissed...it was dismissed in july2012 and I didn't arrive home till sept2012...can the relief act help me...please help
Welcome tom,
This is something which you need to discuss with your bankruptcy attorney. The attorney will help you know whether or not you will get any help under the relief act.
This is something which you need to discuss with your bankruptcy attorney. The attorney will help you know whether or not you will get any help under the relief act.
The court ordered dismissal and gave 14 days to convert to Ch. 7. Trustee motioned for dismissal while in possession of payment. Can they take my payments during the 14 days and still dismiss?
If the bankruptcy filing gets dismissed, then there are chances that you may get back the money. But again, if he has already utilised the money for paying some of your debts, then you may not get it back.