What happens after your bankruptcy file is dismissed?
Sometimes your chapter 7 or 13 bankruptcy will be dismissed. When this happens, it is a good idea to consult your bankruptcy lawyer for legal help regarding your next options. In a chapter 7 bankruptcy, it is less likely that your case will get dismissed. In contrast, a chapter 13 bankruptcy can yield a much higher probability that your case will not be discharged. Often the dismissal is a result of defaulting on the payment schedule. Whatever your reason may be, debtors may wonder what the next step is in order to manage their financial hardships.
Debt after a dismissed bankruptcy
In general, your monetary situation will stay the same prior to filing for bankruptcy. When you do file, you may be granted an automatic stay that protects you against creditors and any possible foreclosure on your home. These collection attempts may also include repossessions, debts and any pending lawsuits. However, if you were going through a foreclosure at the time of the bankruptcy, then the mortgage company may have the legal authority to continue the process. This might also hold true to any finance companies that are aiming to repossess your vehicle.
How long does my bankruptcy file stay on my credit report?
The bankruptcy file may also stay on your credit report for up to 10 years. This is normally regardless of whether your file was dismissed or discharged. In most cases, you may be given the opportunity to file again after dismissal. Your bankruptcy attorney will help you assess the factors that may need to be met before filing bankruptcy again.
Are debts liquidated after bankruptcy?
What happens if your debts are not liquidated after you file for a chapter 7 bankruptcy? Sometimes after filing for a chapter 7 bankruptcy, your debts are still not liquidated. Why does this happen and what should you do?
There are certain types of debt in a bankruptcy that are considered non-dischargeable (meaning you will still be required to pay it after your bankruptcy is discharged) such as: student loans, domestic support obligations, drunk driving debts, certain tax debt, etc. This list is not exhaustive of all non-dischargeable debt; however, it gives you an example that there are certain types of debts that remain your obligation after a bankruptcy. I am not sure what type of debt was not discharged in your case based off of the information you provided. You may want to look up the type of debt that has remained your obligation after your bankruptcy and make sure that it is dischargeable. If it is debt that was discharged and the lender is attempting to collect after you have received your discharge order, the lender may be in violation of your discharge order and possibly subject to financial sanctions. I hope you found this answer useful.
This answer pertains to individuals in the state of Florida.
Katie M. Stone
Location: Orlando, Florida
Phone: (407) 217-5807