After A Bankruptcy Dismissal

: Chris Lee Law Firm

  Filed under: Bankruptcy

dismissalHaving your bankruptcy case dismissed is not the outcome most people seek when they enter the process. A dismissal can happen for several reasons, but the real trouble lies in what happens afterwards.  Unfortunately, most people are not prepared for a dismissal or what comes next.

Case Denied

A bankruptcy dismissal can result if you fail to pay fines, complete a step, follow through with a Chapter 13 plan or are suspected of fraud. While only the latter case can have legal consequences following the dismissal, there are other undesired effects of a dismissal.

First, you may be required to wait 180 days or more before being eligible to file again. This can cause further financial strain by way of penalties and delinquency standings.  However, if your case is dismissed by the court due to nonpayment of court fees or failure to complete one of the required steps you may be able to have the case reinstated as soon as those actions are complete.

Other issues that come up after a dismissal is what happens with creditors and the status of assets. While in bankruptcy protection, you are protected from credit collections and your assets are protected from creditors. Having your case dismissed lifts these protections putting you and your assets once again at risk. Further, secured debts may  become problematic in that any repossession or foreclosure proceedings could be initiated or resume at this time.

 


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