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?
My bankruptcy was dismissed 2yrs ago and when i pulled my credit report 2 days ago it showed me with a zero balance. How would that effect me with my creditors that i had made arrangements with thru my bankruptcy?
hi,
to dwill,
you can contact a bankruptcy attorney and convert your chapter 13 bankruptcy into chapter 7. he will tell you what steps you need to take in this regard.
to kimberlyh,
if your bankruptcy is dismissed, then you still owe your debts to the debtors if you've not cleared it. the arrangements that you had made during the bankruptcy would be considered as null and void as it was dismissed.
thanks
to dwill,
you can contact a bankruptcy attorney and convert your chapter 13 bankruptcy into chapter 7. he will tell you what steps you need to take in this regard.
to kimberlyh,
if your bankruptcy is dismissed, then you still owe your debts to the debtors if you've not cleared it. the arrangements that you had made during the bankruptcy would be considered as null and void as it was dismissed.
thanks
I have paid my Bankruptcy obligations for 2 1/2 years at $150 per month. However, since I retired at age 75, I only have a fixed income of $1600 and do not have the resources to make any more payments. After 4 months of my not paying my obligation to the Courts, my bankruptcy has been released. I am in the process of applying for welfare, and since I retired, financially i have no way I can make any payments. What's the worst possible thing that could happen. Do they still have debtor's prison??????
I appreciate your advice.
I appreciate your advice.
What happens if I sell my property (land) before chapter7 discharge. I yet owe installment fees to the attorney and courts?
Hi!
Welcome to forums!
To Marge,
If you do not pay your obligations to the court, there are chances that your bankruptcy would be dismissed. Thus, the lender will get the rights to foreclose the property. It will affect your credit and you would be liable to clear off the deficient amount resulting from the foreclosure sale.
To Fl Walker,
I don't think you would be able to sell off your property before your Chapter 7 discharge. The property is included in bankruptcy and the trustee will not allow you to sell it off.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
To Marge,
If you do not pay your obligations to the court, there are chances that your bankruptcy would be dismissed. Thus, the lender will get the rights to foreclose the property. It will affect your credit and you would be liable to clear off the deficient amount resulting from the foreclosure sale.
To Fl Walker,
I don't think you would be able to sell off your property before your Chapter 7 discharge. The property is included in bankruptcy and the trustee will not allow you to sell it off.
Feel free to ask if you've further queries.
Sussane
My Chapter 13 was dismissed and I want to know how long will I have to file appeal?
Hi Black Cat!
Welcome to forums!
You will be able to refile bankruptcy immediately after it's dismissed. You should contact your bankruptcy attorney and check out his opinion in this regard.
Sussane
Welcome to forums!
You will be able to refile bankruptcy immediately after it's dismissed. You should contact your bankruptcy attorney and check out his opinion in this regard.
Sussane
deanna what are my options im planning to file a motion to reinstate my ch. 13 to help me save my home. Or try to work something out with the Mortgage co.
Hi deanna,
You can contact your bankruptcy attorney and refile Chapter 13 to save your property. This will help you save your property as you'll get a new payment plan to pay off the mortgage dues within 3-5 years.
Negotiating with the mortgage company to get a loan modification can also be a good option to save the property.
You can contact your bankruptcy attorney and refile Chapter 13 to save your property. This will help you save your property as you'll get a new payment plan to pay off the mortgage dues within 3-5 years.
Negotiating with the mortgage company to get a loan modification can also be a good option to save the property.
i was dismissed
Hi amy!
Welcome to forums!
As far as I know, you'll be able to refile chapter 13 after it has been dismissed. You should contact your bankruptcy attorney and he will let you know about the steps that you need to take in this regard.
Sussane
Welcome to forums!
As far as I know, you'll be able to refile chapter 13 after it has been dismissed. You should contact your bankruptcy attorney and he will let you know about the steps that you need to take in this regard.
Sussane
if i fail behind on my payments and my chapter 13 was dismissed. can i refile and add 3 payday loans
You'll be able to refile your bankruptcy immediately if the court has not barred you from filing it for a certain period of time. Once you refile your bankruptcy, you'll be able to add payday loans to it.
My chapter 13 case was dismissed because my attorney and I missed a court date. I was unaware of the court date and my attorney was sick. As a result, my car was repossessed. I immediately contacted my attorney. He acknowledged his mistake and said he would fix it. My car is due for sale tomorrow and the court has not received a motion to re-open. My attorney lied and said he filed a motion he did not. He said even if he had filed the motion, I would not get my car back if my case was re-opened within the time frame I had for the notice of sale from the lien holder. Is that correct or is his yet telling me another lie?
Hi WINSTON!
Welcome to forums!
If the case would have re-opened on time, then the sale would not have taken place as there would have been an automatic stay on your creditors which would have barred them from taking any actions against you.
Sussane
Welcome to forums!
If the case would have re-opened on time, then the sale would not have taken place as there would have been an automatic stay on your creditors which would have barred them from taking any actions against you.
Sussane