What Happens if My Bankruptcy Case is Dismissed?
When a case is dismissed for a variety of reasons there are several consequences that can ensue. Essentially, the biggest issue with a dismissed bankruptcy case is that a person no longer has bankruptcy protection from creditors. This means that creditors who were unable to collect from someone in bankruptcy can now call, demand, collect and sue as they were able to before the bankruptcy was filed. This could mean a lawsuit, foreclosure or vehicle repossession could begin again where it left off before the bankruptcy was filed, or begin from scratch.
This also means if a person was having their wages garnished, that garnishment may be able to begin again.
Another consequence of a bankruptcy case being dismissed is that a person only receives limited protection when they file 2 or even 3 bankruptcies in the same 12 month period. For example, if a case is dismissed and then refiled within 12 months, the person filing will only receive 30 days temporary protection from garnishments etc. The third time, there is no protection at all until the case is discharged.
