Friday, August 11, 2017

What It Means To Have Your Bankruptcy Case Dismissed

People file bankruptcy for one main purpose: to eliminate debt. Elimination of debt in bankruptcy is achieved when the Court enters a discharge order in your case. Debts that have been discharged in bankruptcy are no longer considered valid debts, and you are no longer required to repay discharged debts. But there are other possible outcomes to a bankruptcy case and it is important to know the difference between the possibilities.

If your bankruptcy case is dismissed rather than discharged, here is what it means:

         The debts you included in your bankruptcy are still due.
         The automatic stay, which protected you from being contacted by lenders when you filed your bankruptcy case ceases to exist. This means your creditors are now permitted to call you to collect, and are also allowed to file lawsuits against you for collection of debts.
         If you had a pending garnishment when you filed bankruptcy, the judgment creditor who held that garnishment can have it reissued. This means your wages are once again subject to be garnished for repayment of a debt that has been reduced to a judgment.
Courts dismiss bankruptcy cases for any number of reasons. Among the most common reasons is the failure to file a complete case. If you leave out certain pieces of data regarding your income and debts the Court has the power to dismiss your case. Cases are also dismissed for the failure to complete the required credit counseling. Everyone who files a bankruptcy case is required to complete a credit counseling course and provide a certificate of completion to the Court. The course has two parts, one to be taken prior to filing a case and one to be taken prior to entry of the discharge. If you do not file your certificate of pre-bankruptcy completion and file a case anyway, the Court will dismiss your bankruptcy. You also have to show up at the first meeting of creditors, the 341 meeting, in your case. If you do not, the Court can dismiss your case. Dismissal can be harsh, and it is our job to prepare you to avoid that outcome. We make sure all of your documents are complete and all pre-filing requirements are met before your case is submitted to the Court. If you are having a hard time paying all of your bills, let us help. Call today to determine if bankruptcy is the answer you need.

For help getting out of financial distress, contact us at We will help by coming up with solutions that work for you and have multiple locations to meet your needs for office visits.

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