If the New York State Bankruptcy Court rules to dismiss your bankruptcy case, this means that it will not grant your once-eligible discharge. This means that you may still be held financially responsible for all your debts, and all the efforts you have made to relinquish them thus far would have been for nothing. Now, with this, the court may either declare it a dismissal with or without prejudice. For your sake, you may hope that it is the latter. With that being said, please follow along to find out the consequences of your bankruptcy being dismissed with prejudice and how a proficient Rockland County bankruptcy attorney at The Law Offices of Allen A. Kolber, Esq., P.C., can help you avoid this outcome in your case.
Why would my bankruptcy be dismissed with prejudice?
Simply put, a bankruptcy dismissal with prejudice is a severe penalty imposed when the New York State Bankruptcy Court has grounds to believe you abused the bankruptcy system or engaged in willful misconduct at any point in your case proceedings. Examples of such abuse or misconduct may include the following:
- The court believes you were intentionally hiding assets or income from your bankruptcy paperwork.
- The court believes you were filing for bankruptcy repeatedly to delay creditors from foreclosing on your home.
- The court believes you were failing to follow court orders or meet court deadlines after being given multiple chances.
What happens if my bankruptcy case is dismissed with prejudice?
As alluded to above, the consequences for having your bankruptcy case dismissed with prejudice are far greater than if it were dismissed without prejudice. Generally speaking, it may permanently close your bankruptcy case, meaning that you are barred from refiling for the same claim ever again. In a more ideal scenario, the New York State Bankruptcy Court may only ban your refiling opportunities for 180 days, or a little longer. But even so, the court may prohibit you from discharging the same debts that existed at the time of your dismissed case.
Regardless, the automatic stay may be lifted immediately, meaning your creditors may resume aggressive collection activities against you. This is all while this gets documented on your credit report for the next seven to 10 years, without even reaping any of the benefits of undergoing a bankruptcy case. Lastly, and most seriously, if the actions that led to your dismissal with prejudice entail serious deception or willful disobedience, you may face separate criminal charges for bankruptcy fraud or contempt of court, which can result in prison time and hefty fines if convicted.
If this is what you are currently up against, do not try to put up a fight without the legal assistance of a talented Rockland County bankruptcy attorney from The Law Offices of Allen A. Kolber, Esq., P.C. We urge you to retain our services as soon as possible.
