When you file for bankruptcy, it’s important to understand that this is an incredibly complicated process in which you’ll need to follow a considerable number of rules, laws, and regulations. Unfortunately, there are instances in which your case can be dismissed. As such, understanding what happens when you receive a bankruptcy dismissal and the impact it can have is critical. The following blog explores what you should know about these matters and the importance of discussing your matters with an Orange County consumer bankruptcy lawyer to assist you through these complicated times.
What Does It Mean to Receive a Bankruptcy Dismissal?
When your bankruptcy case is dismissed, it means that the court is no longer hearing your case. They will stop all proceedings and will not enter a discharge order. As such, your case will stop without receiving any further debt relief. You will be liable for continuing to pay the remaining debt in your case. Additionally, the automatic stay will be lifted, meaning creditors can resume collection efforts, including lawsuits and foreclosures, against you for the remaining debts.
There are several reasons the court may dismiss your case. Violations of the bankruptcy code and additional requirements can result in a dismissal. For example, if you don’t complete the paperwork fully or correctly, do not complete the required credit counseling courses, or fail to make Chapter 13 payments, your case can be dismissed.
In some instances, you may choose to dismiss your case voluntarily, which can be beneficial. You’ll find that if you lose your job and income, you may no longer be able to make payments. As such, voluntarily dismissing your case and filing again at a later date may be in your best interest.
Is This Different Than a Discharge?
It’s imperative to understand that receiving a bankruptcy dismissal is considerably different than a bankruptcy discharge. When you receive a discharge, it occurs at the end of your case when the remaining eligible debts are eliminated or discharged. This means you are no longer legally obligated to continue paying these creditors as you are no longer liable for the debt.
You should also note that a dismissal is incredibly different than a conversion. In some cases, you’ll need to change your Chapter 13 filing to a Chapter 7 case. This often occurs when you are no longer able to afford your Chapter 13 payment. You must be eligible to file for Chapter 7 if this is the case.
However, when a bankruptcy case is dismissed, you will remain personally liable for the remaining debts, as the court will dismiss the case without further relief.
As you can see, making errors in your bankruptcy case can have a considerable impact on the outcome of your filing. That’s why it’s in your best interest to connect with an experienced bankruptcy attorney from the Law Offices of Michael D. Pinsky, P.C. Our firm understands that being in debt can be incredibly overwhelming, which is why we can help you navigate your options to make the most of filing. Contact our team today to discuss your circumstances with a member of our firm.
