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 suppose you will be liable to pay the debts and dues on that account only. Please contact the attorney for what is stated in the divorce statement.
Hi Retheah,
If the account was awarded to your ex-husband during the divorce settlement, you need to inform the creditor about that. As the account was awarded to him, I don't think you would be held responsible for the payments.
Thanks
If the account was awarded to your ex-husband during the divorce settlement, you need to inform the creditor about that. As the account was awarded to him, I don't think you would be held responsible for the payments.
Thanks
I motioned to have my chapter 13 voluntarily dismissed and it was done. Will I lose my car which I owe and and obtained with a false ssn, can i file for chapter 7 and how long can i do this
Hi Stacye,
As your Chapter 13 bankruptcy filing has been dismissed, the car lender can now claim the dues from you and sue you for the debts. As far as the false ssn number is concerned, this could be considered as a fraud and a lawsuit can be filed against you.
You can definitely file Chapter 7 bankruptcy. You should contact your bankruptcy attorney and check out what you need to do in this regard.
Thanks
As your Chapter 13 bankruptcy filing has been dismissed, the car lender can now claim the dues from you and sue you for the debts. As far as the false ssn number is concerned, this could be considered as a fraud and a lawsuit can be filed against you.
You can definitely file Chapter 7 bankruptcy. You should contact your bankruptcy attorney and check out what you need to do in this regard.
Thanks
Thanks for the help guys, hopefully I can get this ironed out and I'll let you know how it works out.
we were making an average of about 1000 more per month for the period when we filed chapter 13;we presented all vehicles and property when we filed;now my lawyer says we have too much equity and make too much;coutr ordered payment is abt 75% of our income.do i have any options?
Hi mary!
Welcome to forums!
If you've too much equity in the property, you won't be able to file Chapter 7 bankruptcy. But it won't bar you from filing Chapter 13 bankruptcy. As far as your payments are concerned, it will depend upon your financial situation. Your lender would check your financial situation and based on that he would give you a repayment plan. This will help you in paying off the dues within 3-5 years.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
If you've too much equity in the property, you won't be able to file Chapter 7 bankruptcy. But it won't bar you from filing Chapter 13 bankruptcy. As far as your payments are concerned, it will depend upon your financial situation. Your lender would check your financial situation and based on that he would give you a repayment plan. This will help you in paying off the dues within 3-5 years.
Feel free to ask if you've further queries.
Sussane
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If I forgot to reaffirm a loan when filing can it be reaffirmed at the 341 meeting?
Welcome Dorothy,
It is better to reaffirm the loan before your bankruptcy is discharged by the court. Once the bankruptcy is discharged, it would be difficult for you to reaffirm the loan. In such a situation, you'll have to reopen your bankruptcy and get the loan reaffirmed.
It is better to reaffirm the loan before your bankruptcy is discharged by the court. Once the bankruptcy is discharged, it would be difficult for you to reaffirm the loan. In such a situation, you'll have to reopen your bankruptcy and get the loan reaffirmed.
i went to court for the 1st time on last tuesday and recived notice today that it was dismissed due to some errors not of my own. can these errors be corrected by the confirmation hearing or has it been dismissed completely
Hi yolanda,
If your bankruptcy has been dismissed by the court, then you will have to re-file your bankruptcy. You can contact your bankruptcy attorney and he would let you know what steps you need to take in this regard.
Thanks
If your bankruptcy has been dismissed by the court, then you will have to re-file your bankruptcy. You can contact your bankruptcy attorney and he would let you know what steps you need to take in this regard.
Thanks
I filed bankrupcy over 2 years ago after my husband passed away-have a judgement from South Dakota and collection agency there-I took both courses one before and one after s0 I thought bankrupcy had gone through-never informent it was dismissed-I have no assests except car that i still owe on and personal household item and clothes-I recieve a SS check of $608 a month and about $360 in self employment-can they take anything from me in Nebraska-do I need to see a lawyer and can I file again? Thanks
Hi Linda!
Welcome to forums!
As your bankruptcy was dismissed, your creditors can sue you for the debts. However, as far as I know, your creditors will not be able to garnish your social security income. If you want to file bankruptcy again, you can contact an attorney and take his opinion. I don't think you would face any issues while filing bankruptcy again.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
As your bankruptcy was dismissed, your creditors can sue you for the debts. However, as far as I know, your creditors will not be able to garnish your social security income. If you want to file bankruptcy again, you can contact an attorney and take his opinion. I don't think you would face any issues while filing bankruptcy again.
Feel free to ask if you've further queries.
Sussane
I'm currently on chapter 13 for 26 months. I spoke with my lawyer about how much longer we had to she stated that we could apply for chapter 7. The only thing is I have a car and house that are no paid for. I'm update on my house but owe 900.00 more on my car. The lien holder on the car may not except the chapter 7. I'm afraid he will come and pick up my car. I'm okay with my house they will probably continue to let us pay our normal mortgage payment. I live in tennessee, I've sort of had bad experiences with the chapter 13(lawyer). I want file because all I have left is credit cards and misc. stuff.