What will happen if BK is thrown out

[Cindy]

We have been in BK a yr and 1/2 (Cp 13) what will happen if they throw it out?? Will the Creditors come after us, or drop it, I need to know ASASP, as our BK may , NO will be dropped by the 19th if we don't have the money, which we don't :-(


Thank you so much

[HHM]

If your BK is thrown out (the technical term is "dismissed") then you are fair game to all your creditors. If you are in a chapter 13 to protect some assets, for example, if you were behind on your mortgage payments and the amount you have paid into the Chapter 13 plan to date has not made up your payment arrears, then the mortgage company can foreclose.

Also too, if you let a BK get involuntarily dismissed, you may not be able to refile for at least 6 months (and possibly longer depending on the grounds for dismissal), and you "may" not be able to EVER receive a discharge of the debts that are in this BK (again, depending on the grounds for dismissal)

Don't let this happen, be proactive about it. If there is already a motion to dismiss that is coming up for hearing on the 19th, you have probably let this gone too far and may not be able to bring it back. If you can't afford your plan, you can/could always amend you plan and reduce your payment (assuming there was room in your plan to do so).

Get in touch with your attorney, or any BK attorney and see what your options are.

[GoingDown]

If your BK is thrown out (the technical term is "dismissed") then you are fair game to all your creditors. If you are in a chapter 13 to protect some assets, for example, if you were behind on your mortgage payments and the amount you have paid into the Chapter 13 plan to date has not made up your payment arrears, then the mortgage company can foreclose.

Also too, if you let a BK get involuntarily dismissed, you may not be able to refile for at least 6 months (and possibly longer depending on the grounds for dismissal), and you "may" not be able to EVER receive a discharge of the debts that are in this BK (again, depending on the grounds for dismissal)

Don't let this happen, be proactive about it. If there is already a motion to dismiss that is coming up for hearing on the 19th, you have probably let this gone too far and may not be able to bring it back. If you can't afford your plan, you can/could always amend you plan and reduce your payment (assuming there was room in your plan to do so).

Get in touch with your attorney, or any BK attorney and see what your options are.

What sorts of things would make those debts unable to ever be discharged?

[HHM]

What sorts of things would make those debts unable to ever be discharged?

Dismissal is not the worst outcome, however, it will mean you cannot refile for BK for at least 6 months. However, if you are "denied a discharge" then you are screwed.

Note, having your case dismissed and being denied a discharge are two different things. A dismissal closes your case (granted, you are not granted a discharge, but you are not "denied" discharge"). A "denial of discharge" means your case actually stays open indefinitely, and you are never granted a discharge, meaning any debt that was included in that bankruptcy can NEVER be discharge. Generally, a denial of discharge is reserved for the worst kinds of abuse...generally, the US Trustee would have to demonstrate willful abuse of the BK system in order to get a denial of discharge, as such they are rare. Willful abuse can be things like serial BK filers, hiding of substantial assets, and malicious fraud committed on creditors.

[Cindy]

Our case was "Dismissed" not Dneied a Discharge, so now we arejust going to stand up and try our Best to make pmts to IRS, we make house and car payments no problem, the IRS will have to be contacted as soon as we know they have Dismissal in hand, and go from there, to be quite homest this has given us breathin room again, I know sounds strange, but this BK has put up a wall everywhere we went , Loans (definetly out) and will be I am sure for quite some time, but we can find someone out there that will work wiht us where when in BK no one would touch us with a 10 Ft pole.

Hard work ahead , but it can be done!!!!

[CindyLou]

can you convert to chapter 7??

[Cindy]

Well converting ,,,I really don;t know, we make too much I think I was told to even file a 7 in the beginning.

[CindyLou]

well, if you filed over a year ago, then there was not any limit on how much you can make and still file chapter 7. so the old laws will still apply to you and you should be able to convert. Its worth checking in to!!!! By the way, did you move to louisiana or los angeles??

[Cindy]

Hi Cindy,

Well thats a possibilitie (Ch 7 that is) worth checking into...:-) As for moving Nope, we live in Texas...