What Happens if a Bankruptcy is Dismissed?

Getting bankruptcy dismissed usually takes the right set of circumstances. Once you enter into a bankruptcy proceeding, you usually want it to go through all the way. However, sometimes the judge will dismiss the case because of complications in the proceedings. If you do not file the right paperwork or do not fulfill your other obligations in this matter, they may dismiss the case. If this happens to you before the bankruptcy officially goes through, it can be troubling. Here are a few things to consider if your bankruptcy is dismissed. 

Credit History

One bad thing about having a bankruptcy dismissed is that it will most likely still show up on your credit report. As soon as you notify everyone that you are filing bankruptcy, it ends up on your credit report. Therefore, regardless of whether or not the proceedings actually go through, everyone is going to see that you filed bankruptcy. This can be devastating if you are not granted bankruptcy protection. You do not get the benefits of the bankruptcy but still may carry the blemish that comes with it.

Work With Creditors

When your bankruptcy case is dismissed, you will have to look at alternative means to take care of your debts. Usually when you are seriously considering bankruptcy, it means that you have some serious debts that need to be taken care of. Therefore, when that bankruptcy is dismissed, you still have to worry about those same debts. This time, you just have to take a different route to take care of them.

There are a few different options that you could take with your creditors. One option that you could look into is a debt management plan. This involves setting up a detailed payment plan with all of your creditors at once. You negotiate with your creditors and they may be willing to reduce the interest rate that you are paying them. As a result of an interest rate decrease, you will have a lower monthly payment to worry about. You can take care of this procedure yourself, or there is a number of companies that can handle it for you. 

Another option that you could talk to them about is a debt settlement. With this strategy, you negotiate a cash settlement price for the account. They will write off part of the debt and then take the remaining balance in cash from you. This will only work if you have some cash to work with, but it could be a good route to take. It will still hurt your credit, but it will not look as bad as a bankruptcy would. 


Another option that you have is to refile for bankruptcy again later. If you are filing for Chapter 7, you will have to wait at least 6 months to file again. If you filed for Chapter 13, you should be able to try again whenever you want. The next time you file, you need to address the reason that your case was thrown out in the first place. 

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