Filing for bankruptcy is often a great way to reset your financial life and stop harassment from creditors. However, many people are surprised to learn that not every bankruptcy ends in debt relief. Sometimes a case is dismissed, meaning that the court closes your case without eliminating your debts. Understanding what bankruptcy dismissal means, why it happens, and what your options are can help you avoid any major setbacks. For more information, reach out to an experienced Bergen County bankruptcy lawyer today.
What is Bankruptcy Dismissal?
A bankruptcy dismissal occurs when the court closes your case without granting a discharge, meaning your debts are not wiped out. Once your case is dismissed, you are no longer protected by the automatic stay, creditors can resume collection actions, and you essentially return to your pre-bankruptcy financial situation. You still owe your debts, as the bankruptcy process was not completed.
Why Would a Bankruptcy Case Be Dismissed?
Your bankruptcy case could be dismissed for a number of reasons. Some common examples of issues that could result in a dismissal include the following.
- Failure to file required documents
- Missed deadlines
- Failing to complete credit counseling or debtor education courses
- Failing to make Chapter 13 payments
- Filing in bad faith or misrepresenting information
- Ineligibility due to means test failure
- Filing incorrect forms or using improper exemptions
- Failing to attend the meeting of creditors
These are some of the main reasons why the bankruptcy court could dismiss your case. Many dismissals are avoidable with proper legal guidance.
Can I Refile?
It is possible to refile for bankruptcy after your case has been dismissed. In many instances, you can refile right away. However, there are some exceptions. The specific rules and waiting periods you must abide by will vary depending on several factors, including the reason for the dismissal, the type of bankruptcy you are filing, and how many times you have filed before.
For a dismissal without prejudice, you can typically refile immediately. These are dismissals resulting from administrative errors, like incorrect paperwork or failure to attend the creditor’s meeting. However, a dismissal with prejudice has different rules. Dismissals with prejudice are often issued when the debtor acted fraudulently, abused the system, or deliberately disobeyed a court order. Dismissals with prejudice usually include a waiting period, often of 180 days, and could even permanently bar you from discharging the same debts again.
Can a Bankruptcy Attorney Help Me Avoid Dismissal?
Yes, hiring a skilled attorney can help you avoid bankruptcy dismissal. Your lawyer can help you prepare and file complete and accurate forms, ensure deadlines and education requirements are met, represent you at hearings and meetings, fix filing issues, and protect your assets. It is highly recommended that you work with a legal professional when filing for bankruptcy.
Reach out to a skilled attorney at the Law Office of Boyd & Squitieri today.