Refiling for Bankruptcy After Court Dismissal
A debtor's ability to refile Chapter 13 bankruptcy after a dismissal will depend on various factors. The first thing a debtor needs to do is find out why their Chapter 13 bankruptcy case was dismissed.
The most common reasons for dismissing a Chapter 13 bankruptcy case are:
- The debtor failed to appear in court or failed to obey bankruptcy court orders. This could be as simple as failing to deliver certain documents to the Chapter 13 bankruptcy trustee or as serious as failing to disclose certain assets during your bankruptcy.
- The debtor failed to make payments to the bankruptcy trustee. Since Chapter 13 bankruptcy lasts from 3 to 5 years, it is likely that a debtor may experience some challenges during their bankruptcy repayment period. However, the mistake that many make is just simply not paying the bankruptcy trustee instead of informing the bankruptcy court of challenges and working out a solution.
- Failure to make payments on secured property such as a mortgage or a car note. Even if debtors are paying the secured creditors directly during the Chapter 13 bankruptcy case, failing to pay these secured creditors can result in a bankruptcy dismissal.
If a debtor failed to obey court orders, then they could be looking at a ban from filing bankruptcy for up to 180 days. Also depending on the circumstances of the bankruptcy dismissal, the debtor could have limited automatic stay protections when they refile the Chapter 13 bankruptcy case. For all of these reasons, a debtor is better off working with their bankruptcy attorney when deciding to refile a Chapter 13 bankruptcy case after a dismissal.
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