Reasons a Bankruptcy Case Would Be Dismissed
With more than 6,000 bankruptcy filings every day, the courts don’t have any time to waste when dealing with a bankruptcy case. It makes sense, then, that they would have a low tolerance if someone doesn’t follow the rules. Courts do not hesitate to dismiss cases when someone is dishonest or does not cooperate fully.
If the court dismisses your bankruptcy case, you do not receive a discharge. You will also be penalized by the federal bankruptcy code. If you dismiss your case voluntarily during a creditor’s motion to lift stay, or if your case is dismissed due to failure to abide by the orders of the court, you will be prohibited from filing for 180 days after dismissal.
Even if you’re not prohibited from filing, other restrictions may apply. If you re-file within one year of dismissal, your automatic stay (the time during which creditors can no longer attempt to collect from you) will only last for 30 days. You and your attorney must ask for an extension within 30 days of the new filing, or creditors can resume collection.
Bankruptcy cases can be dismissed for any number of reasons:
- A debtor may experience a change in circumstances that makes bankruptcy a bad idea
- A debtor may provide false information to the court or trustee
- A debtor may fail to provide information to the court or trustee
- A debtor may fail to attend credit counseling
- A debtor may fail to make Chapter 13 payments
If you find yourself in a financially difficult situation due to debt, you have options. For an in depth look at your situation you should contact a full service debt relief law firm like Harold Shepley & Associates. We can answer any questions you may have about debt relief and bankruptcy. Contact us today at 1-866-284-7062 or visit us at www.shepleylaw.com to find out more information on your debt relief options.