1. When can you refile a bankruptcy if it is dismissed -
- You can appeal to the court to recall your case which will be accepted if you make up all the missed payments and the appeal is made within a few months after the case was dismissed.
- If you qualify for a chapter 13 then you can file the Chapter 13 bankruptcy again even if your previous bankruptcy is just dismissed.
- You can file a chapter 7 again after the dismissal
If the reason for getting bankruptcy dismissed is due to your willful failure to obey court orders or at your request for dismissal, then you can re-file the case after 180 days of the dismissal.
2. Pros and Cons of a Chapter 7 Bankruptcy
Pros and Cons of filing chapter 7 bankruptcy
Here are some of the pros and cons of filing Chapter 7 bankruptcy.
Pros:
- No Personal liability: Chapter 7 releases your personal liability towards debts. You receive a discharge order within 4 months of filing the petition.
- Exemptions: You can retain certain assets as per Exemptions under chapter 7.
- Prevents legal actions: Once you file Chapter 7, it stops legal actions taken by your creditors. Such actions can be lawsuits, judgments, foreclosure, repossession, wage garnishment and collections. As per Chapter 7 bankruptcy laws, creditors shouldn't even make harassing calls demanding payments from debtors.
- Fresh financial start: Since Chapter 7 discharges your debts, you get the chance to organize and manage your finances better.
Cons:
- Lose assets: You lose assets as they are sold off to pay your creditors/lenders.
- Retain property liens: Chapter 7 does not remove property lien due to secured debts (mortgage or car loan). So, even if you get a discharge, you'll have to pay off the lien in order to save your property from foreclosure or repossession.
- Effect on Credit Score: Your credit score drops down by 250 points or so when you file file Chapter 7 bankruptcy. The bankruptcy remains on your credit report for about 10 years.
- New credit/mortgage: It's difficult to qualify for new credit or mortgage after you file Chapter 7 bankruptcy. If the market isn't doing well, no lender would offer you a mortgage even at higher rates of interest. It'll take at least 2 years to qualify for an FHA loan and 4 years for a conventional mortgage at affordable rates of interest. Check out a forum discussion on getting mortgage after bankruptcy.
No doubt bankruptcy chapter 7 helps you eliminate debts but there are negative aspects as well. You need to understand how it can work in your favor. Only then you can use it to your benefit and lead a debt free life.
2. Evicting a tenant who files for Bankruptcy -
3. Papers needed to file an Emergency Bankruptcy in Central District
Comments (0)
You don't have permission to comment on this page.