Is Bankruptcy Protection Guaranteed?

The vast majority of people in society today believe that if you initiate bankruptcy protection proceedings then you are fully entitled to that protection. That is not however, always the case. There is a chance that the Court hearing your petition for bankruptcy will refuse to grant the protection that is sought and can do so for a wide variety of reasons.

This is called a “dismissal” and the courts may rule for one in the event that the protection was sought out in bad faith or is considered an abuse of the process of bankruptcy protection or even if it feels that the outcome will not be in the best interests of the petitioner even though they may be inclined to believe that it is.

In the event the court rules for a dismissal, the proceedings end there and the petitioner is once again left without the protection from creditors that were in place during the petition from the automatic stay that accompanies it. This fully allows the creditors to once again pursue the debts with all of the vigor that they can muster.

You must be aware that this a distinct possibility when filing for bankruptcy protection and to be sure that your reasons for filing in the first place were just and appropriate. The best way to accomplish this is to contact a fully qualified Dallas bankruptcy attorney or trustee to see where you stand and get the advice you need to move forward.