Should You Re-File Your Dismissed Chapter 13 Bankruptcy Case?
Chapter 13 bankruptcy can provide debtors with an effective opportunity for managing overwhelming amounts of debt. Through a Chapter 13 filing, debtors enter into a 3-5 year repayment plan during which monthly payments are made to a trustee who then disburses the funds to your creditors. Typically, people will only need to file for bankruptcy once, however, if their case is dismissed by the court, there is the option to re-file, although the process will likely be more complicated.
Reasons For Chapter 13 Bankruptcy Case Dismissal
Bankruptcy cases can be dismissed for a number of reasons, however the main cause is from debtors failing to meet the obligations of their Chapter 13 bankruptcy repayment plan.
Some of the most common reasons for a dismissed Chapter 13 bankruptcy case include:
- Filing incorrectly or failing to submit required paperwork
- Missed filing deadlines
- Failing to attend required creditor meetings
- Failing to understand obligations of the filed plan
- Missed payments from job loss, salary change, or unexpected financial obligations or emergencies
- Failing to complete mandatory credit counseling courses
What Happens If Your Case Is Dismissed?
In the case of an unexpected situation such as illness, home repair, vehicle repair, or other family emergencies, the trustee assigned to your case may be willing to work with you while you work to get caught up on payments. You will need file a motion to either suspend payments for a period of time or to reduce monthly amounts.
Even if you file the motion, it is not guaranteed that the motion will be passed and you will still be responsible to make payments and fulfill other requirements. If you fail to meet the terms of your repayment plan, the court will dismiss your case. Dismissal of your case does not mean that debt is eliminated, it means that your bankruptcy will no longer be in effect and you will be responsible for paying the full amount of your debts and creditors will once again be allowed to take collective action.
Can I Re-File For Chapter 13 After A Dismissed Case?
If your Chapter 13 bankruptcy case was dismissed, you should be able to re-file a new case, however the process will likely be more complicated.
When you file for bankruptcy, an automatic stay is put into affect that prevents creditors from taking collective or harassing actions against you as you complete the terms of your case. However, when a case is re-filed, bankruptcy laws only allow for a 30-day automatic stay. If you were to re-file a third time or more, the automatic stay is not put into place at all.
Deciding if you should re-file can be as difficult of a decision as deciding to file in the first place. The best way to make the determination of whether or not to re-file is to speak to an experienced bankruptcy attorney. Your attorney can go over in detail the reality of your situation, the possibilities of a positive outcome, and the risks you may face. Re-filing a Chapter 13 bankruptcy case successfully requires detailed knowledge of bankruptcy law and the bankruptcy process. Your attorney can provide you with most honest and realistic information to help you determine if the benefits outweigh the risks and help you through the process as efficiently as possible.
For expert bankruptcy filing from respected bankruptcy attorneys in Las Vegas, contact Fair Fee Legal Services today. Whether you’re filing for the first time or considering the possibility of re-filing, Fair Fee has the knowledge and experience needed to help you through all aspects of the Nevada bankruptcy process.