If you have received a notice stipulating that your bankruptcy case has been dismissed, you might be wondering what exactly this means. This blog will explore the consequences of a dismissed bankruptcy in Wyoming, distinguish between voluntary and involuntary dismissals, ascertain the feasibility of refiling a Chapter 7 or 13 bankruptcy, and discuss the importance of connecting with our skilled Gillette Bankruptcy Lawyers.
What is the Difference Between a Bankruptcy Dismissal and Discharge?
When a bankruptcy case is filed in Wyoming, the primary goal is often to eliminate or “discharge” unmanageable debt. Generally, if the case proceeds smoothly, a discharge is granted at its conclusion, preventing creditors from collecting eligible debts. A Chapter 7 bankruptcy usually takes around four months, while a Chapter 13 case can span three to five years.
However, you have the option to voluntarily request the court to close or “dismiss” your case early if you decide not to proceed, thereby foregoing a discharge. Conversely, if you fail to meet the case requirements or engage in misconduct, the court may involuntarily dismiss your case, also without granting a discharge.
The primary difference between a bankruptcy dismissal and a discharge is the outcome for the debtor. A dismissal will terminate the case, leaving the debtor responsible for their outstanding debts. A discharge, on the other hand, is a successful completion of the case that legally erases certain debts.
When Can You Face an Involuntary Dismissal?
To qualify for a debt discharge in bankruptcy, strict adherence to various rules is essential. Failure to comply, including maintaining honesty and cooperation with the appointed bankruptcy trustee, could lead to your case being dismissed before a discharge is granted. Here are some actions that, if not completed, could lead to a motion to dismiss from the bankruptcy trustee or a creditor:
- Timely submission of bankruptcy schedules and other required forms
- Complete credit counseling before filing
- Attending the 341 Meeting of Creditors
- Filing a certificate confirming the completion of credit or debt counseling
- Providing Section 521 documents
- Successfully passing the means test
- Making all Chapter 13 payments as scheduled
- Staying current on child support or alimony obligations throughout the case
- Submitting complete and accurate information in all bankruptcy paperwork
Engaging an experienced bankruptcy attorney can help ensure that all documentation is correct and that strict deadlines are met. They can assist you in opposing a trustee’s motion to dismiss by submitting overdue documents, fixing mistakes in your paperwork, or fulfilling any outstanding requirements.
Can I File for Bankruptcy After a Dismissal?
In the unfortunate event that your bankruptcy case is involuntarily dismissed, you may consider refiling shortly afterward. In most cases, this should not be an issue if the dismissal is without prejudice, meaning there is no restriction on how soon you can file a new case.
However, if the court determines that the reason for the dismissal is particularly serious or that you have abused the bankruptcy system, it may dismiss the case with prejudice. In this situation, you will be prohibited from filing a new case for a specified period outlined in the order, which usually ranges from 90 days to one year. In some cases, the time limit could be for any length of time, including a permanent injunction that prevents you from ever filing another bankruptcy case in the future.
At 307 Bankruptcy, we are prepared to help you avoid a dismissal. Connect with our firm today to schedule a consultation.
