Having Your Chapter 13 Bankruptcy Case Dismissed
Interviewer: What happens if a case gets dismissed, what happens to the person?
Adam: If you are currently in a Chapter 13 bankruptcy filing, you are eligible to re-file for a Chapter 7. You will have to wait a specified period of time before you are allowed to re-file.
You Can File a Chapter 7 Bankruptcy More than Once
There is an actual waiting period of 7 years in place for a person that had filed a previous Chapter 7, had been granted relief and everything had gone according to plan, for them to re-file for a Chapter 7. I have worked with clients that have filed for bankruptcy repetitively. Every 8 years they’re filing a Chapter 7 bankruptcy.
If a Previous Chapter 7 Bankruptcy Case Is Dismissed, do You Have to Wait 7 Years to Re-file?
Interviewer: For example, let’s say you file a Chapter 7, something went wrong and the case was dismissed. Could you file a Chapter 7 before 7 years have elapsed?
Adam: You can file it in less than 7 years, but it’s going to depend on the grounds on the dismissal. In that particular instance, there are going to be many factors involved to say exactly what that time frame would be.
If Your Chapter 7 Bankruptcy Case Is Dismissed, Will Your Creditors Resume Collection Activity?
Interviewer: What happens with your creditors if your case ends up in a dismissal? Will they all resume collection activity?
The Majority of Creditors Will Not Be Notified That a Potential Bankruptcy Case Was Dismissed
Adam: For most of the creditors to resume activity, it will depend on how close they pay attention to the proceedings. Sometimes, they may not notice that the debtor’s Chapter 7 bankruptcy was dismissed and it may take years for them to realize that they still have a legitimate claim. They may attempt to go back after the individual.
Overall, you’d be surprised how little some creditors pay attention. Once they see the preliminary Chapter 7 paperwork, they pretty much cease collection activity.
By Adam Hunt