My case just dismissed! What should I do?
Some bankruptcy cases dismiss. And when a dismissal occurs, you immediately travel back in time to the instant before the case was filed, and immediately return to the present date. What do I mean by this?
It means ALL of your debts spring back to life, and all of the late fees, penalties, charges, and fees that were neatly wrapped up for the long haul in your bankruptcy will return, back dated to the days of filing. Most notably, collation calls start, and garnishments can resume. If you were paying your vehicle in a Chapter 13 plan, the car may be subject to quick repossession. This is not the place debtors in bankruptcy want to end up.
What can be done to fix this? There are a couple of options:
1. You can file a new bankruptcy case. Subject to some restrictions, you can generally file a new bankruptcy if your past bankruptcy failed. You will need to show to the court that you are doing so in good faith and that you are not trying to manipulate the system, but this is generally a straightforward motion to present to the court.
2. You can try to reopen your prior bankruptcy. Perhaps you failed to make a payment to the trustee, but you have the money to make the payment. Or perhaps your forgot to pay the court fee, but you have the fee now. You can move the court to allow you to reopen the case. The trustee, your creditors, and the court may object, but you are allowed to move the court to reopen the case.
Of course, the best solution is to not let the case dismiss in the first place, but if your case is dismissed, you should call your attorney to discuss options.