What happens if your bankruptcy case is dismissed

However, if your first bankruptcy case was dismissed , including a voluntary dismissal, you can generally file again for either Chapter 7 or Chapter 13 at any time. That is, unless the court says differently.

The day wait period to refile a dismissed bankruptcy case was put in place because of the power of the automatic stay and its ability to stop creditors in their tracks. Readers of this blog will recall that the automatic stay is an injunction issued by the bankruptcy court that prevents collection activity of any kind after a case has been filed.

Especially in the real estate context, repeatedly filing bankruptcy and then voluntarily dismissing the case can indefinitely frustrate lender foreclosure efforts. The Bankruptcy Code addresses this loophole by preventing a case from being refiled that has been dismissed after a creditor has moved to lift the automatic stay. Similarly, the automatic stay is limited to 30 days if a debtor files for Chapter 7 bankruptcy within one year of a previous case being dismissed.

Erik Clark is one of the leading bankruptcy attorneys in Southern California who has had the privilege of representing thousands of clients in chapter 7 and chapter 13 bankruptcy cases in the Los Angeles area. Sometimes conversion is automatically approved, and in other situations it is disallowed or requires a court hearing to approve a motion to convert. In some ways, conversion starts the bankruptcy case over because there are different rights and duties for the debtor and creditors.

In other ways, conversion continues activities that are already taking place. It is highly recommended to consult a bankruptcy attorney to discuss a debtor's right to convert to another chapter and the impact of conversion. See related FAQs below. I am a cosigner on a vehicle, and I am filing for Chapter 7. How do I put that when I am listing my debts? I just filed for Chapter 7 in Michigan and wondered about the upcoming tax While you are in a bankruptcy case, you are protected by the automatic stay.

Creditors are prohibited by the bankruptcy stay from taking any actions to collect a debt without court approval. Once a bankruptcy case is dismissed, the automatic stay is no longer in effect. That means creditors can take all collection action allowed by law. Collection activities may include collection letters, debt collection lawsuits , wage garnishments , repossessions , and foreclosures.

The only way to stop creditors from taking action to collect a debt after a dismissed Chapter 13 case is to pay the debt or re-file a new bankruptcy case. Whether you can file another Chapter 13 case immediately after a dismissed Chapter 13 depends on the reason why the Chapter 13 case was dismissed.

Whether conversion is an option depends on your situation. Of course, you want to make sure that you will not have any other problems when converting to a case under Chapter 7 to avoid a dismissed Chapter 13 case. Barring any problems, you might be able to file a Chapter 7 case to get rid of unsecured debts even though you have a dismissed Chapter 13 case. Because you are filing under Chapter 7, you might be able to file without an attorney since you will not need to file a Chapter 13 repayment plan.

Depending on your financial situation, you might pass the Means Test for a Chapter 7 case. In a typical no-asset Chapter 7 case , you can eliminate your debts within four to six months after filing your bankruptcy petition with the bankruptcy court. If you have questions or you are skeptical, watch video testimonials from our past users.

You can hear from actual individuals who used our services to file a Chapter 7 case without an attorney to receive the debt relief they need. Upsolve gives individuals who cannot afford to hire a bankruptcy attorney the assistance they need to get out of debt.

You can do this! This type of dismissal usually occurs because of a procedural mistake, such as a failure to file the correct forms, not as a result of unethical behavior. By contrast, a dismissal with prejudice will prevent you from filing another bankruptcy for a specific period, or forever prohibit you from discharging any of the debts existing at the time of your first filing. The court will dismiss a case with prejudice if you:.

After filing your case, you must comply with the bankruptcy rules and procedures. The court dismisses most matters because of the failure of debtors to:.

In bankruptcy, the automatic stay protects the filer from almost all creditor collection activities.

It stops them in their tracks. In most cases, the stay remains in place throughout the bankruptcy matter. However, if the court dismisses your case, your creditors can come after you to collect their debts once again.

Mostly, you're in the same position you were in before filing. Also, immediately filing another bankruptcy will limit your automatic stay in the new case.