My Bankruptcy Case Was Dismissed, What Now?
Recently the bankruptcy law network website posted an article regarding the dismissal of the bankruptcy case and what happens if your case is dismissed. My Bankruptcy Case Was Dismissed, What Does That Mean? The information is accurate, however it didn’t really give you a solution to the problem other than call your attorney.
My response: “good answer!”
Until the bankruptcy case is actually closed, there is still a chance to rescue your case from dismissal. There is a motion that I’ve had to use called the “Motion to reconsider dismissal.”
You don’t want to be here. If your case has been dismissed, it is probably because you did not follow an explicit instruction by the bankruptcy court, such as failure to submit documents or make payments.
Most dismissals happen in Chapter 13 cases, and most of these dismissals are the result of not paying your Chapter 13 trustee payment.
If your case is dismissed, the automatic stay that protects you from debt collectors is lost immediately, however there are certain circumstances where the judge will withdraw his dismissal order.
So you’re probably wondering: “How do I get the judge to withdraw the dismissal order?” You’re probably not going to like the answer. You or your attorney (hopefully by now you have an attorney, you really need one) will have to go in front of the judge who ordered the case dismissed and convince him or her that your situation has changed and you are unlikely to run into the problem that caused your case to be dismissed in the first place. If there ever was a Hail Mary pass a bankruptcy law, the motion to reconsider dismissal is it.
I had a client who fell behind on their chapter 13 plan payment and I was not able to convince a Chapter 13 trustee that they should continue the case to another hearing. The case was dismissed, and because of that I filed a motion to reconsider dismissal after speaking with my client and determining that they could in fact come up with the funds to catch up to chapter 13 plan payment by the date of the hearing.
I went before the judge with a certified check for the entire amount my client was past due on the Chapter 13 plan payment. Furthermore, I explained to the judge with detailed spreadsheets why my client would not fall behind again and respectfully requested that the judge reconsider his dismissal and reinstate my client’s case.
The judge was convinced in the case was reinstated.
Two weeks later, I was in front of a different judge, used the same tactic, and didn’t get the same result. My client’s case was dismissed, that was a final decision, and now my client was going to lose her house because they fell behind on their Chapter 13 plan payment.
The moral of story is this, do not depend on the motion to reconsider dismissal order to save your home, however, if your case has already been dismissed and your lawyer is telling you you’re done, ask him or her about a motion to reconsider dismissal, and if your lawyer can’t or does not want to do that, call me at 484-661-2891 or e-mail me jim@padebt911.com and we can discuss whether or not this Hail Mary pass is worth throwing.
note: I will have to consult with the attorney who filed your bankruptcy case prior to accepting your matter.
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Comments
What if you just inadvertently left out one form and didn’t file it in time, hence violating the court order to do that but are current on the payments ? Are your chances better in this case? Thanks.
You never want to be in the position of a case being dismissed, even for a document being out of place. There is a difference between a motion to dismiss, an order to dismiss, and a dismissal. If the case has not yet reached dismissal status, you can file (in most courts) a motion to reconsider dismissal. I would file the missing document on ECF and attach a copy to the motion. If it goes well, you won’t even need to see the judge to get the motion to dismiss withdrawn.
It always helps to be current on payments. If you have any specific questions about a case, you can email me at jim@padebt911.com
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