What Happens If My Chapter 13 Bankruptcy Plan Is Dismissed in South Carolina?
Unfortunately, filing for bankruptcy does not always mean that you’ll get the financial relief you need to manage your overwhelming debt. The court may dismiss your bankruptcy case for a range of reasons. If your Chapter 13 bankruptcy plan is dismissed in South Carolina, it’s as if you never filed for bankruptcy at all. The automatic stay imposed when you filed your bankruptcy petition will be lifted immediately.
Consequently, your creditors will resume their debt collection efforts or take legal action against you. You will also be required to pay any interest or penalties on debts that would’ve been discharged in a successful Chapter 13 bankruptcy. Additionally, there’s the issue of whether your case was dismissed with or without prejudice. This is immensely crucial because it can drastically impact your ability to refile for bankruptcy and get rid of your financial woes.
An experienced Columbia, SC, Chapter 13 bankruptcy lawyer can help you navigate the system so that you avoid the pitfalls that could lead to dismissal of your case. It is not recommended that you try to file a bankruptcy case on your own. If your case is dismissed, speak to a lawyer and explore your options that may be available going forward.
What’s The Difference Between A Chapter 13 Bankruptcy Case That’s Dismissed With Prejudice and Dismissed Without Prejudice?
If your Chapter 13 case was dismissed with prejudice, it means the court closed your case, and you cannot refile for bankruptcy for a certain amount of time, often 6 or 12 months. In most cases, the court dismisses a bankruptcy case with prejudice if a debtor breached the conditions of their case due to fraud, repetitive filings, non-compliance with court orders, or an unreasonable repayment plan.
On the other hand, if your Chapter 13 case was dismissed without prejudice, it means the court closed your case, but you can refile for bankruptcy without waiting for a specific period. Common reasons for a dismissed Chapter 13 bankruptcy case without prejudice include correctable issues, such as temporary financial issues, failing to make payments, and issues with paperwork.
Regardless of the reason for the dismissal of your case, you should speak to a Columbia, SC, Chapter 13 bankruptcy attorney to find out what you should do afterward.
What Should I Do If My Chapter 13 Bankruptcy Plan Was Dismissed in South Carolina?
You should carefully review the court’s dismissal order to find out why it dismissed your case. You should then work with your Columbia, SC, Chapter 13 bankruptcy lawyer to fully understand why your case was dismissed and the specific things you can do after the dismissal.
For example, if your bankruptcy case was dismissed with prejudice, your attorney can help you explore other bankruptcy options or other strategies to manage your debts. If it was dismissed without prejudice, your Columbia, SC, Chapter 13 bankruptcy attorney can help you correct the issues cited for the dismissal and refile your case.
Our Seasoned Columbia, SC, Chapter 13 Bankruptcy Attorney Will Not Let a Dismissal Derail Your Path to Financial Freedom
If your Chapter 13 bankruptcy case did not go as planned, our Columbia, SC, Chapter 13 bankruptcy lawyer is ready to help. At Reed Law Firm, we have helped numerous clients navigate denied and dismissed bankruptcy cases successfully, and we can do the same for you. Contact us online or call our office to set up your complimentary case consultation with our Columbia, SC, Chapter 13 bankruptcy attorney.
