How to Fix a Chapter 13 Bankruptcy Dismissal
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Avoid it in the first place. The best way to fix a Chapter 13 bankruptcy dismissal is to avoid having it dismissed. Have all paperwork prepared in advance. Have a lawyer to represent you. The lawyer should be intimately familiar with tax law. Be as honest with him as you possibly can. If you leave out debt or misrepresent your finances, you increase your chances of the bankruptcy petition being dismissed. - 2
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Adhere to the schedule imposed. If you are late with a payment, you will have a period of time to make it up. This is generally three weeks. Do all that you possibly can to make this payment. Avoid dining out. Cut down on expenses such as unnecessary driving or gifts. This will prevent the bankruptcy from going into dismissal. - 3
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File a Motion to Reinstate the Case. This is also called a Motion for Relief from the Dismissal Order. If the case is dismissed after you have petitioned the court you can refile. Filing the motions in question will result in fees. The case may be heard again. It may also be dismissed again. - 4). File a Motion to Reopen the Case and then a Motion to Reinstate the Case. If a debtor misses two or more payments in a row, the trustee overseeing his case can dismiss the terms of the bankruptcy agreement and deny the person in question the protection of the court. The person in question can petition the court to have this decision overturned. If this happens, it is best to argue this is a temporary situation. Bring in evidence to illustrate attempts to redress it such as job-hunting efforts. The judge in question may grant the petition and allow the terms of the bankruptcy to continue. You will be charged fees by the court for this petition.
- 5). File in a different state. If you have a bankruptcy dismissed in one state, you can move to another state and get the case reopened, provided you have lived in that state for a period of time such as three months. This is a drastic step. However, if you are faced with serious financial issues it may be worth it. Consider a temporary move to a rented apartment if possible. Ask a friend or relative if you can stay with them while you plan the petition.
