Law Office of Ginger C. Cord, PSC
Free Initial Consultation

Bankruptcies can be dismissed as well as discharged

If you are filing for Chapter 7 bankruptcy, your goal is to get your debts discharged. But the path to discharge is not assured, and you will have to do certain things to make sure that your case remains on track and headed for discharge.

But what about the other outcome — a dismissal? Unless you follow the letter of the law and comply with the court and the trustees, you could find yourself in the unfortunate position of having your bankruptcy petition dismissed.

What happens in a dismissal?

If the court dismisses your case and closes it, you are still saddled with your debtload. Creditors can resume pursuing you to pay what you owe. They can foreclose on your property once again, sue you and repossess your personal property.

In most instances, it is as if you had never filed for Chapter 7. In other words, this is the worst possible outcome, as you now have attorneys' fees as well.

How to avoid a dismissal

Listen to your attorney and file the proper paperwork within the stated time period. If you do not file everything when you file the petition for Chapter 7 bankruptcy, you will typically have 14 days to do so. If you are having trouble rounding up everything you need, your Lexington bankruptcy attorney can get the deadline extended.

If you don't file what needs to be filed within the time constraints allowed by law, your case will be dismissed.

Attend the Section 341 meeting

All debtors must attend the meeting of creditors, which is otherwise known as the Section 341 meeting. You have to show up even though it's rare for the creditors to attend.

At this meeting, the trustee can clarify anything unclear in the petition. You will be under oath and must be truthful. Some debtors may be able to attend this meeting electronically if their circumstances preclude their being physically present.

Completing the Financial Management course

No debts will be discharged unless the debtor completes the required financial management course. Since it can be attended in person, online or telephonically, you really have no valid excuse for not meeting this requirement.

File the certificate of completion

This is the final step to a discharge of your debts, so make sure that this is timely filed.

Once you and your attorney have done all the above, you will have successfully avoided a dismissal. At that point, your debts will likely be discharged by the court.

No Comments

Leave a comment
Comment Information
Email Us For A Response

How May I Assist You?

How May I Assist You?

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Law Office of Ginger C. Cord, PSC
155 E. Main Street
Suite 330
Lexington, KY 40507

Toll Free: 800-762-6916
Phone: 859-963-2073
Fax: 859-254-2192
Lexington Law Office Map