What Happens if My New York Bankruptcy Case is Dismissed?

Having your bankruptcy case dismissed is not a happy outcome for most cases. 

Usually, it happens when you have failed to comply with court rules, have violated court procedures, have failed to file forms on time, or have committed bankruptcy fraud. Your case may also be dismissed if you fail to attend your 341 meeting of creditors.

In other words, you’ve made the kind of mistakes that you probably wouldn’t have made if you’d been working closely with a New York bankruptcy lawyer. 

If your case is dismissed:

  • You will not receive a bankruptcy discharge.
  • You lose the protection of the automatic stay.
  • If you filed chapter 13, you’ll lose cramdown benefits. 
  • You may file again in some cases but may lose the full protection of the automatic stay.

There are two types of dismissal.

In a case that is dismissed without prejudice, you may file bankruptcy again right away. This is the type of dismissal you might receive if you made a minor procedural error.

If your case is dismissed with prejudice, the court believes you acted in bad faith or that you committed or attempted to commit bankruptcy fraud. You generally cannot file a case again for six to twelve months, and in some cases, may never be eligible to discharge the debts in your first filing.  

After a trustee files a Motion to Dismiss, you will have a short window of time that you can use to review and oppose it. You will absolutely need a bankruptcy attorney’s help to do this successfully.

If you want a successful bankruptcy discharge—the outcome that grants you freedom from all of your debts—then you will want to ensure that you do everything right the first time. To do this, you’ll need to work closely with a New York bankruptcy attorney. 

If you’re contemplating bankruptcy, why not schedule a free one-hour consultation with us? We’ll help you choose the right bankruptcy chapter, evaluate your situation for timing issues, and ensure that your paperwork is submitted correctly and on time. Then, the only thing you’ll have to worry about is making your 341 meeting of creditors. 

Only 63.8% of pro se bankruptcy filers achieve a discharge, a number which falls to 39% if you’re filing Chapter 13. By contrast, 94.1% of filers whom an attorney represents receive a discharge. Why not put the odds in your favor? Contact us today.

See also:

The Pros & Cons of Chapter 7 vs. Chapter 13 Bankruptcy

Debunking Common Bankruptcy Fears for New York Residents

4 Mistakes to Avoid at Your 341 Meeting of Creditors


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