People experiencing financial hardships are caught between a rock and a hard place. When creditors are calling or sending threatening letters, a debtor may have little recourse to protect themselves.
Filing for bankruptcy provides protection against creditors while working towards debt resolution. An automatic stay is an order issued to cease all collection efforts when a debtor enters bankruptcy. However, when a bankruptcy case is dismissed, the debtor is again subject to the collection efforts of creditors.
A bankruptcy case may be dismissed for a number of reasons. The court may dismiss a case if the information provided was inaccurate, incomplete or the debtor failed to complete the necessary steps in the filing process. A case may also be dismissed if the court feels any acts of fraud were committed. In most cases, there are ways to deal with creditors after a dismissal.
Plan Of Action
The most important thing is to contact your bankruptcy attorney. If you did not have a bankruptcy attorney, you should consult with one in order to review your options. Many times, an experienced bankruptcy attorney can help you get your case reinstated with the court. If your case was dismissed due to lack of paperwork or the completion of filing requirements, they can help you get the work done to expedite the process of reinstatement. Your attorney can also discuss additional ways to reduce your debt, such as filing for Chapter 13 bankruptcy during reinstatement rather than Chapter 7.
Review the list of creditors that was included in your bankruptcy filing before it was dismissed. Once the case is dismissed, your creditors will receive notice and collection efforts may begin right away. As a borrower, you have the right to contact your creditors to request payment options. In many cases, creditors are willing to negotiate repayment terms and you can obtain a plan that suits your budget. It is important that you demonstrate intent for full repayment in order to get the best deal in a credit card negotiation.