Tips And Guide For Debt And Loan Management

Betty and Theo had their case dismissed. They came into Steve’s office one day explaining that they needed to file bankruptcy. He prepared all of the paperwork, had them sign it, filed the case, and waited for the first meeting of creditors. When they all went to the meeting a month later, the trustee asked Betty and Theo some seemingly very simple questions. Had they filed bankruptcy in the past two years? “No,” they replied. Did they list all of their assets in their paperwork? “Of course!”
They were lying, and the trustee knew it. They had filed five bankruptcies in the previous four years, abusing the system and trying to keep their house out of foreclosure. They also had a $10,000 car that they failed to disclose in their paperwork. The trustee dismissed their case, but not before seizing the car and selling it to pay back their creditors.
Dismissal of a case is an extreme circumstance that occurs very rarely. It only happens if your filing fees were never paid, if you fail to file all of your paperwork, if you fail to attend the first meeting of creditors, or if you filed your case in bad faith. Cases that are dismissed are usually dismissed “without prejudice,” meaning you can file again. Just do it right the next time.