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