What Happens When A Bankruptcy is Dismissed.

Bankruptcy dismissal is a bad outcome. The goal of bankruptcy is discharge, not dismissal. In this video I discuss the consequences of a dismissed chapter 7 bankruptcy or chapter 13 bankruptcy
Matt Berkus is a Colorado licensed bankruptcy and student loan relief attorney with 19 years of experience. I offer free phone consultations to residents of Colorado for the purpose of bankruptcy. Click on my websites for additional information and for the phone number to call and schedule.
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What happens if my bankruptcy is dismissed.
My bankruptcy was dismissed
Dismissed bankruptcy
Bankruptcy dismissal.

[@DeNyce-]

My case was dismissed because my Attorney didn’t show up for court and she didn’t notify me of the court date. She moved out of town when Covid hit. I didn’t have a choice to save my dismissal. I had fallen behind on payments because I lost my job due to Covid. She never notified the courts of my job loss. This has been a nightmare. I don’t know how to rebuild my credit. It has dropped tremendously because of this.

[@bankruptcybailout]

I am sorry to hear that happened. It sounds like you were in chapter 13 bankruptcy (with your reference to not making payments). If you weren't making your chapter 13 plan payments and lost your job, your case would end up dismissed anyway even had the court known about about your job loss. In fact, not having a job would be an additional reason to dismiss a chapter 13. The only thing you might have done at the time is convert the case to a chapter 7 assuming you would have been eligible to do so. Also, the court notices, motions, and notice of hearings get mailed to your address on file. As such, the courts don't usually take as an excuse "my attorney didn't tell me." You could have consulted with or hired a different attorney at that time. It sounds like you should consult with a local bankruptcy attorney to determine the best course of action to clean up your lingering debt.

[@DeNyce-]

@@bankruptcybailout thank you for your reply. I didn’t know I had the option of hiring another Attorney. So sounds like my case was headed for dismissal regardless. Yes, it was due to none payment. When I was laid off the second time due to Covid my unemployment took months to pay and by then it was too late. Thank you so much. I will just have to try and rebuild from here.

[@bankruptcybailout]

Right, that is the best course of action. You may need to still file bankruptcy. Since your case was dismissed, all the debt that was part of that case is till live (to some extent or another). In any event, best of luck at getting it sorted out. I am sure you will bounce back.

[@DeNyce-]

@@bankruptcybailout thank you so much for your time.

[@sofi4433]

Can I still buy a home if my case was voluntarily dismissed ? I filed bankruptcy (chapter 13 ) to save our home from getting foreclosed but I ended up selling it … my bankruptcy attorney advised me to get voluntary dismissal a plan was never even settled or anything , I made ALL of my payments on time but now the letter states I will be getting all of the money back . I really thought my attorney meant discharge not dismissal I just want to be able to buy another home .

[@bankruptcybailout]

That question is better directed to a mortgage broker. Look, bankruptcy doesn't prevent you from obtaining a mortgage indefinitely. You will likely have to wait at least two years from your bankruptcy. However, if your case was dismissed, then any of the debts, in that case, were not discharged. So, you will likely have to spend some time resolving your debt and cleaning up your credit before you can get a mortgage. How long that will take will depend on how messed up your financial situation was when you filed your case.

[@sofi4433]

@@bankruptcybailout thank you so much for making these videos your information is very helpful .

[@nko5666]

My bankruptcy experience have been horrible! My attorney told me oh it will be easy the Chapter 13 trustees are so nice. I wanted a Chapter 7, he like no they will make you sell your home. Anyway my 341 meeting was 6 mths ago and ive made every payment this far on time. Its been hell they sent 2 realtors to my home stating its appraised higher, ive gotten notices monthly from trustee, abt agreeing to provide a copy of my tax returns. Today i get a notice from my bankruptcy attorney asking abt a hearing and hiring a appraiser to testify abt the equity in my home. Or they can raise my payment amount like 4x s what im paying. I have an investor willing to pay me too dollar for my house. Should i do a voluntary dismissal of the case. Walk away with cash! Move out of state and refile under a Chapter 7. My question is would that be hard to do, because i really feel like my attorney took advantage as this was my 1st time in 50 yrs ... So uncertain whats best.

[@bankruptcybailout]

I can't really wade into that. All I can say is that if you filed the case a chapter 13, then you have the right to voluntarirly dismiss it. If you sell the house, there is still the issue of any cash you realize from the sale and trying to protect that in a subsequent chapter 7. That is something you need to discuss directly with a bankruptyc attorney in whatever state you decide to move (if that is what you end up doing).

[@jstreetz]

I filed a Chapter 13 nov. 2021. My car was repossessed July 2021..hence way after 10 day deadline...ok... Bankruptcy lawyers contacted lender who states he sold car oct 2021 when just Nov 2nd you had it for me to come get. Lender says he sold it to where I originally purchased it from. What do I do? Lawyer says do Conversion and switch to chapter 7? I'm too sick for all this mess...smh

[@acnj228]

What if you cant pay court fees when bankruptcy is dismissed

[@bankruptcybailout]

To which court fees are you referring?

[@CashiruloRecords]

What happens to the money you paid once is dismissed

[@bankruptcybailout]

You will need to be more specific with your question. What chapter of bankruptcy, what money, and to whom?

[@CashiruloRecords]

@@bankruptcybailout the monthly payments that you make every month . Did a bankruptcy to save a foreclosure

[@bankruptcybailout]

Okay, so you were in a chapter 13 bankruptcy. If your chapter 13 plan was confirmed (approved), then the trustee begins distributing your payments to creditors per the terms of the plan. If the case is dismissed after plan confirmation, any remaining funds are distributed to creditors. The debtor doesn't get the money back. If the chapter 13 bankruptcy is dismissed before the plan is confirmed (approved), you get the money back that you paid up to that point.

[@CashiruloRecords]

@@bankruptcybailout THANKS

[@dtrucker1572]

@@bankruptcybailoutabout how long does it take to get that money back ? Weeks ? Months ? It will come through the mail correct

[@eddie2128]

Hello my Bankcrupty 13 was dismissed in May 30,2019. I Filed June 9th 2015. I want to refinance my mortgage, but mortgage lender tells me I have to wait 4 years from dismissal date in order to refinance. My question is my BK 13 will be taking off my credit report after June 9,2022, (7) years from filed date. Can I refinance after that date? Thanks.

[@bankruptcybailout]

You should try talking to a mortgage broker and not your current servicer/bank. Bear in mind that a dismissed case is a failed bankruptcy. So, that isn't a good thing for your credit. It also means you didn't eliminate the debts that were part of the bankruptcy. So, if you haven't addressed those debts since the dismissal, they are an additional problem. However, as for the bankruptcy itself, I don't see why it would be a hindrance after it comes off your credit report. However, you should talk to an independent mortgage broker to get a better picture of your options.

[@eddie2128]

@@bankruptcybailout Thank you for your advice! I will do that.

[@taylorbrown5537]

Question? My bankruptcy was dismissed due to non payment I wasn’t working. It’s been about 2-3 years. I got it because an ex racked up $25k in tickets. I was going to go through the process of getting it deleted. I was wondering, if the bankruptcy is removed from my credit does that mean I still have 4-5 years to save and figure out what to do about that debt? Because I imagine it will pop back up and I do not want my license randomly suspended because of it. It was suspended at the time of the bankruptcy and I had to file it otherwise I would not be able to drive to look for work. I am in a position now to save and also have legal shield and will have them help in regards to removing some of the tickets so my balance is lower. I wanted to wait until I had several thousand saved up before involving them because it’s quiet now and I haven’t received any notices. I assume once the legal team contacts the city it was awaken the fact that the bankruptcy was dismissed and they will give me 30 days or however many to settle the debt. Please advise?

[@bankruptcybailout]

That is a bit to specific to provide any insight. You should probably direct that question to your Legal Shield attorney (assuming they even answer the phone) regarding the tickets. Also, it isn't clear what it is you are asking. Bear in mind, you cannot "delete" a bankruptcy, even a dismissed one, just because. Your credit report is allowed to report true and accurate information about you even if negative and FCRA allows bankruptcies to be reported for up to 10 years. In addition, there are other ways to determine if one filed bankruptcy beyond your credit report.