Motion to vacate dismissal bankruptcy
Occasionally the discharge is delayed past that time frame.
In Chapter 7, the bankruptcy court will issue the discharge at the end of the time period for creditors or other interested parties to file an objection to the discharge or to the bankruptcy petition, usually about three to four months after the initial filing of the bankruptcy petition. Most unsecured debts fall under a bankruptcy discharge order. A debtor who successfully completes a bankruptcy proceeding cannot be legally required to pay any debts subject to the bankruptcy discharge.Īny creditor holding those debts cannot take any legal action to collect those debts and cannot communicate with the debtor regarding those debts. What Is Discharge in Bankruptcy?Ī bankruptcy discharge refers to the order of the bankruptcy court, issued at the end of a bankruptcy proceeding, which releases a debtor from personal liability for certain types of debts (often referred to as “dischargeable” debts).
Because dismissal means the end of the automatic stay, creditors can immediately recommence trying to collect your debts, including resuming contacting you regarding your debts and resuming repossession, garnishment, or foreclosure efforts. When your bankruptcy case is dismissed under whatever circumstances, you will still have a notation on your credit report of your bankruptcy filing. Even if the prior case was dismissed without prejudice there may be limitations on the automatic stay in the next case. If the case is dismissed “with prejudice,” then you are not permitted to file bankruptcy for 180 days. If the court has dismissed your case or if the bankruptcy trustee or a creditor successfully moved to dismiss the case, the dismissal of your case may be designated as “without prejudice” or “with prejudice.” If your case is dismissed “without prejudice,” you have the option to file a new bankruptcy petition immediately. If you have obtained a voluntary dismissal of your bankruptcy case after a Motion for Relief from Stay was filed, your option to refile in the next six months may be limited. However, voluntarily dismissing your own bankruptcy case can negatively impact your options for filing for bankruptcy in the future or the right to an automatic stay in a future bankruptcy case. Occasionally a Motion to Dismiss may seek a bar to refiling for a period of time.Ī debtor may file a motion to voluntarily dismiss their bankruptcy case, which the bankruptcy court may grant if it finds the debtor meets the requirements for voluntary dismissal. The bankruptcy trustee, the US Bankruptcy Administrator, or a creditor may file a motion for dismissal of a bankruptcy case. What Is Dismissal in Bankruptcy?Ī dismissal in bankruptcy means that the bankruptcy court has stopped all proceedings in the main bankruptcy case and in all adversary proceedings related to the bankruptcy case and that the bankruptcy court has not entered a discharge order in the case.Ī bankruptcy court may choose to order dismissal of a case on its own, such as when the debtor commits misconduct in connection with the bankruptcy proceeding (for example, knowingly concealing assets from the court or the bankruptcy trustee, or failing to make required payments under a Chapter 13 repayment plan), or if the judge deems the filing abusive. We regularly work with clients facing serious financial emergencies, including auto repossession or foreclosure on their homes.Ĭontact the dedicated bankruptcy attorneys of Sasser Law Firm today to schedule a free and confidential initial consultation to go over your legal rights and options and to learn more about what a dismissal or a discharge may mean in your bankruptcy case. We’ve helped over 8,500 individuals and businesses throughout North Carolina file for bankruptcy, including bankruptcy petitions under Chapter 7, Chapter 11, and Chapter 13. We have three board-certified bankruptcy attorneys who have the specialized legal knowledge and experience you need to help you no matter what may come up in your bankruptcy case. When you have questions about the bankruptcy process and what a dismissal or a discharge means to for your finances, let the experienced North Carolina bankruptcy lawyers from Sasser Law Firm help you understand the bankruptcy process and explain more about your rights and options in bankruptcy. When you find yourself in debt or serious financial trouble and are considering filing for bankruptcy, you will need to know the differences between bankruptcy dismissal and bankruptcy discharge and what effect both can have on your bankruptcy case. If you have never filed for bankruptcy, you might have heard bankruptcy-related terms like “ dismissal” and “ discharge,” but you may not know what they mean.