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?
If my chapter 7 case is dismissed for whatever reason...does the court notify the creditors it's dismissed ? And if so in what manner do they notify the creditors ?
Thanks !
Thanks !
As far as I know, you will be informed about your bankruptcy dismissal. Your bankruptcy attorney will help you know whether or not your filing has been dismissed.
My BK 13 was filed 4/30/09 mainly to try to save my home. I am ignorant as to what actually is happening other than I am paying around $2600 per mo. to the trustee. 99% I was told would pay the two mortgages on my home and the unsecured debtor would get the rest. I was totally unaware that my mortgage companies have received NOTHING of what I have been paying in so far because my case has not been 'confirmed.' This means I will not have mortgage interest to deduct when I file my taxes. I rely on the refund to pay my past due Property Taxes. Now I can't do that. It is just a mess. If I choose to dismiss my 13 will the money I have been paying to the trustee be refunded to me? Or, at least will they use the funds to pay the mortgage companies? Finally, a dismissal means my unsecured debtors will once again come after me. What is the worst that can happen beyond everyone suing me and having 25% of my wages garnished? I could still pay my mortgages. My unsecured debt is about 50K. Is it possible that ALL my big unsecured debtors will come after me again or have they possibly written it off?
I forgot to mention that my FIRST mortgage is around $250k, while my SECOND is around $95k. Can the 2nd mortgage company force a foreclosure on my property? I guess what I am getting at is I dismiss my 13 BK, what "power" does the 2nd mortgage co have? Can they sue along with other unsecured debtors and become part of what I think would be my 25% wage garnishment? I want to pay everyone what I can, but my current 13 BK leaves me with $900 per month to pay for EVERYTHING. I have to do something. I will try to sell my house, what about in the meantime? Home sales are slow and it is likely thay I owe MORE than the home is worth. Sorry for the long question. My state is ARKANSAS.
You will have to speak to your bankruptcy attorney and check out whether or not you would get the amount back. If your bankruptcy filing gets dismissed, the lender/creditor will be able to come after you. The lender will be able to foreclose the property and the second lender will be able to sue you for the dues. If you are unable to pay off the second loan, then the lender will be able to garnish your wages.
My chapter 7 was dismissed because my lawyer did not file my debt management certificate. Now they are telling me that my only option is to refile. How will this affect me and is this the correct way to proceed? Should I contact another lawyer?
Hi js,
The bankruptcy dismissal will be mentioned in your credit report as a negative item. If you want to go ahead with the bankruptcy, then you will have to refile it and get a discharge. It would be completely your discretion whether or not you want to stick to the same attorney or go for another lawyer.
Take care.
The bankruptcy dismissal will be mentioned in your credit report as a negative item. If you want to go ahead with the bankruptcy, then you will have to refile it and get a discharge. It would be completely your discretion whether or not you want to stick to the same attorney or go for another lawyer.
Take care.
If I'm divorcing and we are currently in a Chapter 13 where his wages are garnished can I file chapter 7 and have all my debts brought over to my C7 and not be responsible for any of his C13 debt in his name? How does that work if we are Co-signors and I C7 on those as well?
As you are in Chapter 13 right now, I don't think you will be able to file Chapter 7 immediately. You will have get your Chapter 13 discharged first and then file Chapter 7. Your best best would be to contact your bankruptcy attorney and take his suggestions in this regard.
If my chapeter 13 is dismissed for not making payments do i have to pay off the previous attorney fees before i can refile?
Will my case be dismissed if I owe the irs during my bankruptcy?
To Guest,
The attorney will want his dues to be cleared off. However, you can pay him off even after you refile bankruptcy.
To mitch,
The default taxes will not get discharged in bankruptcy. You will have to pay it off on your own. However, I don't think your bankruptcy would be dismissed if you owe money to IRS.
The attorney will want his dues to be cleared off. However, you can pay him off even after you refile bankruptcy.
To mitch,
The default taxes will not get discharged in bankruptcy. You will have to pay it off on your own. However, I don't think your bankruptcy would be dismissed if you owe money to IRS.
I filed for an extention and the Court Clerk did not enter the extention until the following afternoon after the Case Manager dismissed the case. What can I do to have the decision overturned?
Hi stephaniegmcd,
As the bankruptcy case has been already dismissed, I don't think you would be able to overturn the case. You will have to refile the bankruptcy. Nevertheless, I would suggest you to have a word with your bankruptcy attorney in this regard.
Take care.
As the bankruptcy case has been already dismissed, I don't think you would be able to overturn the case. You will have to refile the bankruptcy. Nevertheless, I would suggest you to have a word with your bankruptcy attorney in this regard.
Take care.
There is a possiblity my BK might be dismissed because I was not informed that I would have to give the BK estate my 2009 tax refund. I have spent the tax refund so I can not give the money back. I tried contacting the attorney office that filed my BK and they are not helping me. They said I signed papers stating that $1,000 of my tax refund is exempt. I don't have a copy of the papers.
What do I do? Please help
What do I do? Please help