The United States Bankruptcy Code enforces strict guidelines for how consumer bankruptcy proceedings are supposed to play out. As the debtor of a bankruptcy case, you will want to do everything to comply with these rules and regulations. Or else, the New York State bankruptcy court may abruptly stop or dismiss your proceedings. Continue reading to learn more about bankruptcy dismissal and how an experienced Rockland County bankruptcy attorney at The Law Offices of Allen A. Kolber, Esq., P.C. can help you understand this concept.
What is a dismissal of a bankruptcy case?
By definition, a dismissal means that the New York State bankruptcy court stops all proceedings in your bankruptcy case and any related adversary proceedings, all while not entering a discharge order. In other words, your bankruptcy case is closed without eliminating or reorganizing your debt. Further, you are still liable for paying off your outstanding debts.
Though a bankruptcy dismissal has a negative connotation, there may be circumstances in which you voluntarily petition the court for it. This may be especially relevant if you embarked on Chapter 13 case proceedings. For example, you may feel a bankruptcy case is no longer necessary if you recently received a raise at work or a higher-paying job. With this, you may have enough income to pay off or negotiate a debt settlement plan with your outstanding creditors without bankruptcy intervention.
On the flip side, though, you may want your bankruptcy case dismissed if you recently lost your job or once steady income resource. This is because you may no longer be able to afford the monthly payments part of your three- to five-year repayment plan. Rather, you may feel more comfortable refiling for bankruptcy and drafting a more affordable repayment schedule.
How is a dismissal different than a closing or conversion?
In addition to a bankruptcy dismissal, there is such a thing as a bankruptcy closing and a bankruptcy conversion. On the one hand, a bankruptcy closing means that all activities within the case have been completed successfully. That is, your bankruptcy trustee has finally paid off all your outstanding creditors in Chapter 7, or you have finally made your last monthly payment in Chapter 13. This is the typical outcome you may expect when you initially file for bankruptcy.
On the other hand, a bankruptcy conversion means that you request the New York State bankruptcy court to change your case from Chapter 7 to Chapter 13, or vice versa. Or, your bankruptcy trustee, one of your outstanding creditors, or the court itself may have requested this for rightful reasonings. At any rate, this essentially suggests that you must start your bankruptcy proceedings all over again.
In conclusion, don’t hesitate to get in touch with a skilled Rockland County bankruptcy attorney today. We, at The Law Offices of Allen A. Kolber, Esq., P.C., look forward to your phone call.
