Can my creditors still demand money if my bankruptcy is dismissed? 32 Answers as of June 09, 2013

If my bankruptcy is dismissed, voluntarily or by the court, can the creditors that were included in the bankruptcy demand the full amount of the remaining original debt? Can I utilize consumer credit counseling service (the non-profit one)?

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Mercado & Hartung, PLLC
Mercado & Hartung, PLLC | Christopher J. Mercado
Yes.
Answer Applies to: Washington
Replied: 6/9/2013
Heupel Law
Heupel Law | Kevin Heupel
Yes, if your bankruptcy was dismissed, then creditors can collect the debt because you never received a discharge of your debts.
Answer Applies to: Colorado
Replied: 8/9/2011
Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
Yes, they can demand full payment. I have had many clients come in with judgements against them after being in a debt consolidation plan, be wary,
Answer Applies to: California
Replied: 8/1/2011
Breckenridge and Walton
Breckenridge and Walton | Alan D. Walton
When your case is dismissed, it is as though it was never filed, so you creditors can seek full recovery from you (less that which they received from the bankruptcy).
Answer Applies to: Michigan
Replied: 7/29/2011
Apple Law Firm PLLC
Apple Law Firm PLLC | David Goldman
If you did not complete your bankruptcy they can begin collections again
Answer Applies to: Florida
Replied: 7/29/2011
    Tucker Legal Clinic
    Tucker Legal Clinic | Samuel Tucker
    Yes, your creditors will be in the same position they were prior to filing. The goal is to get a discharge. Filing the bankruptcy petition just stops collection efforts while the case is pending before the discharge. Yes, you may avail yourself of credit counseling/debt resolution services.
    Answer Applies to: Mississippi
    Replied: 7/28/2011
    Law Offices of Michael J. Berger
    Law Offices of Michael J. Berger | Michael J. Berger
    Yes.
    Answer Applies to: California
    Replied: 7/28/2011
    Bankruptcy Law office of Bill Rubendall
    Bankruptcy Law office of Bill Rubendall | William M. Rubendall
    Once a bankruptcy is dismissed creditors can pursue collection. This would be an opportunity to use a consumer credit counseling program such as Money Management International (MMI).
    Answer Applies to: California
    Replied: 7/28/2011
    Carballo Law Offices
    Carballo Law Offices | Tony E. Carballo
    The bankruptcy case did not change anything. You still owe the money as you did before your filed the dismissed bankruptcy case. Yes, you can consolidate and pay your debts if that is what you want to do.
    Answer Applies to: California
    Replied: 7/28/2011
    Stuart Jon Bierman  Attorney at Law
    Stuart Jon Bierman Attorney at Law | Stuart Jon Bierman
    Yes, the creditors can demand payment in full if your bankruptcy is dismissed. You should use an attorney to maximize your chances of filing a successful petition.
    Answer Applies to: New Jersey
    Replied: 7/28/2011
    Lewis Adams and Associates
    Lewis Adams and Associates | Lewis P. Adams
    If you case is dismissed, your creditors are able to collect as if you had never filed. The creditor has all of the remedies available to them under their contract. You can certain utilize consumer credit counseling services, but understand that they have no ability to force settlement or agreement with your creditors, any resolution with the creditor is all voluntary on both sides.
    Answer Applies to: Utah
    Replied: 7/28/2011
    Financial Relief Law Center
    Financial Relief Law Center | Mark Alonso
    Your bankruptcy was dismissed or discharged? If your bankruptcy was dismissed that means that the bankruptcy did not process all the way through to discharge your debt. Therefore, the debt you listed on the bankruptcy petition still exists because it was not discharged, and your creditors can still try and collect from you on those debts. Credit counseling, while it provides helpful information and is a requirement in a bankruptcy filing, will not resolve the debts. If you have the ability to settle or otherwise work out agreements with your creditors, that may be a viable course of action for you to take. Otherwise, if that is not possible and are certainly in need of bankruptcy assistance, you should resolve any issues that caused your case to be dismissed in the first place, or if that is not something you can do without the help of an attorney, you should consider contacting one to assist with the situation.
    Answer Applies to: California
    Replied: 7/28/2011
    Indianapolis Bankruptcy Law Office of Eric C. Lewis
    Indianapolis Bankruptcy Law Office of Eric C. Lewis | Eric Lewis
    If your bankruptcy is dismissed, then creditors can seek all remedies available just as if the bankruptcy never happened.
    Answer Applies to: Indiana
    Replied: 7/28/2011
    Law Offices of Joseph A. Mannis
    Law Offices of Joseph A. Mannis | Todd Mannis
    If your case is dismissed, you are not under any bankruptcy protection at all. Your creditors may take whatever remedies they wish.
    Answer Applies to: California
    Replied: 7/27/2011
    Mauritz Van Niekerk, Attorneys at Law
    Mauritz Van Niekerk, Attorneys at Law | Christiaan van Niekerk
    No they can not.
    Answer Applies to: New York
    Replied: 7/27/2011
    Eric J. Benzer, Attorney at Law
    Eric J. Benzer, Attorney at Law | Eric Benzer
    Yes.
    Answer Applies to: Maryland
    Replied: 7/27/2011
    The Schreiber Law Firm
    The Schreiber Law Firm | Jeffrey D. Schreiber
    A dismissal is as if not bankruptcy was filed, so the creditors can resume collection of the full amount due to them. Use can use consumer credit counseling, but it requires the consent of the creditor to the proposed repayment plan. It is not the same as the legal effect of a Chapter 13 bankruptcy repayment plan.
    Answer Applies to: California
    Replied: 7/27/2011
    Ashman Law Office
    Ashman Law Office | Glen Edward Ashman
    Yes. If your case is dismissed, you owe the full remaining balance of your debts. Creditors do not have to work with credit counselers.
    Answer Applies to: Georgia
    Replied: 7/27/2011
    Colorado Legal Solutions
    Colorado Legal Solutions | Stephen Harkess
    If your bankruptcy was dismissed then it is as if you never filed. Your creditors can try to collect from you and you can try to deal with them just as you would before you filed bankruptcy.
    Answer Applies to: Colorado
    Replied: 7/27/2011
    The Law Office of Marvin Wolf
    The Law Office of Marvin Wolf | Marvin Wolf
    If a bankruptcy fails, it's like it never happened, so all accrued interest can get added back on. Upon dismissal, the automatic stay expires, and creditors can once again collect on the debts. So - don't fail. All consumer credit counseling is supposed to be non-profit. That doesn't mean the owners don't make any money or that they will do a good job on your debts or can do anything against an aggressive creditor.
    Answer Applies to: New Jersey
    Replied: 7/27/2011
    Bird & VanDyke, Inc.
    Bird & VanDyke, Inc. | David VanDyke
    Yes your creditors can still collect if you have not received a discharge. I have no advise for you regarding credit counseling.
    Answer Applies to: California
    Replied: 7/27/2011
    Law Offices of John J. Ferry, Jr.
    Law Offices of John J. Ferry, Jr. | John J. Ferry, Jr.
    If the bankruptcy is dismissed without a discharge of debts, then yes, the creditors can demand full payment. You can certainly try a "counseling" service, but I wouldn't recommend it. If you do, be very careful and make sure you get information in writing on how much they are going to charge you. Even the so-called non-profit agencies almost always charge, and at times at exorbitant rates.
    Answer Applies to: Pennsylvania
    Replied: 7/27/2011
    R. Steven Chambers PLLC | R. Steven Chambers PLLC
    Yes. Dismissal of a bankruptcy makes it as if it never happened. Once dismissed, your creditors can demand the full amount that you owe, including late fees and interest that accrued after you filed. You can utilize consumer credit counseling.
    Answer Applies to: Utah
    Replied: 1/21/2013
    Law Office of J. Thomas Black, P.C.
    Law Office of J. Thomas Black, P.C. | J. Thomas Black
    Yes, if your bankruptcy is dismissed, as opposed to being discharged, the automatic stay is no longer in effect, and your creditors can again demand money from you, and take all other collection actions that they are allowed to by law. Your creditors can seek to collect the full amount that they were due. If they received payments from you during the bankruptcy, they must give you credit for those, but they can figure how much they are owed based upon your original contract with them, not a chapter 13 plan that may have been approved by the court. You could try to use a non-profit consumer credit counseling service, but I'm not sure that all of your creditors will cooperate with them. You should likely consult with your original attorney or another bankruptcy attorney to discuss what is best. Sometimes it's best to file another bankruptcy case, to at least obtain a discharge of your debts.
    Answer Applies to: Texas
    Replied: 7/27/2011
    Law Office of Maureen O' Malley
    Law Office of Maureen O' Malley | Maureen O'Malley
    I'm afraid so. Dismissal ends the proceedings and the protections of BK. Are you asking about consolidating or reducing your debt? Yes, you could use a non-profit. But, depending on the reason for your dismissal, you could file again after enough time has passed. And if you filed on your own, get a lawyer.
    Answer Applies to: Virginia
    Replied: 8/8/2011
    Selleck Legal, PLLC
    Selleck Legal, PLLC | Stacey Selleck
    Was your case dismissed or discharged? If it was dismissed, that means you did not get a discharge and the debts are still owed.
    Answer Applies to: Michigan
    Replied: 7/27/2011
    Braunstein Law, PC
    Braunstein Law, PC | Jacob Braunstein
    If a bankruptcy is dismissed and not discharged, the creditors that were listed in the bankruptcy can demand the full amount of the remaining original debt.
    Answer Applies to: Oregon
    Replied: 7/27/2011
    Symmes Law Group, PLLC
    Symmes Law Group, PLLC | Richard James Symmes
    Yes your creditors may come after you because you will no longer be protected by the automatic stay in bankruptcy.
    Answer Applies to: Washington
    Replied: 7/27/2011
    Judith A. Runyon, Esq. Attorney at Law
    Judith A. Runyon, Esq. Attorney at Law | Judith A. Runyon
    Yes.
    Answer Applies to: California
    Replied: 7/27/2011
    Shmucher Law, PL
    Shmucher Law, PL | Ofer Shmucher
    If your bankruptcy case is dismissed then you are back to square one. Your creditors can go back and demand payment, sue you, or try to negotiate with you. You are allowed to go meet with a credit counseling company, or even attempt to file for bankruptcy again (if it was without prejudice and you wait 180 days).
    Answer Applies to: Florida
    Replied: 7/27/2011
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