Bankruptcy allows you to legally resolve or erase debts. However, there's always a chance of your case getting dismissed. If you get a dismissal, don't panic. You may be able to refile.
The first thing you should do is extend the automatic stay which protects you from creditors. Repeat filings often give limited protection under the automatic stay. Here are some tips to extend the automatic stay for repeat filings.
Find Out the Reason for Dismissal
Before you refile, find out why the first case was dismissed. Under bankruptcy, you must follow specific instructions. Make certain you understand everything. Bankruptcy cases are commonly dismissed for non-payment in Chapter 13 bankruptcy, failure to pay court fines, refused credit counseling, not following proper procedure, and failure to include needed documents.
Understand Limitations and Exceptions
If you file again, you will have limited protection or no protection of the automatic stay. Filing two cases a year limits you to 30 days of automatic stay protection. If you file for the third time within the same year or had two cases dismissed within a year, you get no protection from the automatic stay. This prevents abuse of the bankruptcy system and it means you could be subjected to collection actions by creditors.
There are exceptions to what creditors can take. Private creditors cannot seize your property or garnish salary, because it wouldn't be fair to other creditors even with no protection. However, it does not exempt property included in the bankruptcy estate. If you get into more debt, new creditors won't be under the automatic stay.
File the Extension
Get the right forms from your local court district. If your jurisdiction doesn't have a form, you will have to create your own motion. Give a reason you think you deserve the extension, such as job loss, and prove you filed the recent case in good faith. The notice must be given to the trustee and served to all creditors within 30 days after you file.
You may be required to schedule a hearing date with the court. In other cases, you only attend a hearing if a creditor objects to the extension. Otherwise, the court will decide with a tentative ruling.
Don't lose all hope when you get a notice of bankruptcy dismissal. Following these tips should help you resolve your case. It is best to speak with a bankruptcy lawyer like Michael D Doyle Attorney at Law, whether it is your first case or a repeat case.
