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?
See previous sent
You can ask your bankruptcy attorney to give you the copy of document which states that your tax refund is exempt. If you get the copy of document, then you can check out with the trustee whether or not your bankruptcy will be dismissed.
i filed bk and i stayed with all the payments, until i got bad sick and ill, and i was put in the hospital, and when i was in the hospital they dismissed the case, and they are ready to take my HOUSE, within the next couple of weeks is there anything i can do, im new with bk and i dont know alot of good lawyers in Arkansas, but if anyone has any info i need help fast.
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Hi HollieCC,
You will have to refile bankruptcy if you want to stop the foreclosure. You must have taken the help of an attorney in order to file your bankruptcy. I would suggest you to have a word with him and refile it.
Take care.
You will have to refile bankruptcy if you want to stop the foreclosure. You must have taken the help of an attorney in order to file your bankruptcy. I would suggest you to have a word with him and refile it.
Take care.
what happens when your bankrucy is dismissed do you get the money you paid to the trustee back and if your morgage was never included with the bankrupcy does anything happen with that
I don't think you would be able to get back the money you paid to the trustee after your bankruptcy has been dismissed. You can refile the bankruptcy once it is dismissed. Once the bankruptcy is dismissed, the creditors have the rights to sue you for their debts.
Question: At my attorney 's suggestion I applied for personal bankruptcy
in Maryland over 7 years ago. Within a few weeks withdrew petition. It is still showing up on credit reports. What can I do? Bankruptcy was not inacted or dismissed it was withdrawn.
in Maryland over 7 years ago. Within a few weeks withdrew petition. It is still showing up on credit reports. What can I do? Bankruptcy was not inacted or dismissed it was withdrawn.
Hi LSMFT,
As 7 years have passed, the withdrawn bankruptcy should have been removed from your credit report. I would suggest you to contact the credit bureaus and get it removed from your credit report.
Take care.
As 7 years have passed, the withdrawn bankruptcy should have been removed from your credit report. I would suggest you to contact the credit bureaus and get it removed from your credit report.
Take care.
Hi, I filed bankruptcy in NOvember 07. Due to a bunch of medical bills from 2 hospitalizations that year and I didn't have insurance. I had threats of liens on my home and so forth. I missed 3 mortgage payments tried to catch up but mortgage company refused to accept any further payments. I filed bankruptyc for the medical bills and pending foreclosure of missed payments on mortgage. However, I sold the home a year later, while still in the bankruptcy. Since the house was no longer an issue and bankruptcy no longer needed I asked to have it dismissed in Feb 09. and I set up payments with the remaining creditorss after the year of bankrupcty. now I amtrying to get a mortgage. Most of the creditors are paid off now and some I owe a little bit to but making regular monthly payments. I was told by a lender that I have to wait 4 years after a "dismissed" bankruptcy to be able to apply for a mortgage. Is that true.
Hi,
I've given my suggestions in regards to your query at:
http://www.mortgagefit.com/bankruptcy/dismissedch13-getloan.html#156936
Take a look at it. I hope it will help you.
Thanks
I've given my suggestions in regards to your query at:
http://www.mortgagefit.com/bankruptcy/dismissedch13-getloan.html#156936
Take a look at it. I hope it will help you.
Thanks
My chapter 13 was dismiss for failure to pay, i fell into very hard times. Can i refile my bankruptcy under chapter 7?
You will be able to file Chapter 7. You need to speak to a bankruptcy attorney in this regard and take the right steps to refile it.
Currently in Chapter 13 2 years deep, previous chapter 7 filed march 2002, I am wondering if i can have my chapter 13 dismissed and then refile and get a discharge under chapter 7 is there a waiting period?
welcome tiffany,
you will be able to get your chapter 13 bankruptcy filing dismissed if you do not follow the required rules and guidelines. however, rather than dismissing your case, you can contact your bankruptcy attorney and convert chapter 13 into chapter 7.
you will be able to get your chapter 13 bankruptcy filing dismissed if you do not follow the required rules and guidelines. however, rather than dismissing your case, you can contact your bankruptcy attorney and convert chapter 13 into chapter 7.
my bankruptcy was dismiss last year because we had file already and our years wasn't up to refile. can you tell me how can I get this off my credit report asap