Chapter 13 Dismissal: Can I File Bankruptcy Again?

September 6

Realizing the need to file for bankruptcy falls hard on any debtor. Filing for a bankruptcy plan is a complex matter, as there are many court orders to be followed and a lot of paperwork to be delivered, while a debtor must miss no detail in the process. It can get quite stressful, and even more so if the petitioner chooses to go through the filing process without the professional assistance of bankruptcy lawyers Escondido CA.

In case of bankruptcy case dismissal, things get complicated again, and the debtor is back to square one. At this point, it is crucial that the right call is made: the debtor must check whether they remain eligible to file and book a bankruptcy lawyer free consult as soon as possible. Armed with patience, professional assistance and the required paperwork, it’s time for another attempt.

Filing for Chapter 13

There are two possible outcomes after filing for Chapter 13 bankruptcy. Discharge, the desired outcome, is the scenario in which the bankruptcy was approved by the court, and the debtor is allowed to start their 3-5 year plan of repaying their debts in monthly installments. The other possibility, dismissal, represents a situation in which the debtor’s filing for bankruptcy was rejected, for one or more legal reasons.

What can lead to Chapter 13 dismissal

There are several reasons that can cause the case dismissal when filing for Chapter 13 bankruptcy:

  1. Not filing all of the required documents and forms;

  2. Missing to pay all of the case-related court fees;

  3.  Not completing the credit counseling course and/or the debt management course, proofs of which must be submitted to the court;

  4. Failing the means test;

  5.  Not attending the mandatory meeting of creditors, or lying under the oath while being questioned at this meeting;

  6. Committing bankruptcy fraud;

  7. Missing to pay all Chapter 13 related monthly installments.

As can be seen on the list, some of the reasons for Chapter 13 dismissal are the examples of debtor’s failing to understand certain court orders or obtain all the required paperwork. To avoid your case being dismissed on such grounds, make sure to attend a bankruptcy lawyer free consult, to get the much needed help to run your case successfully.

Refiling for Chapter 13 after dismissal without prejudice

A good example of a Chapter 13 dismissal without prejudice is a case where the debtor missed to submit some of the necessary paperwork. If the court dismisses filing for Chapter 13 without prejudice, it means that the debtor may refile for the same plan immediately. The duration of the automatic stay period can be up to 30 days, depending on the debtor’s bankruptcy filing history. If they had two or more bankruptcy cases dismissed within previous 12 months, the automatic stay period will not be granted.

Refiling for Chapter 13 after dismissal with prejudice

When a Chapter 13 case is dismissed with prejudice, the petitioner is either held back from refiling for a certain period of time, or is permanently prohibited from doing so. The cause for this type of case dismissal is some form of abuse of the bankruptcy system committed by the debtor. The bankruptcy judges determine the penalty, based on how serious the acts that led to the case dismissal are.

Visit Chang&Diamond, APC, Escondido for a bankruptcy lawyer free consult

Chapter 13 dismissal doesn’t have to mean the end of your bankruptcy case, but it should be taken seriously. It calls for professional aid to refile in a way that will assure the Chapter 13 discharge in the next filing round. Don’t risk your case again, trying to go through this process alone. Schedule your bankruptcy lawyer free consult with Chang&Diamond, APC, today.