When a consumer files for Chapter 7 or Chapter 13 bankruptcy, they are required to have a judge approve their motion to file. When you get your bankruptcy case dismissed, it means something has gone wrong and the court has decided to reject your case. It essentially means that the case has been “thrown out”.
How Does it Work?
There is no question that filing for bankruptcy is an intricate process with heavy regulation. Sadly, with so much standing behind bankruptcy, small errors are easy to make. Since bankruptcy is a great way to get a fresh start, many filers will lie about their current situation in order to receive a favorable ruling.
Some of the reasons your case was dismissed include:
- Failure to pay all fees associated with bankruptcy
- Acts of fraud against creditors and lenders
- Procedural violations
- Failure to appear in court
- Lack of documentation
- Lack of timeliness
After a Dismissal
Sadly, if your case is dismissed, every single minute and dollar spent in the process has been lost. This includes any lawyers fees as well. There will be no changes to your debt and you will be in the same financial situation you were before you filed.
If your case is dismissed by the court, the stay against creditors is removed. This means that creditors and lenders can still attempt to collect from you. The creditors can use repossession, wage garnishment, and lawsuits to force you to pay your debts.
You can file for bankruptcy again, depending on the type of dismissal you received. For instance, dismissal for fraud or abuse can mean that your case can never be filed for again. Although small accidental errors can be made, many consumers try to write-off fraud as an accidental mistake, which the court does not take lightly. After a waiting period of roughly 6 months, however, a new case can be filed.
Filing for bankruptcy is not an easy choice and will have a long-lasting impact. Be certain that the documentation and information you provided is accurate and complete. If you are buried under a mountain of debt and ready for a fresh start, CrediReady can help. Our nationwide network of trusted and experienced lawyers are prepared to give you a FREE bankruptcy consultation to help you. Take a moment to fill out our inquiry form today to speak with your FREE attorney.