When you file for bankruptcy in Ohio, the primary goal is to make it through this process, obtain a discharge, and start fresh. However, many assume that a bankruptcy discharge is the same thing as a bankruptcy dismissal. Unfortunately, this is not the case, and these two outcomes are incredibly different. If you’re unsure how these differ or what happens when your case is dismissed, you’ll want to keep reading. The following blog explores what you should know about these difficult times and the importance of connecting with Franklin County bankruptcy lawyers to explore your legal options.
Are a Bankruptcy Dismissal and Discharge the Same Thing?
When your debt is discharged during bankruptcy, it means that you have successfully completed the bankruptcy process, and as a result, the court will erase your obligation to pay the remaining eligible debts. As such, you no longer have any legal obligation to repay creditors.
However, if your case is dismissed, it means that the court has stopped your case and closed it without granting a discharge. As such, you will still be liable for the outstanding debts. Additionally, collection efforts may resume, meaning you may find your assets at risk of being seized, and you could be sued as a result.
Why Might a Bankruptcy Case Be Dismissed by the Court?
Unfortunately, there are a number of reasons that your bankruptcy case may be dismissed by the court. Common reasons this can occur include, but are not limited to, the following:
- Failing to complete the mandatory pre-filing credit counseling course
- Incomplete paperwork
- Errors on paperwork
- Failure to pay the required fees
- Falling behind on payments during Chapter 13
- Hiding assets or underreporting income
- Disobeying court orders
- Filing the wrong chapter
In the event your bankruptcy case is dismissed, you may be able to file if certain conditions are met. Generally, this occurs when your case is dismissed without prejudice, meaning the reason for the dismissal is a procedural error. If this is the case, you will be able to re-file your case immediately after remedying the error. However, if your case is dismissed with prejudice, it is often indicative of fraud or abuse of the system. In this case, you will be prohibited from filing for bankruptcy is typically at least 180 days from the date of the dismissal.
As you can see, navigating the bankruptcy process can be incredibly overwhelming, and making errors during the filing process can drastically impact the outcome of your case. That is why working with an experienced bankruptcy attorney with Cousino & Weinzimmer is in your best interest. Our firm understands how difficult these matters can be to navigate, which is why we will do everything in our power to help you receive the best possible outcome. Contact us today to learn more.
