When you file bankruptcy, the court issues specific rules, and if you don’t follow those guidelines, or abuse the bankruptcy process in generally, the bankruptcy court may dismiss your case with prejudice. Taking a step back, when your bankruptcy case is dismissed, the court stops your bankruptcy proceedings without discharging your debts, which essentially ends your bankruptcy. When your case is dismissed it is either designated dismissed without prejudice, meaning that you can file again without delay, or dismissed with prejudice, meaning that you’ll be prohibited from filing another bankruptcy for a specific period of time.
Having your bankruptcy dismissed with prejudice means that the bankruptcy court or the bankruptcy trustee has reason to believe that you have committed bankruptcy fraud by hiding assets or being untruthful on your bankruptcy papers, having filed numerous bankruptcy cases to purposely delay your creditors, or willfully disobeyed the court’s orders. In addition to the refiling restriction, having your bankruptcy dismissed with prejudice could also mean that the in the next bankruptcy you file, you won’t be able to discharged some of the debts from your previous bankruptcy case.
The primary reason for having prejudice in the bankruptcy code is to prevent bankruptcy abuse and fraud. As long as you are completely transparent in your bankruptcy filings, obey the court’s orders, and don’t try to hide assets, you can completely steer clear of having your bankruptcy case dismissed with prejudice. In most events, your bankruptcy case will be dismissed if you miss filling out a form or fail to adhere to a deadline. Having an experienced bankruptcy attorney will help you ensure all forms are filled out properly before submitting and that you understand the court’s orders.
Contacting your Dallas bankruptcy lawyer today will help you avoid dismissals and ensure that your debts are properly discharged under the U.S. bankruptcy law.