What is a Bankruptcy Dismissal?

: Reese Baker & Associates

  Filed under: Filing bankruptcy

dismissalWhen you are going through a bankruptcy process there are many different terms that you are going to hear and have to understand as they apply to your particular bankruptcy case. One term that you do not want to have to deal with is what is called a bankruptcy dismissal.

This means that your bankruptcy has not been concluded in your favor. It is more common in a Chapter 13 bankruptcy rather than a Chapter 7. There are several reasons that your bankruptcy can be dismissed. One that often arises in a Chapter 13 is that an individual’s situation has changed and they are not able to keep up with the payments that have been agreed upon in that type of bankruptcy.

Then there are certain things that must be done throughout your bankruptcy such as the credit counseling and financial management courses and if these are not taken or are not taken through the proper channels, this can be grounds for a bankruptcy dismissal as well. Another reason is if your bankruptcy was not filed correctly. Then there are some cases where there have been grounds to suspect the fraud is being created through the bankruptcy and again this will be grounds for dismissal.

Filing for bankruptcy can be difficult and it can be a little confusing. It is wise to obtain the services of a Houston bankruptcy attorney to assist you from the very start of your bankruptcy right through to its completion. If during your bankruptcy procedure you have applied for an automatic stay against some of your creditors as soon as your dismissal comes into effect this automatic stay will be lifted and you will be back in the same financial difficulty that you were in when you started with your bankruptcy action.