Anyone filing for bankruptcy is looking for one outcome, a debt discharge. However, the bankruptcy process is guided by some strict guidelines, and failure to follow these rules could lead to a case being dismissed. Here is what you need to know about a dismissal:
Reasons For A Dismissal
There are two types of bankruptcy dismissals, voluntary and involuntary. A voluntary dismissal occurs when the debtor requests for the court to close their case. This may be done because you were able to resolve your debts with a creditor directly, have a change in income that allows you to better repay your debts, or because the bulk of your debt burden is ineligible for bankruptcy. An involuntary dismissal occurs when the court terminates a bankruptcy filing. This is generally due to failure to pay the necessary fees, complete the credit counseling requirements, or due to suspicions of fraud.
Options After A Dismissal
If your case was dismissed due to a voluntary request to have the case closed, you could re-file your case with minimal consideration. One way is by having your Dayton bankruptcy lawyer file a motion to reinstate your case with the court. Dismissals related to credit counseling or court fee payments can usually be reinstated as soon as these requirements are completed. Another option is to submit yourself to the means test and re-file the petition. In some instances, you may be required to wait up to 180 days before becoming eligible to re-file your case. However, the waiting period is more likely to be applied to those with an involuntary dismissal due to failure to obey court appearance orders.