When available, applying for Chapter 13 bankruptcy is a preferable option for individuals because it allows them to keep their assets and avoid foreclosures and repossession. Debts are instead reorganized into a new repayment plan. However, certain situations could cause your filing to be dismissed, leaving you once again responsible for the debts. Here’s what you should know if this happens to you.

Why Chapter 13 Bankruptcy Filings Are Dismissed

The most common reason for a Chapter 13 dismissal stems from failing to keep up with your monthly payments. It could also occur if you fail to complete a mandated credit counseling course. The trustee would then file to have your case dismissed. This is typically done “without prejudice,” which means you can immediately file for bankruptcy again.

However, if it’s proved that you abused the process by lying under oath, concealing property, or destroying records, your case will be dismissed “with prejudice.” When this occurs, the court won’t allow you to refile for a designated time or discharge earlier debts.

How to Appeal or Refile

If your case is dismissed without prejudice, you could refile for Chapter 13 bankruptcy to secure a modified plan with a more manageable payment amount. Or you could file a Chapter 7 bankruptcy, which doesn’t require monthly payments (though you will have to liquidate assets).

If your case was dismissed with prejudice, an appeal must be filed within two weeks with an explanation of why you deserve an appeal. To win your appeal, you’ll need to prove that your dismissal was a mistake and not something you did wrong.

If you need an attorney to guide you through the Chapter 13 bankruptcy process, contact the Law Offices of Harry G. Lasser in Cookeville, TN. With over 20 years of experience, this legal team provides a wide range of services to help you determine which bankruptcy or debt relief option is best for your situation. To learn more or to request a free consultation, visit them online or call (931) 372-9988.