When seeking bankruptcy protection there are two potential outcomes you should know about. You may have your case discharged, in which you would be resolved of your debt liability. Having your debts discharged through a Chapter 7 bankruptcy eliminates your debts and requires your creditor to erase your debt balance. Your account standing will no longer be considered delinquent and your account will reflect the debt elimination. In a Chapter 13 bankruptcy, the discharge results from the successful completion of a Chapter 13 repayment plan. After you have satisfied your debts to the creditors through the repayment plan, your bankruptcy discharge will require creditors to reflect these changes in your account.
In some cases, you may not obtain a debt discharge and, instead, have your case dismissed. If your case is dismissed, you would still be held liable for your debts and no resolution was ordered. A dismissal can result from failing to complete the filing requirements, or if an action is deemed fraudulent by the court. In either case, having your case dismissed can be problematic. However, there is something you can do to proceed if your case is dismissed.
If your case was dismissed because you did not complete the filing requirements, you may able to complete the steps and re-file the case immediately. In many cases, you may be able to re-file quickly if you did not make your payments or failed to include all of the necessary paperwork. Bankruptcy laws require everyone filing for bankruptcy to complete a debtor education course; failing to complete this course by the deadline may result in a dismissal. Generally, you have 10 days from notification of dismissal to file a Motion to Reinstate the case.
Since the bankruptcy process requires many time-sensitive steps to be taken, it is always best to hire a bankruptcy attorney to manage your case. Your attorney can make sure you have all of the necessary documents, make your payments and ensure you complete the process successfully.